Does Ethereum rally signal next phase of Bitcoin bull market above $ 50,000?


Bitcoin (BTC) saw some consolidation below $ 50,000 as a psychological barrier. However, during this pullback, several large altcoins have increased in price, suggesting that the alt season is not over yet.

Meanwhile, the price of Bitcoin faces crucial resistance to break through, while Ether (ETH) is already breaking through that resistance, hitting a three-month high against BTC and facing a race to the next resistance around the. highest historical.

The main question now is whether this Ether breakout is a signal for Bitcoin to follow suit and break through resistance barriers in September. Historically, September has been a corrective month, which means that such a breakout may come as a surprise to many traders.

Critical resistance zone at $ 51,000 to cross for Bitcoin

1 day BTC / USDT chart. Source: TradingView

Bitcoin’s daily chart shows a consolidation between $ 44,000 and $ 50,000. This consolidation has resulted in a strong breakthrough for altcoins in the markets, with some having already broken their previous all-time highs.

Resistance is pretty clear for Bitcoin. If BTC can break this resistance, a large impulse move is likely, comparable to the breakout above $ 6,000 in the first phase of this cycle.

The bearish divergence on the chart will only be confirmed when the recent low is invalidated and broken lower. At this point, the uptrend is officially reversed.

Currently, the market is consolidating after rallying from BTC July lows. In other words, the bearish divergence remains unconfirmed until Bitcoin loses the lower limit of the support range, which can be found at $ 44,000.

Total market capitalization targets new highs

1-day total crypto market capitalization chart. Source: TradingView

The total market cap of the cryptocurrency shows a bullish continuation with constant lows and highs.

The crucial breaker for market cap to break through is the resistance zone of around $ 2.12 trillion. Once this breaks, more of the upside is likely to head to new all-time highs. This structure could also foreshadow Bitcoin’s price trajectory, as this chart currently shows even more bullish behavior than BTC / USD.

Ether breaks key level of $ 3,400

ETH / USD 1 day chart. Source: TradingView

The daily chart for Ether shows a breakout above the crucial breaker at $ 3,400. This is a signal of strength for the entire market. The difference between Bitcoin and Ether right now is that ETH is hitting higher highs, while Bitcoin remains in a side range.

In this chart, the critical breaker for the aether is the previous resistance zone at $ 3,400. As long as this maintains support, a continuation of all-time highs becomes more and more likely.

However, if a breakdown below $ 3,400 occurs, a potential bearish divergence kicks in, causing a correction to $ 2,600. Such a correction would also affect Bitcoin, which also has a few critical levels to watch as support.

Crucial Levels To Watch For Bitcoin

4 hour BTC / USD chart. Source: TradingView

The chart for Bitcoin shows a slight downtrend from the recent high at $ 50,300. However, the chart also shows strong support at $ 46,400 which could prevent any further decline to $ 44,000 and below.

Such a correction could hurt the markets and push the entire market down to lower levels, which could mean Ether could drop below $ 3,400.

On the flip side, if Bitcoin stays in that range between $ 44,000 and $ 51,000 (on lower timeframes, $ 46,400 is also a critical level), altcoin rally conditions will only get better.

Until Bitcoin does not go vertical or have a strong surge of momentum, altcoins are in a good position to outperform BTC in the short term, and that is what the market is seeing right now.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move comes with risk, you should do your own research before making a decision.

Source link

Leave A Reply

Your email address will not be published.