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Bitcoin and Ethereum Bulls Aim for Higher Highs – Here Are the Critical Levels of Support and Resistance
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Bitcoin enjoyed a bullish price action over the course of the past seven days providing investors a weekly return of 2.52%.
Its price opened the week, July 6th, at a low of $9,072, but the bulls quickly stepped in allowing BTC to rise. Indeed, the flagship cryptocurrency entered an uptrend that saw it surge by 4.39% to hit a high of $9,470 two days later, on July 8th.
Despite the increasing demand, the $9,470 resistance level was able to reject Bitcoin from advancing further. Such rejection triggered a nearly two-day correction where BTC went down by 3.68%. By July 10th at 4:00 UTC, the pioneer cryptocurrency was trading at a low of $9,121.50.
This area of support was backed by a significant number of buy orders that helped Bitcoin rebound quickly. Right before the July 10th candlestick close, BTC had recovered $96 of all the losses incurred and was able to end the day at $9,288.39.
At that point, however, Bitcoin entered a consolidation phase that extended throughout the weekend. Its price was mostly contained within a $100 trading range between the $9,200 support and the $9,300 resistance level. The low levels of volatility prevailed and BTC closed the week at $9,300.70.
Ethereum generates a weekly return of nearly 7%
Last week, the smart contracts giant was able to overcome the lackluster price action seen at the beginning of July. As a matter of fact, Ethereum was able to provide a weekly return of 6.68%.
The high levels of speculation regarding the upcoming network upgrade, dubbed ETH 2.0, seems to have investors accumulating heavily in anticipation of the long-awaited staking rewards. This behavior is being reflected on Ether’s price, which opened Monday, July 6th, at $227.61 and quickly rose to a high of $249 by July 8th.
The sudden 9.40% upswing took many market participants by surprise while others saw it as an opportunity to exit some of their long positions. The mounting selling pressure pushed Ethereum down by 5.33% to a low of $235.73 on July 10th. As the day was ending this cryptocurrency began to recover and closed at $241.38.
The following day, July 11th, was marked by stagnation. Ethereum mostly traded between $238 and $241.37 without providing any clear signs of where it was heading next. However, volatility struck back on July 12th and Ether rose to $244.35 to then drop to $236 within one hour.
Sidelined investors appear to have taken advantage of the low price levels to get back into the market. The increasing demand saw Ether rise by 2.89% and close the week at $242.82.
The crypto market is poised to breakout
Given the high levels of correlation in the cryptocurrency market, it is reasonable to assume that a “rising tide lifts all boats.” While some of the lower-cap cryptocurrencies are surging, Bitcoin and Ethereum have failed to enjoy such price action. But a breakout might be underway.
From a long-term perspective, the most critical support and resistance levels for Bitcoin sit at $8,900 and $10,000, respectively. Meanwhile, Ethereum must close below $220 or above $250 to provide a clear roadmap of the direction of its trend. Once any of these hurdles breaks, investors will be given an opportunity to enter a clear short or long position.
Konstantin Anissimov, executive director at CEX.IO
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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