Bitcoin and Ethereum hit resistance with $42.5K flip needed for BTC longs
Bitcoin (BTC) and Ethereum (ETH), the leading cryptocurrencies, have hit a wall of resistance at $42.5K and $45.5K, respectively. This isn’t the first time we’ve seen the price of BTC and ETH stagnant in the $42-$45 range, and it’s not clear where the price will go next.
This morning, the price of Bitcoin and Ethereum broke through the resistance level of $42,5K on a strong volume move. Was this a “B” wave move up? Or is this the start of a “C” wave down? The answer to that has a lot to do with next week’s big FOMC meeting.. Read more about options on ethereum and let us know what you think.
An expert cautioned on Aug. 6 that Bitcoin (BTC) and Ether (ETH) are ready for a “massive” rise, but that short-term indications indicate a correction.
1 hour candle chart of BTC/USD (Bitstamp). TradingView is the source of this information.
Do you believe in resistance? “I’m not interested in it.”
As the week came to a conclusion, data from Cointelegraph Markets Pro and TradingView showed both BTC/USD and ETH/USD behaving around key range resistance.
After rapid gains throughout the previous week, a late surge the day before interrupted an overall decline, but Friday supported the notion that longer-term resistance would stay in place.
In his most recent video update, Cointelegraph contributor Michael van de Poppe emphasized the need to recover an area above $42,500 in order to pursue long BTC holdings.
“At this point, I refuse to become optimistic on Bitcoin until we can flip this level for support,” he added.
“Of course, if we get a breakout like this, where we rally towards $45,000 and flip this zone, I’ll look for longs, but I’m not intrigued right now in this structure.”
A similar scenario played out for ETH/USD, which was also trading near resistance, with no indication that the hype surrounding the London hard fork would result in a long-term paradigm shift.
1-day candle chart of ETH/USD (Bitstamp). TradingView is the source of this information.
Bitcoin was trading at $40,500 at the time of writing, while Ethereum was trading around $2,740, down from highs of $2,845 on Bitstamp.
There is no evidence of long-term bearishness.
Others were a little more hopeful, with Rekt Capital, a fellow trader and analyst, claiming that Bitcoin was doing “everything right” to break out of its previous price range, which had been in place since May.
$BTC #Crypto #Bitcoin pic.twitter.com/VVSi78cLRQ #BTC is doing everything correctly to confirm a breakthrough from its weekly range of $29000-$39000$BTC #Crypto #Bitcoin pic.twitter.com/VVSi78cLRQ
August 6, 2021 — Rekt Capital (@rektcapital)
According to Cointelegraph, a closing over $40,000 before Friday’s options expiration would strengthen the bull argument.
With its own $357 million expiration event the same day, Ether, on the other hand, seemed to be adding to bulls’ clout.
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The longer the period, the more bullish the take is, as it always is.
“The next price discovery will be insane,” said fellow trader Pentoshi on Thursday. If BTC/USD manages to break through its current all-time highs of $64,500, he believes $250,000 will follow.
Bitcoin and Ethereum have been having a tough time since the beginning of July, with the two majors trading sideways for the past two weeks. Bitcoin has been holding above $12,000 while Ethereum has been stuck below $700. The next main event could be another Bitcoin round-trip flip, but it will likely take at least $42.5K for the hard fork to occur, which could come soon if it cannot be delayed any longer.. Read more about ethereum price prediction cointelegraph and let us know what you think.
Related Tags
This article broadly covered the following related topics:
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