Will BTC and ETH Prices Recover After Unexpected 24-Hour Correction?

Bitcoin (BTC) plunged as low as $60,600 on April 13 after a war between Iran and Israel escalated on April 13. According to reports, Iran had attacked Israel for the first time in history, leading prices of assets in the crypto markets, and beyond to plummet.

Ethereum (ETH), the second most valuable cryptocurrency was not left out of the onslaught as its price crashed to $2.852. While it did not take long for the prices to bounce, traders already felt the heat as liquidations were as high as $711 million within four hours, Wu Blockchain reported.

As Iran attacked Israel for the first time in history, risk assets fell sharply. Ethereum fell to as low as $2,852 in the past 4h, and Bitcoin fell to as low as $60,660. The liquidation amount reached $711 million within 4h. But Iran subsequently announced the end of military… pic.twitter.com/ahNUdz8RCl

— Wu Blockchain (@WuBlockchain) April 13, 2024

Despite the correction, analyst Benjamin Cowen mentioned that the dips are normal. Cowen, however, opined that the correction might not be over as BTC could hit $50,000 if history were to repeat itself.

Bitcoin (BTC)

According to the 4-hour BTC/USD chart, the downturn was not yet over. This was shown by the Moving Average Convergence Divergence (MACD). At press time, the MACD was negative, suggesting a bearish momentum.

Besides that, the 12 EMA (blue) had slipped below the 26 EMA (orange), indicating that sellers had overpowered buyers despite the bounce. Should this continue, Bitcoin might drop below $64,000 again.

BTC/USD 4-Hour Chart (Source: TradingView)

If this is the case, BTC’s next target could be around $63,567 which was its underlying support. A bounce above this level could send the coin toward $67,722 if buying pressure increases. However, the RSI revealed that Bitcoin’s momentum was weak, meaning that a rebound toward $67,000 could be unlikely in the short term.

Ethereum (ETH)

From the chart below, the RSI showed that ETH was oversold, and bulls were trying to pump the price. However, it seemed like the altcoin lacked the required firepower to set up a bullish momentum as the reading remained far below 50.00.

If buying pressure increases, ETH could rise to $3,275 in the short term. The Bollinger Bands (BB) backed this prediction as it also showed that the cryptocurrency was oversold. Beyond that, the BB showed that volatility around ETH had increased, indicating that there could be high price fluctuations.

ETH/USD 4-Hour Chart (Source: TradingView)

In a highly bullish case, ETH might jump to $3,712. On the other hand, failure to increase buying pressure could stall the price action and the cryptocurrency might keep moving between $3,080, and $3,275.

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