Bitcoin price is trading sideways around a key resistance level, implying that a significant change is imminent. While XRP slacks, Ethereum is already exhibiting signs of a comeback rally. Some altcoins have already risen, demonstrating their strength and hope.
For nearly a week, the price of bitcoin has remained stalled around $42,000. After dipping into the liquidity pool for the third time below $41,492, the major crypto could create a bottom. This swing low could set off an uptrend that extends above the previously indicated support floor.
After a 10% gain, the subsequent rally tries to retest the $45,678 resistance level. The rally might extend to $48,027 or the 200-day Simple Moving Average (SMA) around that level in some situations.
If the aforementioned optimistic scenario comes to fruition, BTC might gain 15% in total.
While the price of Bitcoin appears to be rising, a breach of the liquidity pool’s lower limit at $39,057 will result in a lower bottom, undermining the bullish argument. This development could push BTC below $30,000 in the near future.
The price of Ethereum is following Bitcoin’s lead and is currently hovering around $3,153. ETH has rebounded above it, but there’s a risk it’ll cut through it to generate another swing down, completing the bottoming process.
This development in ETH is projected to set off an upswing to $3,629, or a 15% increase, closely tracking the rise in BTC. In other situations, the rally may be able to break through immediate resistance and make a push for the $3,852 barrier and the liquidity that lies above it. If the optimistic scenario pans out, ETH might earn 22 percent in total.
Regardless of the optimism, Ethereum must break beyond the $3,431 200-day Simple Moving Average (SMA) to complete its 22 percent increase. If the rally fails, the price might fall by 6% to the $2,963 support level.
A closing below this barrier on a six-hour candlestick will result in a lower low, undermining the bullish argument. This swing low could signal the start of a downtrend that takes ETH to $2,764.