Blackrock’s application to the SEC for a Bitcoin ETF has caused Bitcoin’s volatility to return. After months of low trading, the recent rally pushed Bitcoin above $30,000. While Ethereum is still experiencing rejection from a significant resistance level, Bitcoin is forming a new pattern that could potentially lead to a breakout.
According to a new YouTube video by Crypto World, Bitcoin is facing an important resistance level of around 30.5K, which needs to be broken for a confirmed breakout. Ideally, a weekly close above $31,000 would confirm the breakout.
Looking at the daily Bitcoin chart, he observed a short-term cool-off in the price due to the overbought RSI (Relative Strength Index) reaching into overbought territories. This usually indicates a temporary cooldown or a slight pullback in the price. A reset in the RSI would provide room for an upside move. If Bitcoin sees a confirmed breakout above $31,000, the next target would be around $37,000.
If the support is broken, we could see a move down from $28.8K to $28.9K. Conversely, a breakout above the resistance could lead to a move toward 32,000.
Ethereum price analysis:
Shifting his focus to Ethereum, the ETH price is still trading above a support range that was previously resistance. This support range lies between $1,770 and $1,820. However, in the short term, Ethereum has experienced a loss of bullish momentum due to a rejection from the golden pocket, an important Fibonacci level between $1,930 and $1,940.
He said that the likelihood of further reduced bullish momentum and the expectation of either sideways price action or a slight pullback in the short term. Support levels can be found around $1,820 and $1,750 to $1,780.
