On Friday, Bitcoin and other cryptocurrencies rebounded, correcting recent losses. Alternative cryptocurrencies (altcoins) outperformed, with ether (ETH), the world’s second-largest cryptocurrency, rising 13% in the last 24 hours compared to an 11% growth in Bitcoin.
The recent surprise price movement in the market has resulted in some good shifts in mood. Even so, many experts remain wary due to macroeconomic uncertainties. We examine the holders’ actions throughout the recent pullback to $32,900 and explore the key technical confirmations for a mid-term trend reversal.
Bitcoin (BTC)- Even most experts feel that a price consolidation below the weekly Ichimoku cloud marks the end of the bitcoin bull run and that it will be difficult to regain historic highs in the near run. Two weeks ago, a weekly candlestick closed beneath the cloud. Then came the rally, which made it impossible for the price to hold below the cloud for longer.
As a result, the unpredictability concerning the positive momentum persists. The price is now battling the Kijensen, which commonly acts as opposition. Nonetheless, a break over this dynamic resistance $43,000 critical level might provide a favorable signal to market technical traders/analysts.
The latest candlesticks reveal the fragility of the day before’s surprising advance. The bears tend to weaken upward developments, while the bulls prefer to strengthen retraction zones. Crossing this zone and setting a higher high is typically interpreted as indicating the reversal of a downtrend. Given the market structure, it took bitcoin 14 days to retake the $41,300 level. When the proportion of supply-in-profit is examined, just 6% of supply changes hands throughout this correction down to $32,900.
This minor shift in the proportion indicates that the holding incentive has lately dominated. This finding, especially compared to many previous similar occurrences, can indicate that the market’s illiquid supply is unlikely to be allocated to exchanges due to short-term volatility. To put it another way, long-term investors’ identities have shifted dramatically over this cycle.
Ethereum (ETH)- Has surpassed $3,000 and looks to be on the verge of breaking out of its short-term slump. According to the technical chart, this occurs less than two weeks after the market hit a low of $2,160.
Today, after a solid two-day rise, the price broke above the major barrier level of $3,000 for the first time. Assuming it can convert this level to support (retest and confirm), the remarkable recovery might stretch much farther. Furthermore, if the price dips further, there is considerable support at $2,800. In the grand scheme of things, The price level must break beyond the key barrier of $3,400 in order to set a new daily high. The first indication of a clear bullish turnaround would be that.
Six green candles in the last week have driven Ethereum higher due to the huge volume. Buyers are now in possession. The daily RSI has risen over 50 points, indicating that both the high and low points have risen. This is a big turnaround, and there is still lots of room to go much greater. The daily MACD is bullish, and momentum has increased in the last two days, as seen by the histogram and climbing moving averages. The overall tendency is optimistic.
Ethereum is currently confronted with two critical challenges. The very first phase is to validate and turn the $3,000 breakout into support. The second attempt to break through $3,400, would mark a substantial mid-term trend reversal. Although the present momentum supports this scenario, bears may always reclaim major resistance levels. Be cautious and keep an eye on the $2800 – $3000 support zone.
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