Bitcoin has made some significant gains in the last 3 days, and has broken above the psychological $7000 value. In the day, Bitcoin is up by 10%, and is trading above $7400. Can it break above $7500, and gain the momentum to test $8000?
Well, that depends on the volumes. At the moment, Bitcoin is trading below major moving averages across all major charts. In the weekly charts, the 55-day moving average is a significant resistance level at $7700.
A similar scenario is clear in the day charts where the 100-day moving average is a key resistance level at the $7600 price level. Looking at the bitcoin intra-day charts, it is clear that it is losing steam below the 200-day moving average at $7600.
This goes to show that bitcoin (BTC) is at a point where it could either break out in a long-term bull rally or reverse and retest its recent lows of $5800 – $6200. The key thing that will determine direction at this point is the volumes. If volumes continue to rise, bitcoin (BTC) could break above the $7500 – $7700 range. However, if volumes drop, the price could drop too and retest the last support level at $6000.
Like bitcoin (BTC), Ethereum (ETH) is trading below key resistance levels, across all charts. Looking at the weekly charts, Ethereum is trading below the 55-day moving average at $526.
Similarly, it is trading below the 55-day moving average, and the 100-day moving average in intra-day trading. This shows that there is significant pressure around the $500 – $550 price level. This means that at this point, investors should be watching out for the volumes of Ethereum.
If volumes surge as they did in the last 2 days, then there is a good chance that it will break above this price range, and retest its recent high of $800. On the flip side, if volumes decline, Ethereum (ETH) could drop back to $400 – $420.
In intra-day trading, Ethereum seems to have lost its upside momentum along the 100-day moving average and is headed lower. Volumes have declined too, indicating that a price drop could be imminent. However, it’s still early to determine that, and it will also depend on the price of bitcoin (BTC) since it is still the dominant cryptocurrency in the market.
Ethereum Classic (ETC)
In the week, Ethereum Classic (ETC) is facing some resistance at $19 along the 55-day moving average. However, in the day, it has risen above the 100-day moving average, breaking away from the trend of the other cryptos that are trading below major moving averages.
This is a sign that the positive momentum around Ethereum Classic (ETC) is growing following the upcoming Coinbase listing. If this momentum continues, Ethereum Classic (ETC) will test 21 along the 200-day moving average.
At this point, it is the only crypto that is trading independently of the rest of the market. It is likely to continue gaining until Coinbase makes the official announcement that it’s ready for trading.