Price analysis of Bitcoin and most of altcoins such as Ethereum shows that they have been in recovery trend recently, but further recovery may be limited. Bitcoin price got back above $23,000 and ever re-tested $24,000 during early Asian hours on Wednesday. Ethereum price managed to recover too and settle above the critical resistance level of $600-610. Some smaller alternative coins experienced double-digit gains, and some of them refreshed all-time highs (ATH). Synthetix had the best performing in the market with over 35% gains. XRP price dropped following the news that SEC filed a lawsuit against Ripple and its top executives.

The total cap of all digital assets in circulation reached $646 billion, while an average daily trading volume came close to $200 billion. Bitcoin’s market dominance increased to 67.7%.

Bitcoin and Ethereum price analysis

Bitcoin price recovered from the low of $21,910 reached on Monday, December 21, and touched the critical resistance level of $24,000 during early Asian hours on Wednesday. However, the further upside may be limited at this stage as several technical indicators show that another bearish wave is underway. Thus, an evening star candlestick pattern combined with the sell-signal from TD Sequential indicator on the 3-day chart. If the bearish wave is confirmed, the price may retreat to $21,000 before another bullish wave begins.

In/Out of the Money Around Price (IOMAP) data suggest the price sits on top of a strong support area. Over 840,000 addresses bought 500,000 BTC from $23,100 to $23,600. If this area is cleared, the sell-off will gain traction with the next backstop below $21,000.

On the other hand, if Bitcoin manages to remain above $23,000, the upside momentum will gain traction as there are no notable resistance areas on the way up.

ETH is hovering at $610, mostly unchanged from this time on Tuesday. A sustainable move above $620 is needed for the recovery to gain traction. However, the technical indicators show that the downside correction is not over yet. TD Sequential indicator is ready to send a sell signal as the green nine candlestick is a harbinger of a potential reversal. If the bearish wave is confirmed, the price will extend the drop towards $530 (the previous channel support coupled with the daily EMA50.

On the other hand, a daily close above $620 will invalidate the immediate bearish outlook and bring new buyers into the market. In this case, Ethereum will retest the recent high of $631 and proceed with the recovery towards $800.