A closely tracked crypto analyst says Bitcoin (BTC) and Ethereum (ETH) are gearing up for the next leg of their respective rallies.
In a new video, Kevin Svenson tells his 112,600 Twitter followers that both Bitcoin and Ethereum are flashing bullish signals on the lower timeframes.
“It seems like [BTC and ETH] are going to break out. It seems like it’s going to happen. Bitcoin is really low on price, looking like it wants to pop. Ethereum leading the way, nearly about to break out again [and] putting in a nice higher low.”
The crypto strategist is also sending a warning to traders who plan to short sell Bitcoin and Ethereum.
“I think it’s really dangerous to try to short into momentum. You can’t place short order when your EMAs [exponential moving averages] are showing you the momentum is up.”
Looking closer at Ethereum, Svenson says the 20-day EMA is about to move above the 100-day EMA, indicating that momentum is shifting to the side of ETH bulls.
“Since the end of 2021, these two moving averages have 99% of the time just been pointed down… What I find interesting is obviously we’ve had a quick shift here in the short-term yellow [20] EMA, but it’s about the cross the 100 [EMA] on the daily. This is pretty significant I would say, fairly significant.
The 100 EMA had already flattened out and now is starting to point up. Momentum is really shifting right now, really shifting up.”
According to Svenson, the cross between the two EMAs could trigger a rally to Ethereum’s macro resistance at $2,500.
“We get this cross. Momentum picks up heavily. We could pop up to $2,500.”
Although Svenson is near-term bullish on Ethereum, he warns that ETH could tumble and resume its downtrend after hitting its diagonal resistance.
At time of writing, ETH is swapping hands for $1,910 while BTC is trading at $24,184.
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Featured Image: Shutterstock/Marco de Benedictis
