Ethereum leading the way and showing Altcoin strength could pave the way for some serious pumpage
- Bitcoin/USD – Bull Run Over or Buy the Dip?
- Ethereum/USD – ETH Leading the Way
- Ethereum/Bitcoin – ETH/BTC Showing Altcoin Strength
BTC Daily Chart
BTC Weekly Chart
In last week’s article we talked about the Bitcoin monthly close and how important it was for Bitcoin to close over the $58.8k level. That resistance level was never reclaimed and because of the failed breakout, Bitcoin’s price decreased from about twenty percent from a high of $53.8K to $42.3k in a single day. BTC/USD price has since recovered to a price of about $51k at the time of writing. Since the Bitcoin nuke, there has been a lot of talk about if the bull market is still in full swing or if we are in the beginning stages of the next bear market. While nobody is 100% sure of what will happen, I recommend playing this market level by level.
Bitcoin Bull Scenario
Bitcoin maintains support over at least $50k must hold area where it currently is and then reclaims the $53k level next.
Bitcoin Bear Scenario
Bitcoin loses the daily support level of $50k, and then we look for the $46k level to hold. In my opinion, $50k is a very important must-hold area for bulls to remain in control.
ETH Daily Chart
ETH Weekly Chart
While Bitcoin’s price nuke did affect Ethereum’s price, Ethereum was able to recover from the lows a lot faster than Bitcoin, and the king of altcoins has been leading the way. ETH/USD fell to the daily support level of $3.6k before recovering back to its weekly support at $4k. At the time of writing, Ethereum is priced at about $4.3k. The price action that ETH is showing and the way that it has recovered from the nuke is a hint that the market will be more altcoin focused in the coming weeks in my opinion.
Ethereum Bull Scenario
Ethereum reclaims the $4.3k level on the daily time frame and then pushes for new ATH’s.
Ethereum Bear Scenario
Ethereum loses the $4.3k level and the next level that I would anticipate as support would be the $4k level.
ETH/BTC Daily Chart
ETH/BTC Weekly Chart
As we discussed in some of our previous articles in the past, ETH/BTC tends to be a great indicator for altcoin strength. I thought it was particularly important to mention this chart this week because of the range that ETH/BTC is currently attempting to break out of. Since May of this year, the pair has been stuck in a range low of 0.06 – 0.08. If ETH/BTC can manage to break and hold over the level of 0.085 where it currently is, the next logical target is 0.10 BTC, and I would expect a huge increase in ETH price and the rest of the altcoin market.
ETH/BTC Bull Scenario
Ethereum maintains over the 0.079 BTC level on the daily time frame and then turns the 0.085 BTC resistance into support on a weekly closing basis.
ETH/BTC Bear Scenario
Ethereum loses the 0.079 level and the next level that I would anticipate as support would be the 0.068 level.