After setting new all-time highs, the two largest cryptocurrencies by market cap may test higher highs.
Following the breach of previous all-time highs, Bitcoin and Ethereum appear to have entered a new leg up. Although market participants may be overly optimistic, these cryptocurrencies may still have a lot of room to grow.
Bitcoin’s uptrend has resumed.
Bitcoin has reached a new all-time high of $68,540, indicating that it has begun a new upward trend.
The flagship cryptocurrency began the week of November 8 on a high note. Since Monday’s opening, BTC has risen by more than 8% to a new high, gaining more than 5,210 points in market value.
Since July 20, Bitcoin appears to have been contained within an ascending parallel channel on its daily chart.
Since then, every time BTC has risen to the upper boundary of this technical formation, the uptrend has reached exhaustion, causing the price to retrace to the pattern’s middle or lower edge. The pioneer cryptocurrency tends to rebound from this point, which is consistent with the characteristics of a parallel channel.
Now that Bitcoin has recovered from the channel’s middle trendline, it is not unreasonable to believe that it is on its way to the channel’s upper boundary. With such a bullish price action, BTC could gain another 9% in market value to $74,730 before the next correction occurs.
It is worth noting that some argue that as Bitcoin has entered price discovery mode, cryptocurrency enthusiasts have entered a state of “extreme greed.” Such market sentiment is not always indicative of the continuation of the uptrend.
It is critical to keep an eye on the $64,900 support level because any signs of weakness at this level could result in a correction towards $57,2000.
Ethereum appears to be unstoppable.
Before Bitcoin entered price discovery mode, Ethereum reached a record high of $4,845, implying that ETH is leading the most recent run-up.
Since Monday’s opening, the second-largest cryptocurrency by market cap has gained more than 200 points. Although the $5,000 psychological resistance level may serve as a price point for many traders to profit, ETH faces little to no discernible opposition in the near future.
On Ether’s daily chart, the formation of a cup and handle pattern suggests that the price may rise further. The distance between the bottom of the cup and the pattern’s breakout level suggests that Ethereum needs to gain another 93 percent to reach the bullish target of $9,350.
Given current market sentiment, it is critical to consider the downside potential in order to avoid being shaken out. The $4,000 level represents a solid foothold for Ethereum. Only a breach of this support level can result in significant losses, as the next area of interest is around $3,000.