- Bitcoin made a new all-time high of $63,500 as institutional demand skyrockets.
- Likewise, Ethereum created a record peak of $2,230 fueled by speculation over an upcoming protocol upgrade.
- If the buying pressure behind these cryptocurrencies prevails, BTC could target $70,000 and ETH $2,600.
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Bitcoin and Ethereum are back in price discovery mode. Despite the significant gains already posted, technical and fundamental factors point to further upside momentum.
Bitcoin Burst Through Key Resistance
Institutional demand for Bitcoin continues to rise as it moves closer to replace gold as the global digital-reserve asset. The pioneer cryptocurrency’s price reflects the erosion of trust in the financial system.
Even TIME Magazine joined the likes of Tesla, Square, and MicroStrategy by announcing that it added BTC to its balance sheet.
While buying pressure mounts, Bitcoin has done nothing but shoot up. Its market value is up more than 6% in the past 12 hours, gaining nearly 3,500 points.
The sudden bullish impulse pushed BTC toward a new all-time high of $63,500, and it seems to have more legs to go up.
Indeed, BTC recently broke out of an inverse head-and-shoulders formation on its daily chart and has yet to reach its upside potential.
The distance between the pattern’s neckline and head suggests that Bitcoin can advance by another 7.30% toward the 141.1% or 161.8% Fibonacci retracement level.
These crucial interest areas sit at $67,450 and $70,330, respectively.
Even though nothing seems to be preventing Bitcoin from advancing further, prices must continue to trade above $62,000 for the optimistic outlook to prevail. Failing to do so may trigger a significant number of stop-loss orders around this support level that leads to a steep bearish impulse.
Under such unique circumstances, market participants should watch out for a downswing toward the 78.6% Fibonacci retracement level at $59,300 before the uptrend resumes.
Ethereum Primed for Further Gains
The Ethereum network has been put to work over the past few years. The emergence of the DeFi and NFT market sectors has significantly affected the network’s ability to handle transactions, sending fees to the moon.
The scalability issues have also put pressure on developers to ship proof-of-stake this year.
PoS will essentially make the Ethereum protocol more scalable while significantly reducing its environmental impact. It will also make miners obsolete by allowing validators to earn fees for securing the chain.
As speculation mounts around the upcoming hard fork, the buying pressure behind Ether has risen substantially. The second-largest cryptocurrency by market capitalization was able to break out of a symmetrical triangle on Mar. 31, and it is up nearly 22% since then.
Although ETH recently made a new all-time high of $2,230, the technical formation projects further gains on the horizon.
The height of the symmetrical triangle’s y-axis forecasts that Ether could rise by another 14% toward the 141.1% or 161.8% Fibonacci retracement level. These potential bullish targets sit at $2,480 and $2,720, respectively.
The odds will continue favoring the bulls as long as Ethereum holds above the $2,050 support level.
Moving below this crucial demand barrier may generate panic among market participants, leading to a downswing to the 78.6% Fibonacci retracement level at $1,860.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
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