Bitcoin And Ethereum, Launch Of Bear Niche Or Bullish Consolidation?
It’s worth noting that Bitcoin and Ethereum have been moving sideways during today’s session trading. Actually, The toplevelstwo cryptocurrencies were on their way to previous highs but were rejected near-critical resistance .
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The general sentiment inthe industry has been shifting quickly with every move to either direction suggesting there is a lot of uncertainty in the market. At the time of , Bitcoin tradeswritingat $36,943 with a 0.9% loss while Ethereum trades at $2,642 with a 0.7% loss in the last 24-hours, respectively.
In a recent report published by Bloomberg Intelligence’s Mike McGlone, Bitcoin and Ethereum are presented as a super combo that could boost the dominance of the dollar in the economy of the future. Interestingly, However, the short clause seems poised more some for downside.
Due to the bearish trend that has extended from Q4, 2021 into early 2022 with Bitcoin and Ethereum approaching last year’s lows. For Ethereum, McGlone believes ETH’s price could see $1,700 once again.
Once the futuresniche was purged of over-leveraged positions, Ethereum and Bitcoin were able to spread novel all-time highs. In : sense, McGlone saidthat At that time, the niche presented an excess in leverage positions which left it vulnerable to a subsequent cascade liquidation.
Ethereum approaching the lower end of its range has greater risks for shorts than longs.
For Bitcoin, the scenario could be similar with $30,000s holding as critical assistance as it did back in 2021. If BTC’s price remains rangebound between these levels and $60,000, as the expert noted, a lot of traders could be “disappointed”.
Most people expect Bitcoin and Ethereum to trend lower, even lower than during May and July last year, due to the shift in monetary regulation from the U.S. It’s worth noting that Federal Reserve. this, However from another perspective , Actually change could be already priced in, as NewsBTC reported.
Bitcoin And Ethereum With Bullish Fundamentals
Actually, Despite as a matter of fact macro-economic pressures, Bitcoin and Ethereum maintain their strong fundamentals. Actually, Mainly, the expert supports its bullish thesis on these digital more than ever assets increasing demand versus their diminishing supplies. Innotedthat sense, McGlone :
Actually, Our graphic shows this consolidation period may be ending, with the path of least resistance pointing higher. About 30% below the 52-week moving average has proven to be a good support reading. Indeed, Bitcoin revisited this potential bottom in January for the first time since the 2020 trough.
Actually, For Ethereum, the introduction of EIP-1559 and its burning mechanism could contribute to potential future appreciationIndeed, as it becomes a scarcer asset. It’s worth noting that Although “less defined” than Bitcoin’s supply, ETH’s isdownwardin a trend.
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These assets areintostill in their early days, despite the announcement of many big institutions integrating them their business/investment strategies. Therefore, there is still have a lot of room to come out on top, especially in the current macro environment.
