101 Interactions, 2 Today
Ether is gaining ground, while Bitcoin is consolidating in a range below $50,000.
As a psychological barrier, Bitcoin (BTC) has seen some consolidation below $50,000. Several prominent altcoins have been soaring in price throughout this retreat, indicating that the alt season isn’t finished yet.
Meanwhile, Bitcoin’s price faces a critical resistance to break through, while Ether (ETH) has already cracked that resistance, hitting a three-month high vs BTC and preparing to surge towards the next resistance, which is expected to be around the all-time high.
The primary question is now whether this Ether breakout is a signal for Bitcoin to follow suit and break through the resistance barriers in September. Historically, September has been a corrective month, meaning that such a breakout may catch many traders off guard.
Critical resistance zone at $51,000 to break for Bitcoin
Bitcoin’s daily chart shows a consolidation between $44,000 and $50,000. This consolidation resulted in a significant breakout of cryptocurrencies across markets, with some already breaking their prior all-time highs.
For Bitcoin, the opposition is unmistakable. If BTC can break through this resistance, a large impulsive move similar to the breakout above $6,000 in the earlier portion of this cycle is likely.
The chart’s bearish divergence will be confirmed only when the recent higher low is invalidated and broken downward. The uptrend is officially over at that moment.
Currently, the market is consolidating after the rally from BTC’s July lows. In other words, the bearish divergence remains unconfirmed until Bitcoin loses the lower bound of the support range, which can be found at $44,000.
Total market cap eyes new highs
The overall cryptocurrency market capitalisation continues to rise, with higher lows and greater highs.
The resistance zone at $2.12 trillion is the critical breaker for the market cap to break through. Once that one is broken, additional gains towards new all-time highs are possible. This structure may also predict Bitcoin’s price trajectory, as it is now exhibiting even more bullish behaviour than BTC/USD.
Ether breaks above key $3,400 level
The daily chart for Ether shows a breakout above the crucial breaker at $3,400. This is a signal of strength for the entire market. The difference between Bitcoin and Ether right now is that ETH is hitting higher highs, while Bitcoin remains in a sideways range.
In this chart, the critical breaker for Ether is the previous resistance zone at $3,400. As long as that sustains support, continuation toward all-time highs becomes increasingly likely.
However, if a breakdown beneath $3,400 takes place, a potential bearish divergence comes into play, resulting in a correction to $2,600. Such a correction would also affect Bitcoin, which also has a few critical levels to watch as support.
Crucial levels to watch for Bitcoin
Bitcoin’s chart shows a small decrease since the recent high of $50,300. However, the chart also shows major support at $46,400, which may limit further declines below $44,000 and below.
Such a correction might affect the markets and cause the entire market to fall towards lower levels, potentially causing Ether to go below $3,400.
However, if Bitcoin persists in this range of $44,000 to $51,000 (on shorter timeframes, $46,400 is also an important level), the prospects for cryptocurrencies to surge will only improve.
Until Bitcoin doesn’t go vertical or has a significant impulse wave, altcoins are in a good position to outperform BTC in the short term, and that’s what the market is currently seeing.