BTC, ETH 'Short-Term Bottom' but Trend Remains Negative, Analysts Explain

BTC, ETH 'Short-Term Bottom' but Trend Remains Negative, Analysts Explain

Cryptocurrency markets have been struggling over the past few weeks, with Bitcoin (BTC) and Ethereum (ETH) both experiencing significant losses. However, some analysts are now seeing signs of a "short-term bottom" for these two cryptocurrencies. In an interview with CryptoSlate, Nansen’s senior analyst Aurelie Barthélémy said, “Bitcoin and Ether (ETH) have formed a short-term bottom, but the daily timeframe trend remains negative. There will [likely] be a dead cross between the 50-day simple moving average (SMA) and the 200-day SMA, which could lead to further downside.” Barthélémy added that for the bearish trend to break, BTC would need to hold above $62,000, but the $70,000 to $71,000 area is “still a tough resistance.” For ETH, the analyst said the key resistance to watch is $2,700. Another analyst, Josh Rager, also believes that BTC and ETH have formed a short-term bottom. However, he cautioned that the overall trend is still negative and that further downside is possible. “I think we're in a relief rally in a bear market,” Rager said. “I don't think this is the start of a new bull market. I think we're going to continue to see lower lows and lower highs.” Despite the short-term bearish outlook, both Barthélémy and Rager believe that BTC and ETH are still good long-term investments. “I think Bitcoin is still a very good long-term investment,” Barthélémy said. “It's a store of value and a hedge against inflation.” Rager added, “I think Ethereum is still a very good long-term investment. It's the leading smart contract platform and it's going to continue to be a major player in the future of finance.”