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Bitcoin (BTC) and Ethereum (ETH) Setting Up For The Next Leg Higher

Bitcoin (BTC) and Ethereum (ETH) Setting Up For The Next Leg Higher

Nick Cawley, Strategist
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Bitcoin (BTC), Ethereum (ETH) and Alt-Coins - Prices, Charts, and Analysis

  • Bullish trend support creaking as Bitcoin and Ethereum consolidate.
  • Alt-coins remain in favor after weeks of grinding higher.

Both Bitcoin and Ethereum are struggling to hold onto the bullish trend channel we have been highlighting for the past few months but this does not mean that they cannot continue to move higher, just that the recent velocity of the two main cryptos may slow down in the short-term. Both charts remain positive and a period of sideways to gently higher price action may make the longer-term outlook for both more attractive by continuing to push the CCI indicator away from overbought to oversold territory. Bitcoin is still looking likely to press back to its recent ATH soon, with any short-term sell-off expected to find initial support around $59.5k

Bitcoin (BTC/USD) Daily Price Chart – November 5, 2021

Bitcoin (BTC) and Ethereum (ETH) Setting Up For The Next Leg Higher

Ethereum continues to press higher and remains in price discovery mode. As with Bitcoin, trend support is coming under constant pressure and ETH may well consolidate over the next few days to try and normalize the CCI indicator which remains, just, in overbought territory. Initial support at the prior high of $4,379 may not prove overly robust ahead of a supportive $4,025-$4,150. The latter zone should hold any short-term sell-off. As with Bitcoin, the overall positive trend remains.

Ethereum (ETH/USD) Daily Price Chart – November 5, 2021

Bitcoin (BTC) and Ethereum (ETH) Setting Up For The Next Leg Higher

The alt-coin market, measured here by total crypto market cap minus Bitcoin’s market cap, continues to grow and in contrast to both BTC and ETH is pressing against trend resistance, not support. In the last six weeks, the alt-coin market cap has grown by over $500 billion, an increase of over 50%. This growth is set to continue with a large enough trend channel to allow for a 10% sell-off before the bullish trend comes under pressure.

Crypto Total Market Cap Minus Bitcoin – November 5, 2021

Bitcoin (BTC) and Ethereum (ETH) Setting Up For The Next Leg Higher

Chart by TradingView.

What is your view on Bitcoin (BTC) andEthereum (ETH) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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