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Bitcoin & Ethereum Market Analysis – 07.01.2021

Bitcoin continues its monster rally Wednesday, 6th January, hitting an all-time high of $35,500. Bitcoin bulls bought the dip and produced enough momentum to send BTC price to this new all-time high.

Over the past month Bitcoin has rallied almost 90% on the back of the growing institutional interest and a supply squeeze limiting the available supply. As 2021 ramps up, Bitcoin’s gravitational pull on the broader crypto market has intensified. This bullish price action has continued to impress, as the macroeconomic picture continues to favor bulls with increased money supply and stimulus on the horizon.

Bitcoin breaking a new all-time high above $35,000 has sparked a massive rally fire that is now spilling over to Altcoins. Ethereum and other Altcoins have benefited from Bitcoin’s leadership pace. In fact, there’s some evidence to suggest that institutional investors are eyeing ETH as the Bitcoin trade becomes crowded with players with deeper pockets.

From the BTC daily chart, the BTC price gained more than 8% in less than 24hours. The recent peak high at $35,500 has shown a breakthrough of $33,580 to $33,740 areas which would warrant a new test of the all-time high region and possible continuation toward $38,000 and even $42,000.

Fig.1.Bitcoin: A breakthrough of $33,580 to $33,740 areas suggests possible continuation toward $38,000 and even $42,000.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live

I don’t see Bitcoin topping out soon, as many bullish signals are still flashing. Keep buying and do not take profit at this moment. The Bull is likely to be sustained for the longer term, which makes this bull cycle very different from the bull run of 2017.

Looking at the weekly chart, the BTC price keeps breaking resistance levels one oafter another. BTC has sustained the 21-Week MA and as long as Bitcoin rests on this MA, further continuation is likely for the BTC/USD pair. At this moment, the 21-week MA is holding support at the $27,976.You cannot pinpoint where the EMA 8 area support resistance falls to at this moment.

Let’s keep it simple and stick with our plan as we’re likely to see more vertical moves.

Fig2. Bitcoin: The 21-week MA is holding support at the $27,976. Source: bitcoin.live

Ethereum
Ethereum has an excellent move as it intensified its bullish momentum on Wednesday. The volume accumulation is high, signaling more uptrend to come. ETH nears $1,200 for the first time in almost three years, extending its weekly gains to 60%.

Fig.3 Ethereum: The volume accumulation is high, signaling a test to 1400 level as the EMA 8 area support area resistance. Source: bitcoin.live

The gains were largely driven by a confluence of fundamental factors, including Bitcoin’s parabolic rally and the anticipation of ETH futures contracts.

We’re going to test 1400 level as the EMA 8 area support area resistance. As with $BTC we are buying the dips here.

🔴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