Bitcoin and Ethereum Market Analysis – 24.01.2023
Overall, the market has been in a significant uptrend, as Bitcoin price has risen almost 40% to $23,000 this month, the steepest gain since October 2021.
As the market cools off, traders have another decision to make. Will they add to their positions, or is it time to call an end to the surging rally?
Key Bitcoin price metrics show that despite the struggles faced in order to breakout past $23,000, we are growing bullish as evidenced by an uptick in leveraged long positions over the past week as BTC trading range grew tighter.
The bull market is very encouraging and has a sustainable structure, so let’s not lose our spot position in this bullish view Q1 2023.
Looking at the BTC daily chart we see a strong uptrend structure showing resilience since its rebound. The price action is well above the 10-day MA and each move consolidates for a follow up move. With this setup, we may not get another pull back into the mid-cycle low.
We’re on Day-25 of the 60-day cycle and so, due a dip into a Half Cycle Low. Don’t count too much on it though, powerful cycles often don’t give us much of a dip at the mid cycle.
Next big level towards the upside would be the August high of 25,212 which will give us a typical bullish right translated cycle shown in the chart.
Chart 1 A strong uptrend structure showing resilience since its rebound.
Source: Paid Content by Peter Brendt and his partners at bitcoin.live , BTCUSD Chart by TradingView
The BTC weekly chart, shows the price exceeding the upper weekly BB, indicating that the 4-cycle is behind us. The chart is very encouraging as we have 3 green candles in a row and the price action is well above the 10-week MA.
We’re beginning to have a nice volume here even with the OBV (On bound Volume) conforming the uptrend.
We’ve to let go that bearish mindset developed during bear market and think more positive.
Bullish view now is good for the short-term trade as there’s no sign of weakness here and we should treat every dip as a buying opportunity.
Chart 2. BTC price exceeding the upper weekly BB with 3 green candles in a row.
Source: bitcoin.live , BTCUSD Chart by TradingView
Ethereum/USD
Ethereum/USD is really looking good as higher high and higher lows are trending in the right direction. The price appeared to be consolidating the weekend’s gains, with prices remaining above the $1,600 mark.
We should expect a rise in the coming days, with resistance to show up near the psychological $1,700 price zone. Ultimately, if ETH can surpass the $1,700 barrier, then $2,000 could become a tangible reality in the coming days.
More factors suggest the uptrend will continue as opposed to a hopeful pullback.
Chart 3. ETH/USD looking good as higher high and higher lows are trending in the right direction.
bitcoin.live , ETHUSD Chart by TradingView
ETH/BTC
Eth/BTC is losing some value verses BTC but in general, fairly match holding within the range. It’s holding up that level and also bullish with Ethereum.
Once the bulls become more established (that is more capital begins to flow into the market) investors will begin to look riskier options like Ethereum ans other alts.
From the long-term perspective, it’s ideal to hold that 50-50 mix between Ethereum and Bitcoin.
Chart 4. ETH holding up fairly within the range.
Source: bitcoin.live , ETHBTC Chart by TradingView
