Bitcoin and Ethereum Market Analysis – 16.02.2023
Bitcoin price has risen to its highest levels in six months, increasing the potential for the major cryptocurrency to retest $25,000. With this move higher, “Bulls have invalidated a fledgling price downtrend and have now stabilized prices.
Bitcoin (BTC/USD) maintained strong upward momentum following a consolidation and pullback phase. It is currently testing a key resistance level, and its reaction will likely determine the short-term future of the market.
I’m happy the selling pressure has decreased and this has put the entire market bubbling. If you’re an investor, you shouldn’t let the day-to-day emotions affect your game plan.
BTC daily chart shows a new high above the January high, now providing support at $23,150. The short-term technical picture has become even more bullish as all the MAs (moving averages) are trending high. We’re in Day-48 of the 60-day cycle targeting to form a right translated cycle.
The surge in bullish momentum has pushed the RSI (relative strength index) to the border of overbought territory. I don’t want to throw up price target but I see it forming a right translated cycle up to $28k area. In that kind of move, you can structure a long trade.
Basically the message remains, in the early part of a 4yr cycle or bull market, for BTC/USD to break even higher, bulls will need to clear a few technical hurdles. The first big challenge will be for buyers to drive prices above $25,000 and return to the August high of $25,212. Above that, is the May 2022 low at $25,401 which leaves the door open for the 2020 – 2021 move at $28,737.
Chart 1. A new high above the January high, now providing support at $23,150, paving the way for the conquest of new levels.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView
Looking at the BTC weekly chart we see a nice setup with more positive bull outlook than the daily chart. We should be trusting this upward movement as we didn’t get a lower low. I have no doubt that, the entire bullish structure will completely flush out the bears’ presence.
Considering the last candle, bullish momentum seems very high at the moment, and a breakout above the $25K level (Psychological level) is the more probable scenario at this moment.
Let’s see if $23k can be flipped into support to validate today’s higher high. The short-term outlook is already bullish, and what BTC/USD needs is to stay above the key support cushion zone ($21370-22650) again this weekend.
Chart 2. A clear break out from the lower low (downward channel) of the last 60-day cycle.
Source: bitcoin.live , BTCUSD Chart by TradingView
Ethereum eases back from $1,700 but speculative frenzy keeps price steady. Similar to BTC, the range-bound action in price has resolved to the upside with the price well above the 10-day MA.
After a brief retest of $1,712, failure to drive momentum above the current month high of $1,714, has placed pressure on price action, forcing the price to retrace. I have highlighted the resilience of this zone as it’s a key for more upsurge.
The up-sloping moving averages and the RSI in the positive zone suggest that bulls are in control. If the bulls can propel the price above the all-time high at $1800, the ETH/USDT pair could pick up momentum and rally towards the next target at $2,000 and then $2,300.
Chart 3. A brief retest of $1,712, failure to drive momentum above the current month high of $1,714.
Source: bitcoin.live , ETHUSD Chart by TradingView