Bitcoin, Ethereum Break Out With Rising Buying Pressure
Bitcoin and Ethereum are soaring as sidelined investors re-enter the market.
- Bitcoin is attempting to reclaim the 50-week moving average as a support level.
- Ethereum has broken out of a consolidation pattern.
- Further buying pressure for the top two crypto assets could push Bitcoin to $49,000 and Ethereum to $3,850.
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Bitcoin and Ethereum are trending upwards as on-chain data shows rising interest in the spot and futures markets.
Bitcoin Has One Obstacle to Overcome
Bitcoin and Ethereum are breaking out.
The number one crypto is on a two-week winning streak as it attempts to resume its historic uptrend.
Bitcoin has gained more than 26% since Mar. 14, rising from a low of $37,570 to a high of $47,660. The bullish impulse has been supported by a spike in open interest in the futures market and strong spot demand. Still, it must regain a critical support level to advance further.
Bitcoin has climbed above the 50-week moving average at $45,500 on the weekly chart after posting significant gains over the weekend. Now, bulls will need to ensure the asset holds above this crucial support level to encourage sidelined investors are encouraged to re-enter the market.
If the cryptocurrency market maintains its recent momentum, Bitcoin will have another barrier to overcome before it heads to $55,000.
Transaction history shows that 1.84 million addresses have purchased over 1 million Bitcoin at $49,000. As the large supply wall may absorb some of the recent upward pressure, the $49,000 level marks a clear resistance level.
It is worth noting that the 50-week moving average at $45,500 plays a key role in Bitcoin’s trend because there aren’t any other significant support levels underneath it. Breaching this crucial interest zone could generate panic among investors, pushing Bitcoin toward $40,000.
Ethereum sliced through a critical resistance barrier as whales entered a buying spree.
The second-largest cryptocurrency by market cap has surged by more than 16% over the past week, gaining over 500 points in market value. The upswing could have the strength to push prices further because buying pressure is rising at an exponential rate.
On-chain data from Santiment shows that the number of addresses holding 10,000 to 100,000 Ethereum has shot up. Roughly 35 new whales have joined the network since Mar. 14, representing a 3% increase in such a short period. These wealthy market participants accumulated roughly 1 million Ethereum worth more than $3 billion.
The significant increase in upward pressure helped Ethereum break out of the symmetrical triangle it has been contained in the daily chart since early January. This consolidation pattern estimates that ETH could surge by nearly 32% to hit a target of $3,850.
Given the high volatility that Ethereum has experienced in the past, a daily candlestick close below $2,700 could invalidate the bullish thesis. Such market conditions could encourage investors to sell their holdings to avoid further losses. Increased selling pressure could then push prices toward the next critical support level, which sits at $2,500.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
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