As the prices of both bitcoin (BTC) and ethereum (ETH) have been locked in a tight range for this most part of this year, some analysts argue that the two may be bottoming or are soon to bottom – but with cautionary words attached against premature bullishness.
“Bitcoin is more likely forming a floor than a ceiling,” Bloomberg Intelligence analyst Mike McGlone, wrote in his latest report. More precisely, the price may be forming a bottom again around USD 30,000. This level “has held a floor under the market since the initial breach of what was resistance at the start of 2021,” per the analyst.
Specific range traders may be in for a disappointment, he said, explaining that:
“Short holders seeking to cover or new long positions expecting [USD] 30,000 may be disappointed, and [USD] 60,000 resistance appears less enduring than in November.”
This consolidation period may be ending with the path of least resistance pointing higher, McGlone noted.
He added that the next key bitcoin threshold may be the much-discussed and long-predicted USD 100,000.
Meanwhile, a technical analyst at investment research firm Fundstrat, Mark Newton, opined that BTC may be bottoming in the next few months, stating that there’s a “good likelihood” that the low for the coin is coming by the spring months, Bloomberg reported.
Nonetheless, it’s still not time to get bullish because “this minor two-week bounce might still be premature in expecting a new intermediate-term rally has begun,” per Newton.
Bulls should keep an eye on the price moving above USD 40,000, he said, adding that a fall below USD 35,511 would lead to a test of USD 32,950.
“Until [USD] 40,000 is exceeded on a daily close, it remains in a downward sloping pattern, and it’s tough to rule out further weakness technically speaking,” Newton cautioned.
Meanwhile, ETH’s fundamentals are similar to bitcoin’s, according to McGlone:
“Bullish fundamentals are intact, and technical guidance has been straightforward, with buyers benefiting around [USD] 2,000 and sellers at about [USD] 4,000. It’s a question of the duration of a consolidation period within an enduring bull market.”
He further stated that ethereum may be on the path to repeating last summer, meaning revisiting some USD 1,700. Then, when the weaker leveraged long positions were purged, said the analyst, there was a new high around USD 4,800 in November. “Ethereum approaching the lower end of its range has greater risks for shorts than longs,” McGlone concluded.
At 8:19 UTC, BTC is trading at USD 38,028, having appreciated 2% in a day and in a week. At the same time, ETH is changing hands at USD 2,843, after it went up 6% over the past 24 hours and 18% over 7 days.
Source: Cryptonews
