Crypto Update: BTC/USD, ETH/USD Building Momentum Within Shy Distance of ATH
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Key Talking Points:
- Digital currencies continue to attract speculative interest
- Both Bitcoin and Ethereum consolidate momentum to attempt a new run at all-time highs
It’s been a rosy path for Bitcoin since the beginning of the year and the most traded cryptocurrency doesn’t seem ready to stop yet. Valuations for the virtual coin continue calling for its price to double before the end of the year, and Bitcoin buyers seem to be pretty happy to hold on for the meantime. BTC/USD continues to be in a strong position to capitalize on further upside, although some caution must be taken until its price is able to push above the all-time high seen last weekend.
Buyers must also pay attention to potential price diversion around the 60,000 mark given how this area has proven to be tricky to overcome, with bullish momentum being halted there just yesterday. Today’s candlestick is painting a picture of indecision so far, so expect further bearish pressure if price falls below the intraday low of 56,294.
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But if we look at momentum indicators we can see further buying pressure can arise before Bitcoin is looking overbought given the pullback seen on Monday, so we may see it push higher again before a correction is due, at which point I wouldn’t be surprised if sellers attempt to break below 50,000. But at the end of the day, the overall picture is that we have an asset that is printing higher highs and is in a clear uptrend, so any pullbacks are likely to be seen as a good opportunity to buy and bring the price higher again.
BTC/USD Daily chart
This uptrend is evident in the cryptocurrency as a whole, and Ethereum is following the rise in Bitcoin very closely. ETH/USD is also trading just shy of its all-time high and although traders are likely eager to get the coin above the $2,000 mark, its ability to consolidate is proving that the pair is able to gather the momentum needed to push higher.
The current price is hovering just above the ascending trendline since the end of February, so if momentum can hold above this area then technical buyers might be enticed to step in. Alternatively, if momentum doesn’t hold, I would look at the 100 and 200-day moving average (1,722) for an area of support, and given how they have just staged a bullish cross, we could see price bounce back up from here.
ETH/USD Daily Chart
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--- Written by Daniela Sabin Hathorn, Market Analyst
Follow Daniela on Twitter @HathornSabin
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.