- Bitcoin and Ethereum were likely headed for their local highs this week.
- The band of resistance below $70k could pose a substantial obstacle to the buyers.
As a seasoned cryptocurrency analyst with years of experience observing market trends and price movements, I firmly believe that Bitcoin and Ethereum were on track to reach their local highs this week. The resistance levels at $70k for Bitcoin and $3.7k for Ethereum loomed large, but the recent positive signs suggested that buyers would be able to overcome these obstacles.
Bitcoin surpassed the hurdle of $60,000 to $61,000 and was trading just under $63,000 at the current update. This development has led traders to believe that Bitcoin is on a path toward reaching its peak price of $73,700.
As an analyst, I’ve observed that selling pressure from the German government on Bitcoin (BTC) has diminished, while inflows into spot Bitcoin Exchange-Traded Funds (ETFs) showed significant positivity last week. This favorable combination sets the stage for a potential price recovery.
This sentiment saw a positive uptick on Monday, but here’s what is likely in store next.
Using the liquidation charts as a compass
Crypto expert CrypNuevo outlined two potential possibilities for Bitcoin’s near-term future in a recent post on X (previously known as Twitter). However, one of those predictions no longer holds true following Bitcoin’s rejection from the previous support level at $60,000.
Previously, the price level at $60.6k acted as a strong resistance, but afterwards, it transformed into a support level and was tested once more before the prices continued climbing up to hit the resistance levels at $68k and $73k.
As an analyst, I would advise keeping a close eye on these two liquidity pools, which currently hold significant amounts, totaling $76.4k. Reaching this threshold may lead to a substantial wave of short liquidations.
Based on the current market structure, there’s a likelihood that the lower timeframes will display bullish signs. Once this happens, the next objective for price movement could be the regions with higher liquidity levels, which were previously targeted around the $55k mark earlier in the month.
If the stock price tests the $61,000 to $62,000 mark again, it might encourage bullish investors to buy and hold, with an ultimate goal of reaching the $72,000 to $73,000 area.
A $3.4 billion rise in Open Interest since the 13th of July is a sign of optimistic investor attitude. Consequently, traders may anticipate a favorable crypto market development during the upcoming week.
Ethereum also targets the local highs
The Ethereum liquidation heatmap showed that $3.5k-$3.7k is likely to be revisited soon.
Read Bitcoin’s [BTC] Price Prediction 2024-25
As an analyst, I’m pleased to report that the Ethereum (ETH) market experienced another favorable turn of events. When the price dipped to the $2.9k mark, which coincides with the 61.8% Fibonacci retracement level, ETH bulls swiftly stepped in to defend this critical support. Subsequently, they initiated a robust recovery from that point.
Based on current trends and available data, there was a strong possibility that Bitcoin could reach around $3,700 to $4,000 within the upcoming weeks. Similarly, it was foreseeable that Ethereum could hit $3,700 over the next week. Additionally, Bitcoin’s price might surge up to $68,000 in the near future.
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2024-07-16 12:07