Bitcoin and Ethereum Soar: Can the Bullish Trend Last?
• Bitcoin and Ethereum have seen a significant price increase recently, seeing Bitcoin fly toward the $25,000 mark and Ethereum briefly surging above $1,700.
• Both digital assets face potential downside risks despite the bullish trend they are currently displaying from a technical perspective.
• The charts suggest that if Bitcoin breaks through the $25,000 resistance level, it may continue to push past $26,200 and even potentially reach $27,000.
Bitcoin and Ethereum Price Increase
Over the past few days both Bitcoin and Ethereum have seen a significant price increase. Bitcoin is currently flying towards the 25K benchmark while Ethereum has briefly surged above 1700$. Despite this bullish trend both digital assets still face potential downside risks.
Bitcoin Technical Analysis
The leading digital asset successfully surged above the key resistance level of 22000$ and remained well above the 200-day simple moving average. The price briefly spiked into the 25000$ resistance zone surpassing the last swing high at 24246$. If Bitcoin does break 25000$, there is potential momentum to push it pass 26200$ and even 27000$. There are also some support levels in place such as 24250$, 23250$, 22500$ and 21400$.
Ethereum Technical Analysis
Ethereum has experienced a similar surge of almost 9%. Currently holding a value of 1680$, it could need to see some sort of catalyst to continue higher. From a technical perspective, ETH chart appears to display a bullish bias after bouncing off 1490$, which is a significant support mark at 38.2% Fibonacci retracement level.
Although both cryptocurrencies appear to be demonstrating strength from a technical perspective there are still potential risks involved with investing in them such as volatility or other external factors that can affect their prices. Therefore it is important for investors to ensure that they understand these risks before investing in either one of these digital assets.
Both Bitcoin & Ethereum appear to be on an upward trajectory for now but investors should always exercise caution when dealing with cryptocurrencies due to their volatile nature & other external factors that can affect their prices. It remains unclear if either currency will break through their respective resistances but should they do so there could be more upside ahead for both cryptocurrencies depending on how strong investor sentiment remains going forward.