In the current week, we saw major cryptocurrency giving out a relief rally with BTC almost gaining a well over 17% compared to last week closing. One of the anticipated major factors for the relative run is the end of tax season being over on 17th April and so, investors are entering again to reap benefits from these lower levels. Furthermore, the announcement of “Bitcoin being permissible under sharia law” added to the charm.
Currently, the dominant BTC is consolidating over the comfort levels of the Bull-Runners in market, instilling a lot of confidence for traders and investors. We saw some of the top alternative cryptocurrencies rally over the ‘stability that the flag-bearer gained in the week’.
Adding to the above, we also saw the Managing Director of the International Monetary Fund (IMF), Christine Lagarde, praising of multiple benefits about cryptocurrency and she envisages a large scale shift from government issued currencies towards cryptocurrency.
Complementing into the account of positive factors, we also saw affluent people like George Soros and institutions like Barclays from the background of traditional financial markets entering cryptocurrency industry, thus, indicating the relative economical strength that these emerging market hold.
Bitcoin :
BTC is trading at $8,180 representing a gain of about 1% in last 24-hours.
Bitcoin Weekly Price Analysis
BTC post the climb above the long-ranged line of resistance has been consolidating between the range of $7,700 – $8,400.
Bitcoin Weekly Technical Price Analysis
If we look into the shorter time-frame of 4-hour, a small bullish pattern (cup & handle) can be seen as formed, which if broken over the above downtrend resistance can gain a momentum upto next level of overhead resistance depicting around $9,150 which is also 23.6% Fibonacci Retracement resistance of the fall from $19,666 – $5,920.
After the current strong consolidation, we expect BTC to have a momentum another pull-back rally from current levels treating 20 day EMA and baseline of the “handle” as immediate intra-day support.
We expect BTC to have a break-out soon to new levels of resistance and our Bullish views will be invalidated if it falls below it’s April lows of $6,400 as we expect it to be all time low for this quarter.
Ethereum:
ETH is representing a gain of 4% in last 24-hours currently trading at $535.
Ethereum Weekly Technical Price Analysis
Ether as per our last weekly analysis was considered as the most positive cryptocurrency and we expected ETH to gain a rally momentum upto the first overhead resistance seen in charts above at $600.
ETH currently is trading between the tight range of 20 & 50 day EMA with both acting as immediate support and resistance respectively. We still find ETH to continue with it’s positive pullback upto first overhead resistance of $600 and any break-out above the same will open up further avenues for ETH $745.
Our bullish view will be invalidated if ETH falls and closes below $450.