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Bitcoin and  Ethereum Market Analysis – 10.11.2021

Bitcoin’s new all-time high at $69,000 is an indication that the uptrend is intact despite retracing a bit to its support area-$64.5k. After achieving a fresh all-time high, traders and investors are making frantic efforts in an attempt to push prices towards $100k.

The retracement is what makes the rally more sustainable. Many market participants currently expect the peak to happen in December 2021, similar to previous cycles. This is possible, but it really makes the rest of the bull market feel very rushed.

With markets now pricing in the effects of supply constraints, inflation and regulatory scrutiny, large institutions may continue to look towards digital assets as a hedge against inflation which could see BTC rising further. This is an assurance that, we are going to see more upsides soon.

The bull market is very encouraging and has a sustainable structure, so let’s not lose our spot position in this highly bullish Q4 2021.

While the bitcoin market capitalization has neared $1.3 trillion for the first time, most altcoins are also painting notable increases including recording new all-time highs. Ethereum was one of those that saw new records at nearly $4,900. However, the second-largest crypto has also dipped since then and currently trades just over $4,600.

BTC daily chart shows daily EMA 8 and 50-day MA continue to trade in positive territory suggesting that the bulls are in control, at least for now. Bitcoin had a new ATH-$69k on the daily chart before putting in that upthrust and outside candle that just closed in the dip.

It seems the consolidation of many days ago is off the table, as we now have a new ATH which translates an increased momentum. Having said that, we have to pay attention to the OBV bearish divergence which could signal a short term top for $BTC.

For now, the bulls still hold key pivot at $63.8k, above that they have a decent argument. Below $60k would confirm a double top, with target of $53k area as worst case scenario.

I don’t see the bulls topping out soon, focus on the key horizontal levels currently holding as support.

Pic.1: The bulls still hold key pivot at $63.8k, above that they have a decent argument.
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Looking at the BTC weekly chart shows nice bullish setup with a break above the prior high and the ascending triangle. As long as the price action continues to trade above the weekly EMA 8, we have nothing to panic here as BTC will initiate more impressive leg up.

From the perspective of technical analysis, profit taking near all-time highs and the need for a retest of lower support levels are normal processes for BTC and that’s what has played out here. The modest pullback to $64k indicates that traders are buying on every minor dip.

The current quarter’s price action has a correlation of 0.88 with the fourth quarter of 2017. Bitcoin rallied 220% in Q4 2017 and if history repeats itself, Bitcoin could reach $96,355.

Since BTC successfully closed above $64.5K, expect further upside towards $70.1K, $74.7K, and $80.5K.

Pic.2: The chart shows nice bullish setup with a break above the prior high and the ascending triangle. Source: bitcoin.live

Ethereum

Similar to Bitcoin, Ethereum has recently set an ATH above $4,800 before retracing within the constraints of the rising channel which continues to provide both support and resistance for the immediate move.

ETH continued its relative strength, with the price now approaching the rising diagonal demand/support. Let’s stay focused on our key horizontals. OBV bear divergence is also a warning, we should not ignore.

The major target to watch on the upside is the psychological level at $5,000 and let’s treat every dip as a buying opportunity.

Pic.3: The chart shows OBV bearish divergence which could signal a short term top for ETH. Source: bitcoin.live

Top Takeaways
$BTC 63.8k area support / 67k area resistance
$ETH $4350 support / $4850 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