Is Bitcoin and Ethereum Reversal confirmed after the latest price surge?
Yesterday was a good day for cryptocurrency investors, as bitcoin (BTC), ethereum (ETH), and other digital currencies reached high levels.
In the last 24 hours, bitcoin and ethereum are up 5.1% and 10%, respectively, with BTC hitting a high of $39,000 while ethereum peaked at nearly $2,800.
With bitcoin and ethereum trading high, many traders have sought to know whether both cryptocurrencies have confirmed reversal, to help them determine whether it is safe to invest in the assets heavily.
However, contrary to what may seem like a reversal from last week’s market dip, some crypto experts believe the world’s largest cryptocurrency is far from confirming a reversal.
According to a tweet by Michaël van de Poppe, Amsterdam-based famous cryptocurrency analyst, bitcoin would need to reach its previous support level of $41,500 before a reversal for the asset class can be confirmed.
Despite BTC yet to reach its previous support level, Poppe urged crypto traders to only opt for short trades if they are eager to make quick profits.
“The good move of today, reversal not confirmed at all. It’s still fighting resistance and it’s still beneath the previous support at $41.5K.”
Similarly, Justin Bennett, a cryptocurrency analyst, said that bitcoin’s relative strength index (RSI) respects last week’s trendline. He added that it would be interesting to see how BTC’s RSI correlates with the $40,000 resistance area in the next few days.
“BTC RSI respects the trend line mentioned last week. It’ll be interesting to see how this correlates with the $40,000 resistance area in the coming days.”
Bennett also weighed in on ethereum, saying that the second-largest cryptocurrency by market capitalization has continued its consolidation between the range of $2,000 and $4,000.
“I don’t think we are headed for a year-long crypto winter. I think we are in a bear market, and lengthening cycles will prevail for Bitcoin and Ethereum,” Bennett added.
Cryptocurrency analyst Altcoin Sherpa said Bitcoin’s consolidation in the $30,000 to $40,000 range should provide solid support. He is fully confident that Bitcoin will see a high of $50,000 in the next six to eight weeks.
“I have extremely high confidence we see high 40ks-low 50ks in the next 6-8 weeks;”
At the moment, it is not clear whether bitcoin and ethereum have confirmed reversal. However, long-term investors can take advantage of the market to load their bags in preparation for a bull season.