Pseudonymous analyst DonAlt tells his 466,800 Twitter followers that the strong recovery of both Bitcoin and Ethereum to close the previous week is likely a signal that the leading crypto assets are gearing up for big rallies.
According to DonAlt, BTC and ETH “look ready to absolutely giga moon.”
Looking closer at Bitcoin, the crypto trader believes that BTC is primed to take out resistance at $24,300.
“Selling into the third test of $24,000? Nah thanks, I’d rather chance it.”
Based on DonAlt’s chart, Bitcoin’s next resistance is at $32,200 should it break above the supply area of $24,300.
The widely followed analyst also highlights that the current Bitcoin rally is a sign that BTC is serving its one true purpose.
“Bitcoin was born out of anger at the banking system I’d love to see it thrive during uncertain times like this, proof that it’s capable of showing teeth. Inflation hedge, recession hedge are all memes. When banks steal your money, that’s when BTC is supposed to shine.”
Bitcoin was created in 2008 following the collapse of the housing market and the US banking system which forced the government to bail out institutions that are “too big to fail.”
In the past week, the US financial system witnessed the collapse of several banking institutions including Silicon Valley Bank and Silvergate Bank. Bitcoin responded by rallying from last week’s low of $19,736 to its current value of $24,130, an eye-popping 22% rally.
As for Ethereum, the crypto trader believes the leading smart contract looks bullish after rallying from last week’s low of $1,379 to recover support at $1,600.
“This is absolutely insane.”
At time of writing, ETH is worth $1,679, an over 5% surge in the past day.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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