Bitcoin (BTC/USD) and Ethereum (ETH/USD) Price, Analysis and Chart:
- Two steps forward, one step back – Bitcoin (BTC/USD) eyes new high.
- Ethereum (ETH/USD) looking at $2,000+ again.
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The cryptocurrency market is turning higher again, continuing a pattern of ‘two steps forward, one step back’ that has helped it make repeated all-time highs. If you listen to cryptocurrency Twitter, ‘buy the dip’ rules the market and if seen over a longer time-frame, this strategy continues to work. In its latest iteration, BTC/USD fell from around $58,000 back to $43,000 in a week before turning back higher to its current level near $54,000. The market is awash for reasons for the move higher, but as always the cryptocurrency space is fueled more by sentiment than identifiable reason. Bitcoin may be being adopted by more businesses and used on balance sheets, but it is the drive and will of traders for higher prices across the board that continues to move the market for now. Against this backdrop, the real risk remains to short the market, especially with volatility levels at or close to all-time highs.
Note on the Bitcoin chart that when BTC/USD approached its prior high of $42,000 on February 8, the coin accelerated sharply higher in the same day. To a slightly lesser extent, this also happened on December 16 when it broke the prior high of around $20,000.
Bitcoin (BTC/USD) Daily Price Chart (September 2020 – March 9, 2021)
Ethereum (ETH/USD) continues to probe higher and looks set to make a fresh attempt at $2,000 and higher. ETH/USD needs then to keep that level before it can push higher and the chart set-up suggests that this is possible. Volatility remains near record levels and will not stop any sharp move higher.
Ethereum (ETH/USD) Daily Price Chart (September 2020 – March 9, 2021)
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What are your views on Bitcoin (BTC) and Ethereum (ETH) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.