- After printing a low of $ 17,600, Bitcoin soared 20%.
- Meanwhile, Ethereum has surged more than 29% from its lows of $ 880.
- BTC and ETH have reached an important area of resistance after a recent rebound.
Share this article
Ethereum has taken the lead in the latest revival of the cryptocurrency market, surpassing Bitcoin. Still, there seems to be room for growth in both assets.
The rise of Bitcoin and Ethereum
Bitcoin and Ethereum, the two largest market capitalization cryptocurrencies, appear ready to recover from the recent market downturn as technological indicators turn bullish.
The crypto market has begun this week with new confidence as it has valued more than $ 100 billion in 24 hours. The sudden rise occurred after Bitcoin fell below $ 20,000 for the first time since December 2020, after Bitcoin, Ethereum, and some other assets printed a new annual low on June 18. rice field. Percentage of clearings on all major crypto derivative exchanges.
Ethereum is the highest performing asset of the top five cryptocurrencies by market capitalization in recent rallies. It traded at a low of $ 880, soaring over 29% to a local high of $ 1,140. Meanwhile, Bitcoin has skyrocketed by nearly 20% since the slide on June 18.
Despite the significant rebounds in Bitcoin and Ethereum in the last few hours, both assets could rise.
The Tom Demark (TD) sequential indicator displayed a buy signal on the Bitcoin daily chart and the Ethereum 4-day chart. The bullish formation evolved into nine red candlesticks in anticipation of the previous bullish urge. This type of technical pattern shows that one to four candlesticks are pointing up.
Bitcoin faces severe resistance of $ 21,500, according to transaction history, and previously nearly 300,000 addresses bought more than 210,000 coins. If major cryptocurrencies can break through this supply barrier, $ 23,730 will give them the power to move on to the next hurdle.
It is worth noting that Bitcoin needs to be above the $ 19,100 support level to test the optimistic outlook. Otherwise, another sellout could occur towards $ 16,000 and even $ 14,000.
Ethereum, on the other hand, needs to overcome the $ 1,200 resistance level to validate the buy signal presented by TD Sequential. If resistance in the past rises, buying pressure could skyrocket and Ethereum could reach $ 1,800. Ethereum should maintain above $ 1,000 to avoid printing lower lows. This is because a long-term decline can lead to a crash to $ 700.
Technical shows early signs of a local bottom, but macroeconomic outlooks do not support the Bulls. The Federal Reserve’s commitment to raising interest rates is of equal concern to crypto investors and global financial market participants, as rising interest rates tend to undermine asset risk. In addition, many economists have warned of a prolonged recession on the horizon, leading to mass dismissals on some of the top cryptocurrency exchanges.
The crypto market has been hit hard in the dark macro outlook, with the global cryptocurrency market capitalization at around $ 946 billion, down about 68% from its peak in November 2021. In order for Bitcoin and Ethereum to continue to recover, they need to repel fear and outperform support. If they succeed, they may have the opportunity to bring investors back to the market.
Disclosure: At the time of writing, the author of this work owned BTC and ETH.
For other key market trends, subscribe to our YouTube channel and get weekly updates from Bitcoin Lead Analyst Nathan Bachelor.