- Bitcoin holds above a crucial support level that may allow it to rebound to new all-time highs.
- Likewise, Ethereum sits on top of a massive demand barrier that may absorb any downward pressure.
- If investor demand continues to rise, BTC could aim for $63,000 and ETH could aim for $2,500.
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Bitcoin and Ethereum began this week’s trading session on a negative note as each coin’s price dropped by more than 11%. Despite the losses incurred, the technicals suggest that these cryptocurrencies are primed to recover and aim higher.
Bitcoin Uptrend Remains Intact
Bitcoin made headlines over the weekend as it surged to a new all-time high of $61,950 on Mar. 13.
While the upswing was anticipated by the breakout from an inverse head-and-shoulders pattern formed on BTC’s 4-hour chart, the Tom Demark (TD) Sequential indicator forecasted a steep decline.
The technical index presented a sell signal in the form of a green nine candlestick after Bitcoin surpassed the $60,000 mark. A spike in downward pressure helped validate the bearish formation, leading to an 11.50% retracement on Bitcoin’s price chart.
Although BTC dropped to a low of $54,600, it quickly bounced off this level to regain $56,000 as support. Such market behavior suggests that high net-worth individuals and institutions took advantage of the downswing to add more tokens to their portfolios.
Just as Norway-based industrial investment giant Aker ASA and Chinese beauty app Meitu announced the purchase of $58 million and $18 million during early March’s correction, similar announcements could come out of the most recent dip.
On-chain analyst Willy Woo maintains that “there is a very strong case” that Bitcoin will not move below $50,000 again. Roughly 6% of the circulating supply was bought above the $1 trillion market capitalization, adding credence to the bullish thesis.
“With the strong buying we’ve seen [these] last 3…