After a positive Nvidia earnings report, and seemingly comfortably absorbing the selling pressure from the Genesis Grayscale $1.6 billion of $BTC, bitcoin is returning to knock at the door of $52,000 once again. Will it open this time?
Bitcoin supply dwindling
More and more $BTC is being taken off the supply shelves. Bitcoin on exchanges is dipping drastically, OTC desks are struggling to source it, and Genesis is selling about $100 million a day of its $GBTC, which means that this particular selling pressure will only last another few days.
Source: Coingecko/Trading View
The $BTC price action is quite telling. The last week or so has seen the price returning to the $52,000 resistance level. Rejections from here (blue line) have been bought back up within the day, and the wicks going down to the white trend line are testament to this. An ascending triangle is also forming between resistance and the trend line.
It is therefore looking more likely that another breakout is on the cards, rather than a big rejection. If the breakout does indeed happen, a rise to a target around the $57,000 level becomes a probability.
Ethereum outperforming bitcoin
Source: Coingecko/Trading View
Bitcoin’s number one competitor in the cryptocurrency space is ethereum, and this has now started to outperform $BTC. Up more than 2% on the day’s opening price, $ETH is currently about to make a new local high.
The upper trend line of the channel is just above the price, and this also coincides with resistance, so breaking through here is not an easy task for $ETH. However, if it rides the positive green wave that is flowing through the crypto market, this can certainly be a possibility.
Source: Coingecko/Trading View
Looking at $ETH against its $BTC trading pair, it can be observed that the breakout has happened, but, currently at resistance, it remains to be seen whether this becomes a confirmed breakout, or just another fake out.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.