Highlights

Bitcoin shows signs of resuming its earlier bullish trend that started around the $54,000 mark. Ethereum holds steady on crucial support levels, setting up potential key price movements.

Sentiment Analysis

• The analysis suggests a cautiously optimistic sentiment for Bitcoin, as the recent upward movement indicates a potential continuation of its previous rally.
• Ethereum's consolidation pattern reflects a neutral to slightly positive sentiment, as it holds important average levels while waiting for a breakout.
• Overall, the market sentiment leans towards guarded optimism with an anticipation of potential bullish movements, though with awareness of key resistance levels and trends that might reverse this trajectory.

Article Text

Bitcoin (BTC) appears to be gathering momentum for a potential continuation of the bullish trajectory that initiated around $54,000 in early September. During the Asian trading session on Monday, BTC experienced a notable 2% increase, reaching $64,300. This surge allowed it to breach a trendline resistance that had formed due to a mix of factors, including a stimulus-propelled spike in oversold Chinese equities and the strength observed in the dollar index. Breaking through this trendline implies that the recent price dip has concluded, and the ascent from September’s sub-$54,000 levels is poised to resume. The first significant resistance zone is marked at $64,461, a point where prices declined on October 7, followed by the late September high exceeding $66,500. A substantial resistance challenge sits near the $70,000 mark, an area of intense tug-of-war between bulls and bears since March, where bulls have repeatedly struggled to establish dominance. Traders should remain cognizant of the potential for prices to retest breakout supports, a common phenomenon. This suggests that prices might revisit the $62,000-$63,000 territory before progressing upwards. A decline below the $62,000 threshold could potentially invalidate this bullish outlook, opening the possibility for further downside risks beneath $60,000. Meanwhile, the dollar index’s advance has hit a standstill around the 103.00 level, supporting a bullish outlook for risk assets like BTC. Thursday's doji candle formation in DXY suggested uncertainty among traders, hinting at a possible conclusion to the rally that originated from late September's detriments near 100. Such a pattern in charts, where price action concludes neutrally after movement in both directions, denotes indecision and could suggest a reversal. Market strategist Marc Chandler from Bannockburn Global Forex noted that technical indicators underscore the dollar’s overextended posturing, which might suggest a nearing peak. Concurrently, Ethereum (ETH) revisited its 200-day simple moving average earlier today and trades within a triangle consolidation pattern dictated by lines connecting highs from August 24 and September 27, and lows from August 5 and September 6. Should BTC confirm a bullish momentum, ETH might break free from this pattern, targeting the next resistance near $2,770—the April 13 low where it later rebounded closer to the $4,000 mark.

Last edited at：2024/12/16