Bitcoin hits 2-month resistance amid 'most hated' stock rally

Bitcoin hits 2-month resistance amid ‘most hated’ stock rally – Mail Bonus

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Bitcoin (BTC) broke to the top of a stubborn trading range on August 11 as a highly volatile exchange rate gripped risk assets.

BTC/USD 1 hour candlestick chart (bit stamp). Source: TradingView

Bitcoin recovery warnings increase near $25,000

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD hit a high of $24,750 on Bitstamp, marking its best performance since June 13.

The pair had attempted several breaks at the top of the range in recent weeks, all failing despite strong selling pressure.

New US inflation data released this week provided a long-awaited catalyst for change, but Bitcoin and altcoins rose in line with stocks as the consumer price index (CPI) for July indicated that inflation had peaked.

On August 10, the day of the issue, the S&P 500 and Nasdaq composite rose 2.1% and 1.9%, respectively. BTC/USD, on the other hand, saw a daily candle of around $900.

Rather than pile on the optimism, however, market commentators were anything but bullish when the dust settled. The attitude, investor Raoul Pal pointed out, was to treat the rise in the CPI as a black sheep.

“Well, this seems to be one of the most hated sessions I’ve seen in a number of years in stocks,” he said. said Twitter followers in a separate thread.

Still, Pal insisted there was a “very good chance” stocks had fallen in June.

Predicting major changes in crypto, meanwhile, popular trader and analyst Il Capo of Crypto stuck with $25,500 as a likely maximum target before a new downtrend begins.

“$BTC pumped almost 40%. Huge potential, Retrace coming soon. Buy The Dip,” Jibon’s fellow account continued in further comments on Twitter.

Slightly hopeful Crypto Tony meanwhile said that hodlers would be “in for a treat” if the range held high.

Eyeing potential similarities between the Bitcoin chart now and March 2020, BTCfuel added that further breakouts are not on the cards.

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Doubts arise about Ethereum array

A stellar performance among altcoins put the largest altcoin Ether (ETH) firmly in the spotlight after ETH/USD surged over 11%.

Related: Bitcoin dominance hits 6-month low as gauge heralds new ‘alt season’

The pair continued to rise on the day, breaking above $1,900 for the first time since June 6 and now approaching the psychologically important $2,000 mark.

CPI momentum increased in the already exciting Ethereum market, as the Goerli testnet merger – a key preparatory step for the full merger event in September – was successfully completed.

“Since the beginning of this bear market rally, in mid-June, Ethereum is gaining ground in terms of trading volume compared to Bitcoin. In recent days, Ethereum and Bitcoin supremacy have even crossed over,” Maartuun, an analyst at on-chain data platform CryptoQuant, wrote in a blog post on August 10.

Maartuun cautioned that historical precedents still do not favor a sustained increase over crypto if this continues under the leadership of ETH.

“It is clear that Ethereum is very popular on exchanges, because it is gaining dominance.” It makes sense because of the upcoming 2.0 fusion,” he continued.

“However, from my 5 years of experience in the crypto market, rallies led by Ethereum are usually not the healthiest for the market. As you could already read in my previous analysis, I am very conservative. Especially because Ethereum has already to. > 100% movement from lows.”

ETH/USD 1-Day Candlestick Chart (Binance). Source: TradingView

The views and opinions expressed here are solely those of the authors and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move involves risk, you should do your own research when making a decision.

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