- Bitcoin is currently trading at $10,471 after a small bounce on September 22.
- Ethereum had a similar rebound; however, it stands weaker than Bitcoin.
- Both digital assets are gearing up for a possible continuation move to the upside.
Although Ethereum and Bitcoin are usually correlated, we have seen a break of this correlation in the past few months, mostly due to the recent power of ETH propelled by the DeFi craze. It seems that now tables are turning around as Bitcoin is gaining some ground over smart-contracts giant in the short-term.
#marketupdate— Willy Woo (@woonomic) September 23, 2020
This latest pull back did not come with the usual movement of coins on-chain, the sell-off therefore was fueled from coins on exchanges. Without large volumes of coins moving from wallets I cannot see sufficient sell-side supply to push prices down with much gusto. pic.twitter.com/ANhugKdJxw
The last crypto pullback on September 20 was definitely not as steep as the one that happened on September 2, wiping out around $80 billion. So far, the total market capitalization of all cryptocurrencies has fallen from $348 billion to $329 billion. Willy Woo, the pioneer in on-chain market analysis, has recently stated that the other pullback was fueled by large volumes of coins moving from wallets to exchanges, something that we do not see now.
BTC/USD 1-hour chart
Bitcoin price just climbed above the 50-SMA and has turned it into support in the short-term. The MACD also turned bullish, practically simultaneously, indicating that Bitcoin is looking for the next leg up. BTC bulls were able to establish a higher low at $10,383 compared to $10,359. The next resistance level is set at $10,573, the high of the bounce. The flagship cryptocurrency will then aim to hit the 100-SMA at $10,700.
ETH/USD 1-hour chart
The story is quite different for Ethereum as the price has created a descending parallel channel. The digital asset needs to climb above the 50-SMA, currently sitting at $341.59, to then attempt to climb above the channel's upper trendline, which is around $345.
ETH bulls have a lot of work to do in the short-term; however, if they can turn the 50-SMA into support and then climb above the upper trendline, Ethereum price would be looking at the 100-SMA at $360 as the next target.
A close below the lower trendline at $333 would invalidate the bullish outlook for Ethereum. Similarly, if Bitcoin price fails to hold the 50-SMA at $10,470 as support, its price can easily slip towards the nearest support level at $10,383.