News
March 9, 2021

BOTS crypto news week 9

The Cryptocurrency market is cooling down after the extreme volatility of the past few months. It is very healthy for the market to correct and take a breather after the massive price increases of the period leading up to this correction. Currently, Bitcoin is consolidating. This gives various alt coins room to grow. In this update, we will look at the state of Bitcoin and whether Ethereum can continue to gain ground on Bitcoin.

BOTS crypto news week 9
BOTS crypto news week 9

By: Steven Eblé


Bitcoin

Bitcoin has rallied reasonably well after last week's strong correction. Since the lows of early March, Bitcoin has already gained more than 15% in value. In this market update, I look back at last week and outline the chances that Bitcoin could reach new all time highs in the coming weeks.

Last week I showed that bullish divergence could be seen on the 4-hour timeframe of Bitcion. This could be deduced from the fact that the oscillators were making higher highs, while the price was making lower lows. Also a clear diagonal resistance could be drawn (blue line). I told them that 50.000 US-dollar would be the next station if the bullish divergence would work out and the blue line would be broken. By now this scenario has become reality and Bitcoin is trading around 50,000 US dollars. But what can we expect next?

There is a clear resistance zone to be seen between 52.000 US dollars and 50.000 US dollars. By now this resistance zone has been tested three times as a result of which it is getting weaker and weaker and that consequently increases the chance of a break-out. Looking at support and resistance levels it can be expected that Bitcoin, after breaking through the resistance, will soon be able to test the all time high formed in February. In the next article I'm going to explain why caution is still recommended.



If Bitcoin breaks the resistance region of 52,000 US dollars a bearish cypher pattern could occur. A cypher pattern is a pattern consisting of five points, indicated by XABCD. The pattern is based on Fibonacci rotations and has a relatively high success rate. The D of the pattern is around 55,000 US dollars, so around that price level there is a possibility that Bitcoin will make a temporary downward shift.



Ethereum

Ethereum did exceptionally well last week. It gained, as I expected last week, a lot of ground against Bitcoin and the chart below looks technically good too. Support around the 2017 high has held up well, making continuation of the uptrend seem plausible. Ethereum also recently broke a resistance area (indicated by the blue line). This was followed by a backtest. It seems that Ethereum is heading for the 2000 US dollar area again.

As long as Bitcoin does not go into price discovery again and break its all time high or undergo a very severe correction, but continues to rank around the current price levels I think it is likely that Ethereum could gain more ground against Bitcoin in the coming weeks.



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