- Bitcoin and Ethereum are poised to potentially reach their recent local highs this week.
- The resistance band just below $70k could be a considerable barrier for Bitcoin buyers to overcome.
- Bitcoin [BTC] has ascended past the $60k-$61k resistance zone and is currently trading slightly under $63k, suggesting an upward trend towards its all-time high of $73.7k.
Discover the latest trends and potential market movements for Bitcoin and Ethereum as they strive towards significant price milestones.
Bitcoin Approaches Key Resistance Levels
Currently, Bitcoin has successfully breached the resistance zone between $60k and $61k, and it hovers around the $63k mark. This movement is taken by traders as an indication that Bitcoin may be on the path to retesting its record peak of $73.7k. Factors contributing to this bullish outlook include diminished selling pressure from the German government and a significant influx of spot ETF investments last week. This environment has fostered a positive sentiment, leading to an optimistic market outset on Monday. Analysts suggest that Bitcoin may target higher liquidity levels, initially aiming for the $68k and $73k zones, with the possibility of triggering liquidity pools at around $76.4k.
Bitcoin’s Short-Term Market Structure
According to CrypNuevo, a notable crypto analyst, Bitcoin’s short-term trajectory shows two scenarios. The first, now invalidated, was a rejection from the former range lows at $60k. The second scenario, which appears more likely, involves flipping the $60.6k resistance zone to support. A successful retest of this level could propel Bitcoin towards the $68k and $73k resistance zones. The market structure on lower timeframes has turned bullish, with a previous hunt for the $55k liquidity level paving the way for a move towards these higher targets. This shift is underpinned by bullish market structures and strong liquidity levels to the north.
Ethereum on Track for Local Highs
Ethereum’s current market performance mirrors the positive sentiment seen in Bitcoin. The Ethereum liquidation heatmap reveals that the $3.5k-$3.7k range is likely to be revisited, suggesting a recovery and potential movement towards these levels. The ETH bulls have successfully defended the crucial $2.9k support level, aligning with the 61.8% Fibonacci retracement level, thus initiating a bullish trend. Based on these developments, Ethereum could reach $3.7k, and possibly as high as $4k, in the forthcoming weeks. This expectation aligns with the overall positive market sentiment observed across major cryptocurrencies.
Implications for Traders and Investors
Increased open interest, particularly a $3.4 billion rise since mid-July, highlights growing bullish sentiment. For traders, a retest of the $61k-$62k region might be an opportunity to enter long positions with targets set around $72k-$73k for Bitcoin. Similar bullish prospects apply to Ethereum, with traders eyeing the $3.7k-$4k range. Investors should closely monitor key resistance and support levels, leveraging these insights for strategic trading decisions.
Conclusion
As Bitcoin and Ethereum edge closer to their local highs, the upcoming week presents potential for significant gains. Traders should watch for critical resistance zones and market sentiment trends that influence price movements. The broader bullish outlook, driven by reduced selling pressures and increased investments, provides a favorable backdrop for continued upward momentum. Stay tuned for further developments as the crypto markets unfold. This week promises to be pivotal for both Bitcoin and Ethereum.
