Crypto has seen a more than a modest increase in prices over the last month, which many analysts have been predicting for some time to be a bull run after a long bear market. There is a positive sentiment which has led to a general uptrend, this has been fuelled by recent events. Both Ethereum and Bitcoin have exceeded expectations moving past resistances one after the other. Let’s now take a deeper look into the underlying sentiments along with an in-depth technical analysis.
After a steady decline from Ethereum’s previous high on February 23 of $157, the last few days showed price recovery but the momentum might be short lived. Ethereum was predicted to reach a maximum price of $135(short term resistance), but this week’s rally had strong momentum which helped Ethereum reach $137. Further analysis reveals that it will be really hard for Ethereum to breach 139. On the other hand, if new market events trigger more buying we could see the price going well above 140 as there is generally a positive sentiment surrounding crypto recently. But analysis with current data suggests a decline in price.
After a few disappointing days, Bitcoin has made a solid comeback. Bitcoin was predicted to peak at $3860 but the bullish momentum kept the price rallying helping it breach $3900. Further analyses reveal that prices could rise in the coming days, the climb, however, will happen slowly. It’s highly likely that Bitcoin could reach $4000 in the short term, correction is highly unlikely at this point although there is a slight chance of price falling to the $3860 range. The bull rally is happening on the back of much good news that has hit the market in the last few days including Starbucks making an announcement of taking up a significant stake in the Baakt crypto platform and Binance launchpad launching two very successful ICOs.
Technical analysis relies on the assumption that all information is already reflected in the price of a security, which means that the analysis of that price is all that matters. By looking at price patterns and statistics, technical analysts try to gauge the market’s overall sentiment and determine where prices may be headed. This is not accurate all the time, even though technical analysis can provide a reference as to where the market is headed, they are more often proven wrong especially in the case of volatile assets like crypto. And this can be clearly seen by how often the resistance and trends predicted to change, especially for long term investors who are more concerned about the health of underlying assets short term insights provided by technical analysis is something to be ignored.
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