Traders should focus on Bitcoin (BTC) and Ethereum (ETH) right now, according to two popular crypto analysts.
Writing in the latest TechnicalRoundup newsletter, the pseudonymous traders known as Cred and DonAlt say the top two crypto assets by market cap both still look good after recently surging to new all-time highs [ATHs].
“The market retested and closed above the all-important weekly support at $58,000. The technicals are bullish.”
According to CoinGecko, Bitcoin is trading at $62,467 at time of writing, down about 7% from its October 20th all-time high of $67,276.
Ethereum is trading at $4,572 at time of writing and is down about 2% from its ATH of $4,674, which it hit on Wednesday.
In terms of BTC’s ‘worst case scenario,’ Cred and DonAlt say that if the breakout doesn’t stick, traders should look for strength around $50,000. If Bitcoin were to lose that level, they think BTC’s uptrend would be over.
But they think Bitcoin looks strong, and recommend traders look for clean, round numbers like $70,000 or $80,000 in terms of targets for a move higher. The analysts also note traditional markets aren’t presenting Bitcoin with volatility risk.
“The S&P 500 is steadily making new highs, so the likelihood of correlated weakness as a result of traditional markets tumbling is reduced. While the lack of momentum has some participants concerned, it’s hard to be bearish above support and at the all-time high. We will change our minds if the evidence changes.”
DonAlt and Cred are less bullish on altcoins in the short term, however.
“Our attitude towards altcoins is lukewarm at best given the majors are on the move. We expect Bitcoin and Ethereum volatility to create a liquidity vacuum of sorts among altcoins, at least in the short term.
Long altcoins = short Bitcoin/Dollar (and Ethereum/Dollar) volatility. Therefore, in our view, positioning for strength in altcoins as the majors are making new all-time highs is not the most attractive bet in the market.”
Read the full newsletter here.
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