This analysis will be more of a long-term prediction than the traditional short-term outlook. Thus, the market will need to follow some rules and meet some targets to have this analysis valid. Yet, I see some potentially very interesting levels ahead for the coming weeks.
Bitcoin to retest the 28 000 – 30 000 USD mark?
From a daily point of view, this level of Bitcoin makes a lot of sense. For more than a year, the 30 000 dollars mark was our support, which was tested many times, which is why I see this level to be ideal for retest.
I cannot say if we go lower before we test it, but this level has a lot of liquidity, which is why it is going to be tested sooner or later, as the liquidity behaves like a magnet for the price. From the potential growth standpoint, this level will be crucial for Bitcoin to break and keep as a support.
1D chart of Bitcoin, Source: Author’s analysis, tradingview.com
Ethereum with a potential 50 % upside?
Most of the other cryptocurrencies do have their own important levels that they need to break. For instance, for Ethereum, the level is around 1 711 – 1 913 USDT. The daily chart shows a very strong liquidity in this area. It is also a 0.382 Fib level of the retracement of the previous move, and a very strong resistance, which previously served as a support.
1D chart of Ethereum, Source: Author’s analysis, tradingview.com
Which conditions does Ethereum need to fulfil for it to have a chance for the 50 % upside move in the coming days?
- Break the MA21
- Break the local trendlines
- Create a higher high
- Create a higher low
If Ethereum, and many other altcoins, fulfil these conditions, they have the potential for the upside move and tests of the mentioned “important levels.”
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It needs to be stated that these are more long-term analyses and zones. I am currently looking at several months’ worth of price actions and cycles. Even if we move down in the coming days, it does not mean that these levels are invalidated. But in the coming weeks we should be able to move closer towards these levels if we want to create some form of a long-term range.