key takeaways
- Bitcoin jumped 20% after printing a low of $17,600.
- Meanwhile, Ethereum is up 29% higher from the $880 low.
- After the recent rally, BTC and ETH reached important areas of resistance.
Share this article
Ethereum outperformed Bitcoin in the latest cryptocurrency market revival. Still, it looks like both properties have more room to climb.
The Rise of Bitcoin and Ethereum
The two largest cryptocurrencies by market capitalization, Bitcoin and Ethereum, are set to recover from the recent market drop as technical indicators change rapidly.
The cryptocurrency market started the week with renewed confidence as it gained over $100 billion in value in 24 hours. Bitcoin, Ethereum, and several other assets suddenly surged after splashing out on new annual lows on June 18, marking the first time since December 2020 that bitcoin fell below $20,000. Uncertain price action generated more than $900 million in value as the market declined. Liquidation across all major crypto-derivative exchanges.
Ethereum is the best performing asset among the top five cryptocurrencies by market capitalization in the recent rally. It traded low at $880 and gained over 29% to reach a local high of $1,140. Meanwhile, bitcoin is up almost 20% since the June 18 drop.
Despite the significant rally of both Bitcoin and Ethereum in the past few hours, both assets could be headed for a higher upside.
The Tom DeMark (TD) Sequential Indicator is presenting a buy signal on the daily chart of Bitcoin and the four-day chart of Ethereum. Bullish formation developed in the form of red nine candlesticks anticipating further Bullish impulses. This type of technical pattern is a signal for one to four candlesticks to rise.
Transaction history shows that bitcoin is facing stiff resistance at $21,500, where approximately 300,000 addresses have previously purchased more than 210,000 coins. If the leading cryptocurrency can break through this supply wall, it could gain further strength to reach the next hurdle at $23,730.
It is worth noting that Bitcoin needs to stay above the $19,100 support level for the bullish outlook to be valid. Failure to do so could result in a further selloff towards $16,000 or $14,000.
Meanwhile, Ethereum has to cross the $1,200 resistance level to validate the buy signal presented by the TD sequence. An increase in the previous resistance could add to the pressure, potentially sending Ethereum towards $1,800. Ethereum needs to hold above $1,000 to avoid printing lower lows, as a prolonged drop could result in a crash to $700.
While technicals show early signs of a local bottom, the macroeconomic outlook is not in favor of the bulls. The Federal Reserve’s commitment to raising interest rates has become a major point of concern for crypto investors and global financial market participants alike as higher interest rates damage risk-averse assets. Furthermore, many economists warn of a prolonged recession on the horizon, leading to massive layoffs at some of crypto’s top exchanges.
With the global cryptocurrency market capitalization at around $946 billion, down almost 68% from its November 2021 peak, the crypto market has been hit hard amid a gloomy macro outlook. For Bitcoin and Ethereum to continue to rally, they will need to fight fear and stay above support. If they are successful, they may have a chance to lure investors back into the market.
Disclosure: At the time of writing, the author of this article holds BTC and ETH.
For more major market trends, subscribe to our YouTube channel and receive weekly updates from our leading Bitcoin analyst Nathan Bacheler.