Blackrock's request to the SEC for a Bitcoin ETF has caused Bitcoin's volatility to return. After months of lower trading, the recent rally pushed Bitcoin above $30,000. While Ethereum is still experiencing rejection from a significant resistance level, Bitcoin is forming a new pattern that could potentially lead to a breakout.
According to a new YouTube video from Crypto World, Bitcoin is facing a major resistance level around 30.5K, which needs to be broken to confirm the breakout. Ideally, a weekly close above $31,000 would confirm the breakout.
Looking at the daily chart of Bitcoin, he noted a short-term cooling in price as the overbought RSI (Relative Strength Index) reached overbought territories. This usually indicates a temporary cool down or a slight retracement in price. A reset in the RSI would provide room for a move higher. If Bitcoin sees a confirmed break above $31,000, the next target would be around $37,000.
If the support is broken, we could see a move down from $28.8K to $28.9K. Conversely, a break above the resistance could lead to a move towards 32,000.
Ethereum Price Analysis:
Shifting your focus to Ethereum, ETH price is still trading above a support range that was previously resistance. This support range is between $1,770 and $1,820. However, in the short term, Ethereum has experienced a loss of bullish momentum due to a rejection of the gold pocket, a major Fibonacci level between $1930 and $1940.
He said the likelihood of further bullish momentum was reduced and the expectation of sideways price action or a slight pullback in the near term. Support levels can be found around $1,820 and $1,750 to $1,780.
