- Bitcoin sits on top of a significant support wall that may allow it to rebound towards new all-time highs.
- Ethereum’s upcoming protocol update could be the catalyst that ignites another bull rally.
- XRP remains one of the most popular cryptocurrencies in Asia Pacific despite its legal uncertainty in the U.S.
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Extreme volatility levels in the cryptocurrency market have led to massive liquidations over the past few weeks. Despite the significant losses incurred across the board, data shows that Bitcoin, Ethereum, and XRP are about to resume their respective uptrends.
Bitcoin Prime for New All-Time Highs
Bitcoin took a 12% nosedive in the past 36 hours after rising to $52,700. The downswing added credence to the thesis that BTC is creating an inverse head-and-shoulders pattern on its 4-hour chart.
Coincidentally, the Tom Demark (TD) Sequential indicator recently presented a buy signal within the same time frame. The bullish formation developed as a red nine candlestick, suggesting that Bitcoin is bound for a bullish impulse.
If validated, BTC could rise toward the head-and-shoulders neckline at $52,000 to complete this technical pattern’s right shoulder. A further spike in buying pressure around this resistance barrier could lead to a 17% breakout that sends Bitcoin to $61,000.
Microstrategy’s announcement that it once again bought the Bitcoin dip, adding another $10 million to its treasury, suggests that momentum is indeed building up for the uptrend to resume.
That notion is further validated by the rising number of new daily addresses joining the network. On-chain analyst Willy Woo maintains that Bitcoin’s user count is “growing at insane rates,” similar to trends seen during the 2017 bull market.
As long as Bitcoin continues to hold above $47,000, all of these fundamental developments will continue to push prices higher.
Rafael Schultze-Kraft, co-founder and CTO at…