and have reached critical resistance levels after fast rebounds.
The central theses
- Bitcoin saw a nearly 17% price rally late last week.
- Likewise, Ethereum clawed back $2,000 as support after falling as low as $1,700.
- Nonetheless, BTC and ETH are now both facing a strong one Resistance opposite to.
Bitcoin and Ethereum started Friday’s trading session in a positive stance. While the technicals showed bullish signals, caution was warranted until a clear break of resistance.
Bitcoin and Ethereum Bouncing
More than $30 billion flowed into the cryptocurrency market late last week, sparking a significant recovery for most digital assets.
Bitcoin rebounded from $26,660 to regain $30,000 as support. The sudden rebound came as a surprise to many as investors remain fearful of the stability of the stablecoin-Market to Terra. Nevertheless, the flagshipcryptocurrency to be positioned for further gains.
The Tom DeMark (TD) Sequential indicator is showing a buy signal on the daily chart of Bitcoin. The bullish formation developed as a red nine-candle, indicating an upleg of one to four candles per day.
To confirm the bullish outlook, BTC needs to break the $31,225 resistance level.
Breaking such a critical resistance area could encourage marginalized investors to re-enter the market and propel Bitcoin into the next interest rate zone near $35,000.
Source: TradingViewEthereum also seemed primed for a bullish impulse after it reversed at the $1,700 support level. The second largest cryptocurrency after market capitalization gained almost 450 points late last week with the TD Sequential expecting more upside. This technical indicator flashed a buy signal on the daily chart of ETH after reaching oversold conditions.
It is worth noting that the $2,260-$2,500 price range would likely serve as a rigid resistance level for Bitcoin and Ethereum. Although the technicals point to more gains, ETH needs to clear this level to confirm the optimistic outlook. If successful, ETH could surge to $2,700 or even $3,000.
Source: TradingViewWhile the cryptocurrency market appeared to be gathering momentum for a recovery rally, it is imperative to understand that Terra’s death spiral has generated much uncertainty and its implications may not yet be fully understood.
Market participants could be encouraged to use a potential rally to exit some of their positions as fear spreads. A significant increase in selling pressure could expose cryptos to another downturn.
Source: Crypto News Deutsch