Bitcoin (BTC) Grinding Slowly Higher, Ethereum (ETH) Outperforms
- Bitcoin continues to build a short-term base.
- Ethereum/Bitcoin spread moving higher again.
Bitcoin is stuck in the middle of a short-term box structure as buyers and sellers battle to get the upper hand. In the last two weeks, any sharp sell-off has been gradually pulled back with the 200-day simple moving average acting as support and providing a springboard for a move higher. The slope on the 200-day sma is just tilting higher and if this remains the case then Bitcoin will continue to edge back towards $50k. The chart is showing mixed technical signals with a short-term series of lower highs now meeting this week’s run of higher lows, suggesting that a breakout is imminent. There is also a bullish divergence growing between the CCI moving higher while the price of Bitcoin has fallen since the start of the month. Further sideways price action is expected in the coming days but a breakout cannot be ruled out.
Bitcoin (BTC/USD) Daily Price Chart – December 16, 2021
The sharp move higher in the Ethereum/Bitcoin spread is consolidating today above two levels of resistance that turned into support recently. The move higher is being driven by Ethereum outperformance and as long as the pair do not close and open below 794, then this move looks likely to continue. All three simple moving averages are currently adding support to the move, leaving 860 and 884 as the next level of resistance.
Ethereum/Bitcoin Spread Daily Price Chart December 16, 2021
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