Uncertainty Despite Bitcoin, Ethereum Rebound

Key Takeaways Bitcoin has seen its price rebound by nearly 17% in the past 24 hours. Likewise, Ethereum reclaimed $2,000 as support after going as low as $1,700.  Nevertheless, BTC and ETH now both face stiff resistance ahead.  Bitcoin and Ethereum kicked off Friday’s trading session in a positive posture. While the technicals show bullish…

Key Takeaways

  • Bitcoin has seen its price rebound by nearly 17% in the past 24 hours.
  • Likewise, Ethereum reclaimed $2,000 as support after going as low as $1,700.
  • Nevertheless, BTC and ETH now both face stiff resistance ahead.

Bitcoin, Ethereum started Friday’s trading session with a positive outlook. Although the technicals are showing bullish signals, it is advisable to be cautious until there is a clear resistance break.

Bitcoin and Ethereum Bounce

More than $30 billion has flowed into the cryptocurrency market over the past 24 hours, triggering a significant rebound across most digital assets.

Bitcoin bounced off the $26,660 level to reclaim $30,000 as support. The sudden upswing came as a surprise to many as investors remain fearful over the stability of the stablecoin market following Terra’s UST collapse. The flagship cryptocurrency is still in a good position for future gains.

The Tom DeMark Sequential indicator (TD) signals a buy on Bitcoin’s daily charts. A bullish formation formed as a red nine candlestick. This is an indicator of a one-to four daily candlesticks increase. To confirm the optimistic outlook, BTC must slice through the $31,225 resistance level.

Breaching such a critical resistance area could encourage sidelined investors to reenter the market, pushing Bitcoin to the next interest zone at nearly $35,000.

Bitcoin price chart
Source: TradingView

Ethereum also looks primed for a bullish impulse after making a U-turn at the $1,700 support level. The second-largest cryptocurrency by market cap has gained nearly 450 points in the past 24 hours, with the TD Sequential anticipating more upside. After ETH hit oversold conditions, this technical indicator flashed a Buy signal on ETH’s daily chart.

It is worth noting that the $2,260 to $2,500 price range would likely serve as a stiff resistance level for Ethereum. Technicals expect further gains but ETH must clear this price level in order to confirm its optimistic outlook. If successful, ETH could advance to $2,700 or even $3,000.

Ethereum price chart
Source: TradingView

While the cryptocurrency market appears to be gaining steam for a relief rally, it is imperative to understand that Terra’s death spiral has generated a great deal of uncertainty, and its impact may not yet be fully understood. As fear spreads, market participants may be encouraged to profit from a possible rebound and exit some of their positions. Cryptos could be at risk of another downturn if there is a significant increase in selling pressure.

Under such unique circumstances, investors should watch out for a sweep of the recent lows that could send Bitcoin to $21,000 and Ethereum to $1,400.

Disclosure: At the time of writing, the author of this piece owned BTC and ETH.

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