- Bitcoin price continues to reaffirm its upside potential, but it seems poised for further lows.
- Ethereum price appears to be highly correlated to Bitcoin as it looks primed for a pullback before $800.
The correlation in Bitcoin and Ethereum price has been maintained over the past few weeks as both have recorded 7% and 11% loss respectively in the last seven days. A significant movement of the former in either direction has always been replicated by the latter.
Bitcoin price to pull back before new all-time highs
The appearance of higher lows on Bitcoin's long-term price chart continues to signal a bullish trend but first, a possible further downward move cannot be overlooked.
After failing to reclaim its previous all-time high of $19,000, Bitcoin now sits at $18,030. One critical zone which stands out on the weekly chart is $16,200. This could form a significant support level as the price broke above the line and retested before making a run for its former highs. A potential pullback to this point may see sufficient buy pressure to sustain it, thereby warding away the bears.
BTC/USD weekly chart
Slicing through this potential support may open the gateway for lower prices as investors could expect to see the flagship cryptocurrency plummet to $13,500. A decline in these price levels could present a perfect buying opportunity for market participants. It might make another bounce off on the 21-day moving average, which it seems to respect as shown on September 28.
Ethereum price trend keeps signaling a potential upswing
The weekly chart continues to suggest that Ethereum’s bullish case still holds from a macro standpoint. A key supply zone to look out for is $618. The formation of new higher highs and higher lows has sent prices back up to this key level which has now become a strong hurdle for the smart contract token to surpass.
ETH/USD weekly chart
Multiple rejections seen at this line from November 23 to date have sent Ethereum price to where it trades at $549. Market participants should expect an extension of this healthy correction as a pullback to $418 should provide sufficient momentum for an upthrust to $800.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
PUPS, WZRD, and PEPE are gaining liquidity through Bitcoin Ordinals. Creator of Bitcoin’s Ordinals protocol is debuting a new fungible token standard to rival BRC-20, Runes.
Ethereum shows firm support at key level as its correlation with US indices increase
Ethereum's price continued a sideways movement on Thursday as the market still awaits a trigger. Ethereum isn't alone in this horizontal trend; several major index funds have also traded sideways.
Mango Market attacker convicted of fraud and market manipulation
Mango Market attacker Avi Eisenberg was convicted by a federal jury on Thursday for "fraudulently obtaining" funds from the Solana-based decentralized exchange (DEX). He could face up to 20 years in prison for his role in the $110 million attack.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.