Bitcoin marches on
BTC/USD trades above $54,800 as it inches closer to pivotal levels mentioned in Monday’s newsletter. The general thesis remains the same: bitcoin needs to overcome these pockets of liquidity before printing new all-time highs. A decisive daily close above $58,000 gives credence to a high-probability move above $64,000 and towards $70,000.
Still, there’s no major rush to pile into the BTC/USD trade so long as the above conditions are not met. In fact, Bitcoin is technically still re-testing high time-frame support-turned-resistance.
If the bears are correct — which I don’t for a moment think that they are — the first sign of a fake recovery would be a drop below $52,000, printed on the 4-hourly. In this case, the bullish picture would be postponed, and the 20-weekly EMA would once again bear a lot of significance for bulls looking for high-time-frame support.
For the uninitiated, support and resistance (s/r) levels are not magical arbitrary lines. They are meaningful levels because the market dictates that they are. Left-over spot buy/sell orders, derivatives, options, and futures, and forced liquidations make these levels important. S/R levels are a description of probable & consequential market behaviour. As such, they are neither static nor absolute but evolving with time.
But I digress.
No brakes on the Ether train
Meanwhile, ETH/USD is relentlessly pushing higher towards the measured move price target of $2,883.
The pair has been essentially immune to Bitcoin-led weakness, and nothing has really changed since Monday aside from bullish news hailing from the European Investment Bank. Various articles have emerged attempting to connect ETH/USD price-action to this news, which might be partly true. But as any seasoned analyst worth his salt will tell you, show me the charts, and I’ll tell you the news.
As this wave of investor strength intensifies, ETH/BTC targets the ₿0.05 level, which, if conquered, will pave the way to ₿0.055.
All in all, Ethereum is bullish, and this long-term ETH/BTC chart is a testament to that.
Catch you next time.