Bitcoin and Ethereum have entered price discovery mode.
Further buying pressure could push BTC to nearly $75,000.
Likewise, ETH might rise to $9,350 if buy orders continue to pile up.
Share this article
Bitcoin and Ethereum appear to have entered a new leg up after breaching previous all-time highs. Although market participants could be getting too optimistic, these cryptocurrencies may still have plenty of room to advance further.
Bitcoin Resumes Uptrend
Bitcoin made a new all-time high at $68,540 as it appears to have entered a new leg up.
The flagship cryptocurrency kicked off the week of Nov. 8 on a positive note. Since Monday’s open, BTC has surged by more than 8% to reach a new record high, gaining more than 5,210 points in market value.
From a technical perspective, Bitcoin appears to be contained within an ascending parallel channel on its daily chart since Jul. 20.
Every time BTC has risen to this technical formation’s upper boundary since then, the uptrend has reached exhaustion, leading the price to retrace to the pattern’s middle or lower edge. From this point, the pioneer cryptocurrency tends to rebound, which is consistent with the characteristics of a parallel channel.
Now that Bitcoin has rebounded from the channel’s middle trendline, it is not unreasonable to guess that it is heading towards its upper boundary. Such a bullish price action projects that BTC could gain another 9% in market value to hit $74,730 before the next correction takes place.
It is worth noting that some argue that cryptocurrency enthusiasts have entered a state of “extreme greed” as Bitcoin has gone into price discovery mode. Such market sentiment is not necessarily a good sign for the continuation of the uptrend.
It is imperative to pay close attention to the $64,900 support because any signs of weakness at this level could result in a correction towards $57,2000.
Ethereum Looks Unstoppable
Ethereum made a record high of $4,845 before Bitcoin entered price discovery mode, which suggests ETH is leading the most recent run-up.
The second-largest cryptocurrency by market cap has gained over 200 points since Monday’s open. Although the $5,000 psychological resistance level might serve as a price point for many traders to realize profits, ETH faces little to no discernable opposition ahead.
The formation of a cup and handle pattern on Ether’s daily chart projects further upside potential. The distance between the bottom of the cup and the pattern’s breakout level indicates that Ethereum has another 93% gains to meet the bullish target of $9,350.
Given the current market sentiment, it is imperative to consider the downside potential to avoid getting shaken out. The $4,000 level can be thought of as a strong foothold for Ethereum. Only a breach of this support barrier can lead to significant losses as the next interest area sits around $3,000.
Disclosure: At the time of writing, the author of this feature owned BTC and ETH.
This news was brought to you by Phemex, our preferred Derivatives Partner.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Crypto Market Hits $3 Trillion Market Cap as Bitcoin, Ethereum Head No…
The cryptocurrency market has kicked off the week with a bang. Ethereum appears to be leading the recent run-up among the top cryptos, but Bitcoin could soon catch up as…
Ethereum Name Service Market Cap Tops $570M Following Airdrop
Dedicated Ethereum users were rewarded with another airdrop courtesy of Ethereum Name Service yesterday. ENS tokens are currently trading at just below $50 today following an overnight rally. Ethereum Name…
MDEX: Overlooked Decentralized Exchange That Pays You to Trade
Based on statistics from DeBank and dapp.com, one of the top-performing decentralized exchanges by TVL and trading volume this year is MDEX—an AMM-based DEX functioning across the Huobi Eco-chain (HECO), Binance Smart Chain…
Modern Portfolio Theory and the Efficient Crypto Portfolio
While all investing carries some risk, that doesn’t mean all risk is created equal. Learn how to optimize your portfolio weighting for the best risk-adjusted returns using modern portfolio theory…