Bitcoin Gearing Up for Next Leg Above $69K, Ethereum Eyes $4K: Key Trading Levels
Investing.com | Mar 08, 2024 22:10
- Bitcoin faced selling pressure after attempting to break $69,000, dropping to $59,000, losing momentum.
- Ethereum outperformed, aiming for $4,000 despite resistance at $3,975.
- Both cryptocurrencies face critical resistance, potential profit-taking due to overbought conditions.
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Bitcoin started the first half of this week with positive momentum, but faced a quick selling pressure as it tried to break through the previous record high of $69K.
The selling pushed the cryptocurrency down to the $59,000 band. While that did not cause a trend change, it did cause a loss of momentum in the cryptocurrency's mid-term upward trajectory.
Against this backdrop, Ethereum recovered better than Bitcoin in this week's pullback and returned to its uptrend and continued its movement towards the $4,000 band.
h2 Daily Chart Insights/h2Bitcoin saw a sharp reversal after a bounce early last week, but managed to maintain its upward momentum as large investors saw the week's lows as a buying opportunity. After the volatility at the start of the week, the crypto saw its trading zone rise above $65,000.
When we look at Bitcoin's partial retracement in January, the resistance at the $ 69,000 limit in the 2024 trend this week attracted attention. This point corresponded to Fib 3,618 according to the last correction, indicating a meaningful reaction according to Fibonacci levels.
From here, we see that the first resistance for BTC at the average level of $ 68,975. If this price is broken in the coming days with daily closes or hourly volume purchases, we can see that the cryptocurrency's new ATH level will be in the $ 74,000 band, corresponding to Fib 4,236.
On the daily chart, the Stochastic RSI indicator also started to signal a correction with a loss of momentum from the sideways trend in the second half of last week. In order for the assumption that the correction occurred quickly in Tuesday's pullback to be valid, it is extremely important for Bitcoin to step into the $ 69,000 band.
If this rise occurs, we will see that the Stochastic RSI will also turn up again and give a bullish signal.
h2 1-Hour Chart Insights/h2The rising channel movement that we follow on the hourly chart, which is a shorter-term perspective, also points to similar price targets for Bitcoin.
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The trading range narrowed after the volatility at the beginning of the week, while the cryptocurrency finally encountered resistance at the midline of the short-term rising channel. Selling from this resistance, which corresponds to an average of $67,600, has continued to find support in the lower band of the channel for the last 48 hours.
This outlook points to an ascending triangle with a price squeeze that could take Bitcoin to the $70,000 area, coinciding with the midline of the channel.
We could then see an acceleration towards the upper band of the channel, depending on the buying volume within the channel, which has been followed since February 28. This would be in line with the $74,000 zone, which we follow as a target on the daily chart.
In the lower region, a few support points close to each other stand out.
First, the lower band of the channel, which corresponds to approximately $ 67,000, stands as the closest support, while hourly closes below this price level may cause a loss of momentum on the upward path. Then, the 8-day EMA, which has been working as dynamic support since February, may come into play as a second support at the average level of $ 64,000.
If these supports are lost in a possible pullback, we could see a test of the trend line up to the $59,000-$60,500 range.
h2 Can Ethereum Break Through the $4,000 Band?/h2Ethereum first broke its medium-term ascending channel upwards in February. Then, in the shorter term, it accelerated its rise by moving above the channel it continued by increasing its momentum.
Currently, the world's second-largest cryptocurrency is in the process of testing resistance at $3,975 ahead of $4,000. This price level corresponds to Fib 0.786 according to the last peak and bottom price, marking a critical point.
If Ethereum can see a weekly close in the region of $ 4,000 above this value in the coming days, the next move is likely to be towards the record level of $ 4,800. However, there may be fatigue on the buyer side of the cryptocurrency, which has been rising steeply for the last 5 weeks. This stands as the biggest obstacle to persistence in the $ 4,000 band.
While the Stochastic RSI, which has risen above 80 on the weekly chart, reflects overbought conditions, the profit-taking that may occur if the resistance level cannot be broken may cause the cryptocurrency to retreat towards the $3,300 - $3,500 levels.
Support from this point will be a catalyst for the trend to move stronger. Positive expectations for the Ethereum network and the increase in trade volume keep the demand for cryptocurrency alive. However, it should not be ignored that some profit sales may come, especially with the realization of the first expectation after the Dencun update.
If we look at Ethereum on the hourly chart; The upper band of the channel reflects resistance at the level of $ 3,975 - 4,050 in line with the daily outlook. The closest support is the middle band of the channel corresponding to $ 3,800. The $3,700 limit can be followed as a second intermediate support with the lower line of the rising channel in the hourly view.
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