BOTS crypto news week 6
This past week, after weeks of consolidation, Bitcoin finally stole the show again. Bitcoin hit a new all time high after Tesla announced that they had invested 1.5 billion of their cash reserves in Bitcoin. Percentage-wise, this was therefore the best week for Bitcion this year, but what can we expect now that the hype has cooled again? And what can we expect from the lagging Ethereum? We'll cover it in this Cryptomarket update.
By: Steven Eblé
As always, we start this Cryptomarket update with Bitcoin. Since last cryptomarket update, Bitcoin is up more than 25%.
In last week's analysis, I indicated that Bitcoin had broken out of the falling wedge pattern whose measured move could theoretically take us to US$48,500. It also showed a hidden bullish divergence on the daily time interval. The breakout from the pattern, coupled with a hidden bullish divergence on the daily time interval was an indication that Bitcoin's uptrend was not yet over. Two weeks later, the measured move of US$48,500 was reached.
But what can we expect from the Bitcoin price after reaching the measured move of US$48,500?
It is currently very difficult to say what Bitcoin will do in the short term. Last two updates there was more data to work with, which made it more likely that the predictions were correct. Nonetheless, we're going to see what to expect this week.
Bitcoin is currently in a rising wedge (blue pattern) in the middle of a larger ascending broadening wedge construction (orange pattern). A rising wedge is a bearish pattern. This means that Bitcoin is more likely to exit the pattern on the downside than on the upside. Despite this, hidden bullish divergence is seen on the RSI, implying continuation of the trend.
Which way Bitcoin breaks out of this rising wedge will determine whether the orange demand line (bottom) or the orange supply line (top) will be tested.
Two weeks ago, Ethereum broke out of an ascending triangle pattern with a price target of US$1850. That has now been reached almost exactly. But what can we expect from Ethereum this week?
The price of Ethereum has not changed much since last update. Therefore, there is not much to report about Ethereum at the moment.
I do think that the strength currently lies with Bitcoin. Bitcoin's next move will also determine what Ethereum will do. If Bitcoin breaks the psychological resistance around 50,000 US dollars, it is very possible that Ethereum will move towards 2000 US dollars.
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