Cryptocurrency Analysis

Bitcoin Breaks Key Resistance As Ethereum Market Reaction Balance Out

Konstantin Anissimov, Executive Director at CEX.IO

Bitcoin (BTC) and Ethereum (ETH) are both paring off losses from the frightening dips experienced yesterday, as the market received a new rejuvenation. Bitcoin that traded as low as $53,827 in the past 24 hours is now up by 4.4% to $56770 per data adapted from CEX.IO. Ethereum’s surge though notable has lagged behind that of BTC, showing a much limited upward volatility. Ethereum is exchanging hands $1716.54 after seeing a 1.57% growth in the past 24 hours.

The general volatility in the market has perhaps compounded the show of indecision by the market bulls, some of whom temporarily turn into bears in a profit-taking spree. The actions of these market determiners have an encompassing impact on the global market, except for some crypto projects that choose to chart their own course irrespective of the occurrences in the market.

From the foregoing, Theta (THETA) became the new sensation as it got ranked amongst the top ten cryptocurrencies, surging by over 16% as both BTC and ETH strive to find liberation from the bears. While Theta comes off as a good performer in the past days, its longer-term survival still depends in part on the survival and growth of Bitcoin.

Bitcoin Price Resurged As Tesla Redefines its Use Case

The price of Bitcoin surged this morning and received a bullish redirection after Elon Musk, the Chief Executive Officer of electric automaker Tesla Inc, tweeted about the company’s acceptance of Bitcoin as payment for its Electric Vehicle brands.

Though the company revealed it will be making provisions for Bitcoin payments when it purchased as much as $1.5 billion worth of the cryptocurrency back in February, the latest revelation helped detractors note the growing importance and possibilities that surround Bitcoin as an unofficial legal tender. Elon Musk even colored the news and revealed the company will be HODLing the BTC proceeds, a fundamentally bullish signal that investors appear to be hopping on.

Per the BTC-USD 4-hour chart on TradingView.

The chart shows the reversal from the bearish trend that commenced after a $58,000 top seen on March 22nd. With the Relative Strength Index pointing North of the neutral zone, and the MACD line making a bullish cross above the signal line, a new trend is obviously in the books for the price of the world’s largest cryptocurrency.

The formation of candlestick trends that appear to be seeking a breakout from the signal band of the Donchain Channel toward the bullish upper band also confirms the power hijack from the bears. Sustainability now remains the core hurdle that BTC bulls have to fight. Should the Tesla-Elon Musk news continue to weigh in on the market, a further break above $58,000 resistance may lead to more massive buyings in the market. This imaginable FOMO may push the price up to a short-term price target of $62,000.

Ethereum and the New Reward For Client Ecosystem

One Ethereum as has been noted is worth $1716.5, a price level that many believe places the cryptocurrency as an undervalued gem. While many pro-ethereum investors or proponents align with the school of thought, the network’s high gas fees are remarkably a dent in the good work the blockchain has done over the years.

The days of the gas fee challenge are however numbered with the plans to launch the Proof-of-Stake (PoS) consensus model as well as ongoing plans to implement the deflationary-focused EIP 1559 upgrade.

Ahead of these plans, the Ethereum Foundation announced a boosted funding support for both its Proof-of-Work (PoW) client ecosystems as well as the PoS clients. While this multimillion funding support may not benefit the average Ethereum investor directly, it is significant as it shows the Foundation is committed to the ecosystem of developers that can help secure the future of the network. This investment is bullish and has its long-term indirect implication on Ethereum’s price.

Though the technical indicators Awesome Oscillator and MACD are not bullish on the short-term price of the coin, the longer-term prospects are indisputable. Should the bulls sustain the push-over of the price, depicted by the potential breakout of the MACD line above the signal line, a slice through the $1,750 price range will be seen, and a new support at $1,850 may be achieved in the near term.