“After overcoming the resistance, previously support, of the $40,000 bitcoin future, we can say that we have just witnessed the first sign of real strength since the corrective phase began in early November after marking all-time highs in the $69,355″commented José María Rodríguez, an analyst at Bolsamanía. “Movement that, in addition, leads him to pierce the upper part of the short-term bearish channel.”
The analyst projected Bitcoin towards the approx. US$48,000 dollars. “What is really important is that despite the recent correction of more than 50%, the price structure has never stopped building medium and long-term rising lows and highs,” the analyst underlines.
A number of recent factors have contributed to the rise in digital assets. In addition to the correlation with Wall Street or the weakness of the dollar, experts point to events in the sector, such as the fact that KPMG in Canada has completed an allocation of crypto assets to its corporate treasury, the firm’s first direct investment in digital currencies. The allocation includes Bitcoin and Ethereum.
Technical analysis now points to the buyers having managed to turn the dynamic resistance of the 20-day moving average into potential support. However, buyers will most likely challenge the 200 day moving average near the $3,400 mark for Ethereum for a more promising upside rally.
The sudden move higher in BTC has led to a lot of bullish proclamations from crypto holders, while more experienced traders are taking this opportunity to lock in some profits and reposition themselves for what comes next.
Source: Ambito
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