The cryptocurrency market as a whole is still stuck in a no man’s land as the battle between bulls and bears have yet to come to a conclusion. Bitcoin, however, looks promising with its bullish structure remaining intact. Ethereum, despite yielding strong year-to-date (YTD) returns, still struggling to determine a clear direction.
Bitcoin Technical Analysis
Drawing the trend line at the end of the Bitcoin (BTC) bull market in late 2017, we see that the trend line from the top was acting as a resistance level, keeping the price down throughout 2018 and 2019. New developments came to light when BTC finally broke above this suppressing line in July of 2020 with a recent dip to confirm the support in early September, and we are led to believe that BTC is set for a new major leg up.
After this, Bitcoin is likely to consolidate sideways for a while to gather more strength and break up above the $12,500 level which is the 2020 yearly high. A decisive breakout will take us to retest the previous year’s high at $14,000 which should be the last roadblock preventing BTC to dash to the all-time high (ATH) at $20K.
You may also want to read: Chinese State-Owned Media Praises Cryptocurrency as “The Best Performing Asset of 2020”
Ethereum Technical Analysis
The second-largest cryptocurrency by market capitalization, Ethereum (ETH), provides an impressive YTD return of 177% which eclipsed that of Bitcoin. Despite the tremendous gains made this year, when zooming out we can see that ETH is stuck in a huge trading range between $70 and $485.
To demonstrate a strong bullish momentum, ETH needs to break above $485 which was the point previously held by the bulls before the breakdown to its multi-year low. The breakout could be confirmed with a dip to retest the top channel and turn it into a support level, only then we can be certain that ETH finally broke free from the two years long consolidation period.
The good news is, the longer the consolidation period lasts, the more an asset can gather momentum for a spike. Smashing through the $485 level can give ETH a spectacular result by surging all the way to $825 and eventually, the ATH at $1,400 would be in sight.
Disclaimer: This analysis is the view of the author’s alone, and does not in any way represent trading advice. all traders should trade at their own risk.
You may also want to read: Will Ethereum 2.0 Be Ready by November?
