Welcome to this week’s market activity analysis.
On this week’s market activities, Bitcoin maintained its market price above $10,300 amid negative speculations of downward a slide and the top Altcoins showing positive signs as Etherum rallied in the early hours of Saturday, gaining $10 from previous day’s price of $179 and achieving a new high of $189.
A look at the higher time frame, (daily) charts of Bitcoin clearly shows that for months, Bitcoin price has been creating a Descending Triangular formation or pattern. Though there is a huge misconception on the direction of the price but a large portion of crypto analysts, investors and traders are optimistically expecting the chart pattern to break to the upside and rally to reclaim new highs and possibly hit an all-time high.
Presently, the price of bitcoin is consolidating in a tight trading range, which is a clear indication of indecision in the market and either the bulls or the bears may take control and dominate the market.
Technical Analysis of the lower time frame shows an uptrend which has respected the trendline for a period of 5 days, there is also bullish chart patterns such as the reverse head and neck pattern. This bullish patterns can be traded on the short run while we keep an eye on the longer time frame for proper technical analysis.
The price of Ethereum surged in the early hours of Saturday, this Upward momentum drive has sent the Altcoin towards $189 from $179 gaining more than $10 in less than two hours after many days of consolidation and inactivity in the altcoin market.
Crypto traders and investors have acknowledged that Ethereum’s network is expressing remarkable bullish strength, which may be a good sign for the cryptocurrency near-term price action.
The fundamental information from Chris Burniske, a partner at placeholder explained in his recent Tweet that the recent surge in Ethereum gas Usage (which just hit an all-time-high) signals that demand for the Ethereum network is incredibly high. As such this fundamental impact may significantly further the gains of Ethereum as the demand of the network increases, more bullish records are expected.
From the technical analysis standpoint, looking at the daily timeframe, Ethereum price has hit the demand zone at $164-$167 with a bullish divergence pattern, indicating bearish exhaustion and hence bullish dominance. More bullish activities have been pointed out in the market we expect the price rally till it gets to the next supply zone at $203- $206.
The lower time frame analysis clearly show bullish momentum as price makes consistent higher highs