Cryptocurrency Market Outlook: Analysts discuss potential changes to Bitcoin and Ethereum.
Crypto World’s Josh pointed out that Bitcoin and Ethereum are on the verge of seeing a major breakout on a larger time frame. However, a new warning signal for Bitcoin on a shorter time horizon points to a potential change in its price pattern.
Discussing recent Bitcoin ETF news, the analyst noted that the Grayscale Bitcoin Trust has seen significant outflows, potentially due to the Genesis BTC liquidation. This selling pressure from Grayscale may temporarily limit the price of Bitcoin in the near term.
Moving on to Bitcoin’s technical analysis, Josh discussed potential breakout levels and historical trends. Bitcoin’s weekly chart suggests a breakout above $50,000, which could mark a new all-time high after the historic halving. Short-term indicators such as RSI and MACD suggest a slight decline in bullish momentum, but remain bullish overall.
On Ethereum, Josh highlighted a bullish trend during the week, targeting a break above $2,700. Ethereum’s current downtrend could lead to a test of support levels around $2,680-$2,720.
Bitcoin halving prediction
Analyst Rekt Capital also opened up about potential scenarios surrounding Bitcoin price movements leading up to the halving event, highlighting historical patterns observed in previous halvings. They noted that retracements tend to occur around the time the event occurs, sparking discussion about potential peaks and troughs in the period before and after the halving.
Rekt Capital explained that historically, the breakdown of a macro downtrend signals the start of a new uptrend, which often leads to a halving event. They showed how a reaccumulation range developed in the previous cycle, followed by a pre-halving retracement. Rekt Capital explained that it is important to understand historical resistance levels in order to find similarities across cycles and predict potential price highs in the current cycle.
Rekt Capital also examined historical support levels to identify potential bottoms during the pre-halving retracement. The importance of key support levels, such as the generation level around $35,000, which tend to play a pivotal support role over time.