ETHXBT looks ready to resume its drop after testing the resistance at 0.02400. This lines up with a falling trend line and the 100 SMA dynamic resistance. The 100 SMA is below the 200 SMA so the path of least resistance is to the downside, potentially dragging ETHXBT to the previous lows at 0.01300 or much lower.
Stochastic is heading south so ETHXBT could follow suit. RSI is also moving lower, indicating that sellers are taking control of price action. Increased financial market uncertainty could bring more traders to buy bitcoin, as investors anticipate central bank action and potential interventions.
Analysts are speculating that the BOJ, SNB, and PBoC might be among the first to intervene in the financial markets, driving traders away from riskier assets. This could spur demand for alternative assets like bitcoin and ethereum, as these can’t be altered by governments or central banks.
The EU referendum count is coming to a close and it seems pretty clear that the UK will be exiting the region, giving rise to potential job losses and a likely recession for the year. It would also keep uncertainty in play for the next couple of years while the UK and EU iron out their plans to make an orderly exit.
Throughout this period, traders could prefer less volatile price action of cryptocurrencies, as these have steadily gained support throughout the month. In terms of the two, bitcoin could be on much stronger footing as more retailers and institutions have been more familiar with its concept compared to ethereum.
Besides, bitcoin trading is offered in more parts of the world, including China, where investors appear to be buying the cryptocurrency in times of uncertainty. Rumor has it that their central bank is possibly ready to cut the RRR and might lead to another stock market slump.