BTC/USD, ETH/USD Price Analysis:
- Bitcoin rebounds off of key psychological level
- Etherprice action remains within rising channel
- Large corporations continue to drive demand for major cryptocurrencies
Bitcoin and Ethereum prices have soared in recent weeks, buoyed by rising demand for major cryptocurrencies and US Dollar weakness, with recent price action demonstrating ‘safe-haven’ characteristics of what would usually show in Gold and Silver, but have suspiciously been absent of late. However, unlike the precious metals who have faltered even with a return of USD-weakness, investors appear to be attracted to digital currencies amid increased speculation that large market players will adopt Bitcoin as an alternative payment method, driving BTC/USD above the key psychological level of $50,000, resulting in a new all-time high of$52,648, an advance of more than 58% over the past month.
Bitcoin (BTC/USD) Technical Analysis
After retracing from yet another all-time high yesterday, the formation of a Doji candle, followed by a series of shallow candles suggests that the strong upward trajectory that has prevailed since last year, may be slowing down, with short-term price action stuck in a range between the recent high and the psychological level of $50,000. These markets have helped to define support and resistance for BTC/USD, with the 50 period Moving Average providing additional support at $48,290. Meanwhile, the Commodity Channel index (CCI) continues to test the upper bound of 100, currently resting just below, with a current reading of 82.
Bitcoin (BTC/USD) 4 Hour Chart
Chart prepared by Tammy Da Costa, IG
Ether (ETH/USD) Technical Analysis
Ethereum continues to follow in Bitcoin’s footsteps, with bulls driving price action to produce a series of fresh highs. For now, prices remain within the confines of the rising channel, looking to test the key psychological level of $2,000 for the first time ever. Would an initial inflection here be met with sellers? Or will the bullish enthusiasm that’s continued to drive allow for a clean breakout beyond the psychological level? Meanwhile, the CCI remains above 100, potentially indicating that the second biggest cryptocurrency may be treading in overbought territory.
Ethereum (ETH/USD) 4 Hour Chart
Chart prepared by Tammy Da Costa, IG
--- Written by Tammy Da Costa, Market Writer for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
