BOTS crypto news week 19
Because Bitcoin has not been very volatile in recent months, Ethereum and many other altcoins can make moves against Bitcoin. Ethereum in particular has shown its strength in recent weeks and is gaining a lot of ground against Bitcoin. In my article "The Future of Ethereum" I already expressed the expectation that this would happen. When can Bitcoin take the lead again many people wonder. I'll discuss that in this weekly update.
By: Steven Eblé
Bitcoin price development has not been very spectacular in recent months. Bitcoin has been in an accumulation range between 63,000 and 45,000 US dollars for almost 3 months.
Bitcoin accumulating after the massive impulse wave up from $ 12,000 to more than $ 60,000 is perfectly normal and healthy. But how long can Bitcoin remain in this range? And what does it technically look like for Bitcoin?
The graph below shows that Bitcoin broke out of a falling wedge 2 weeks ago. This was followed by 2 tests of the upper support level, after which the trend continued.
It is difficult to say what Bitcoin could do in the short term. I do know from experience that less volatile periods of Bitcoin are followed by extreme volatility. If you look at how long Bitcoin has been ranking, it seems likely to me that volatility could return in the coming weeks for Bitcoin.
The 4 hour time frame shows that a kind of ascending triangle has formed. If this little pattern breaks up, I expect the all time highs to be tested. A downbreak would mean further consolidation.
Below we see Bitcoin on the weekly time frame. This time frame reveals multiple signals that could indicate that the next Bitcoin outbreak may well be up. Bitcoin makes constant higher lows, while the rsi makes lower lows. This is called hidden bullish divergence. Hidden bullish divergence signals continuation of the uptrend.
Ethereum has gone completely parabolic in recent weeks. Four weeks ago I already indicated that if support were to hold up around USD 2,000, the trend would be likely to continue. At the time, I set the price targets at USD 2,500 and USD 3,000, both of which have been reached.
For Ethereum, it is very difficult at this point to say anything about what the price will do in the short term. Ethereum may rise even further, but there are no technical indicators to support this. To set further price targets we have to look at the Eth / btc chart.
Last week I indicated that if the measured move of the accumulation range were hit, 1 ether could become USD 3,700 at a bitcoin price of USD 56,000. A week later and Ethereum has also reached this target.
I expect Ethereum to cool down a bit in the coming weeks. Mid and low cap altcoins can then make runs in their bitcoin pairs, after which bitcoin volatility will most likely return.
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