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Bitcoin & Ethereum Market Analysis – 04.01.2021

It’s being an exciting weekend of unbelievable ride as Bitcoin price hit a fresh landmark of $34,400 on January 3rd. The new-year has kicked off to a flying start for hodlers as the capital inflows has gone nuts.

Meanwhile, Bitcoin remains on an upward trajectory of price discovery, hitting new record highs on a daily basis. With a purported supply shortage and an institutional buying frenzy now spilling over into retail, the rally may still have a lot more room to run with $35,000 likely being the next psychological level to break.

The price of Bitcoin surpassed $34,000k, propelling Ethereum to break past $1000 after a strong overnight rally. ETH is making serious inroads in both BTC and USD terms in what I see, as a classic sign that Altcoins are coming back from the dead. What is playing out is signaling that, Altcoins may be about to see huge gains.

Considering the high level of institutional demand for Bitcoin since the 3rd quarter of 2020, the demand could also boost Ether upon the listing, surpassing the previous all-time high of $1,400 in few weeks to come.

From the daily chart, BTC rally has been sharp and that has pushed the relative strength index (RSI) deep into overbought territory. The parabolic forming shows increasing momentum pulling four green candles in a row. So for now, let’s keep watching the EMA 8 and move our stop loss to $28,000 being the new support.

  Fig.1.Bitcoin: Move stop loss to area support level at $28,000.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live

Looking at the weekly chart, we have solid accumulation of volume with RSI at 93. I don’t know what’s going to happen, whether it will continue or there will be a correction to $20k to even $15k. I have been following the trend and I have looked for sign of weakening, I couldn’t see one.

Fig2. Bitcoin::Solid accumulation of volume with RSI at 93 on weekly chart. Source: bitcoin.live

The EMA 8 support remains intact and the uptrend is as strong as ever. Let’s keep it simple and stick with our plan of buying dips until proven otherwise.

Ethereum

Looking at ETH/USD, it has been incredibly strong. What we have, is a long candle, high acceleration and excellent volume on the break. The ascending triangle on the break-out is showing strong bullish momentum that could go on for a long time. Not only did it reach the measured move from that ascending triangle, it surpassed the much anticipated target of $800 that we scouted out from months ago.

ETH/USD is approaching landmark price levels of its own, taking aim at $1,000 on the back of 21% daily gains. The last time that the pair traded at four figures was in January 2018.

Fig.3 Ethereum: The EMA 8 area support $1000 area resistance as it aims at $1,000 on the back of 21% daily gains.
Source: bitcoin.live

I think, the bulls clearly have the edge here, so let’s keep an eye on EMA 8 as well as support in that $890 area.

Top Takeaways

$BTC EMA 8 area support – $34810 resistance
$ETH EMA 8 area support  – $1000 area resistance

🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service


🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service