Bitcoin marches on
BTC / USD is trading above USD 54,800 as it approaches the central levels mentioned in Monday’s newsletter. The general thesis remains the same: Bitcoin must overcome these pockets of liquidity before new all-time highs can be printed. A critical daily close above $ 58,000 confirms a high probability move above $ 64,000 towards $ 70,000.
Even so, there isn’t a huge rush to BTC / USD trading until the above conditions are met. In fact, Bitcoin is still technically testing high timeframe support turned resistance.
If the bears are right – which I don’t think is right for a moment – they first sign a fake recovery would be a drop below $ 52,000 printed on the 4-hour list. If so, the bullish picture would be shifted and the 20-week EMA would once again have great significance for bulls seeking high time frame support.
For the uninitiated, support and resistance levels (s / r) are not magical arbitrary lines. They are meaningful levels because the market dictates it. Leftover buy / sell orders, derivatives, options and futures as well as forced liquidations make these levels important. S / R levels are a description of probable and consistent market behavior. As such, they are neither static nor absolute, but evolve over time.
But I digress.
No brakes on the ether train
Meanwhile, ETH / USD is tirelessly pushing for the measured price target of USD 2,883.
The pair has been essentially immune to Bitcoin-led weakness and nothing has really changed since Monday, aside from bullish news from the European Investment Bank. Various articles have appeared trying to relate the ETH / USD price action to this news, which may in part be true. But as any seasoned analyst worth their salt will tell you, show me the charts and I’ll tell you the news.
With the increasing wave of investor strength, the ETH / BTC is aiming for the level of 0.05 targets, which will pave the way to 0.055 pa when conquered.
A total of, Ethereum is bullishand that in the long term ETH / BTC chart is proof of that.
I’ll see you next time.