Ethereum outperforms Bitcoin in cryptocurrency market recovery

Main conclusions

  • Bitcoin is up 20% after printing a low of $17,600.
  • Meanwhile, Ethereum is up more than 29% from a low of $880.
  • BTC and ETH have hit crucial areas of resistance after the recent rally.

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Ethereum has taken the lead in the latest renaissance of the cryptocurrency market, surpassing Bitcoin. Still, both assets appear to have more room to rise.

Bitcoin and Ethereum Rise

The two biggest cryptocurrencies by market cap, Bitcoin and Ethereum, look set to recover from the recent market downturn as technical indicators turn bullish.

The cryptocurrency market started the week with renewed confidence as it gained over $100 billion in value in 24 hours. The sudden rally came after Bitcoin, Ethereum and several other assets printed new yearly lows on June 18, with Bitcoin dropping below $20,000 for the first time since December 2020. As the market plummeted, the action erratic. of price generated more than $900 million. of settlements on all major cryptocurrency derivatives exchanges.

Ethereum is the top-performing asset of the top five cryptocurrencies by market cap in the recent rally. It traded as low as $880 and was up over 29% to reach a local high of $1,140. Meanwhile, Bitcoin has jumped nearly 20% since its June 18 crash.

Despite the significant rally that Bitcoin and Ethereum have seen over the past few hours, both assets could rise further.

Source: Coin360

The Tom DeMark Sequential (TD) indicator showed buy signals on the daily chart of Bitcoin and the four-day chart of Ethereum. The bullish formations developed like nine red candles, anticipating bullish impulses ahead. This type of technical pattern is indicative of a bullish one to four candlesticks.

Bitcoin and Ethereum price chart
Source: TradingView

Transaction history shows that Bitcoin faces strong resistance at $21,500, where nearly 300,000 addresses have already purchased over 210,000 coins. If the leading cryptocurrency can cut through this supply barrier, it could gain strength to advance to the next hurdle at $23,730.

It is worth noting that Bitcoin needs to hold above the $19,100 support level to validate the bullish outlook. Failure to do so could trigger another sale to $16,000 or even $14,000.

Bitcoin transaction history
Source: IntoTheBlock

Meanwhile, Ethereum must overcome the $1,200 resistance level to validate the buy signal presented by the TD Sequential. A rally in resistance could trigger an increase in buying pressure, potentially sending Ethereum to $1,800. Ethereum needs to hold above $1,000 to avoid the impression of lower lows as a prolonged decline could lead to a drop to $700.

Ethereum transaction history
Source: IntoTheBlock

While technicians are showing the first signs of a local bottom, the macroeconomic outlook does not favor bulls. The Federal Reserve’s commitment to raising interest rates has become a major point of concern for cryptocurrency investors and global financial market participants, as higher interest rates tend to hurt risky assets. Additionally, many economists have warned of a prolonged recession on the horizon, leading to massive layoffs at some of the major cryptocurrency exchanges.

The cryptocurrency market has been hit hard amid the bleak macro outlook, with the global cryptocurrency market cap at around $946 billion, about 68% down from its November 2021 peak. to rise, they will need to fight their fears and keep the support above. If successful, they may have a chance to lure investors back into the market.

Disclosure: At the time of writing this article, the author of this article held BTC and ETH.

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