The cryptocurrency market is absolutely BOOMING right now...there is no other way to describe it. The entire industry’s total market cap first surpassed the $1 trillion level in early January 2021. Since then, it has grown by another $500 billion, bringing the total crypto market cap to $1.5 TRILLION;
Source: CoinGecko
With Bitcoin and Ethereum surging, it is time to take a look at where the next stops potentially lie for the top two ranked cryptocurrencies.
Bitcoin (BTC) Price Analysis
BTC/USD - DAILY CHART
BTC/USD - WEEKLY CHART
What Has Been Going On?
The growth of Bitcoin has been truly outstanding.
Bitcoin is up by a total of 35% over the past month of trading. The cryptocurrency had reached a high in early January 2021 at $42,000, and it went on to stall at this level. From there, it started to head lower as it consolidated within a descending triangle pattern.
The floor of this triangle was around $30,000, which was further bolstered by the .618 Fibonacci Retracement level. It continued to trade within the confines of this consolidation pattern until the beginning of February, when it finally managed to break toward the upside of the triangle.
It started to push higher after breaking out until it managed to penetrate the $42,000 level on Monday 8th February. It continued further above $42,000 and eventually found resistance at $48,981 (1.618 Fib Extension). It had spiked higher but was still shy of the $50,000 level.
With the incredible growth in the market, Bitcoin should likely break $50,000 sometime this coming week.
Where Are The Next Stops?
Bullish Levels:
- $50,000 - Magical Number.
- $51,870 - 1.618 Fib Extension - blue.
- $53,000 -
- $54,373 - 1.272 Fib Extension - purple.
- $55,000
- $57,121 - 1.414 Fib Extension - purple.
- $60,000 -
- $61,192 - 1.618 Fib Extension - purple
Looking further on the weekly charts;
- $66,030 - 1.414 Fib Extension - blue
- $68,745 - 1.414 Fib Extension - lilac
- $70,000
- $72,000
- $74,100 - 1.618 Fib Extension - blue
- $78,000 - 1.618 Fib Extension - lilac
- $80,000
Bearish Levels:
- $45,000 -
- $44,222 - .236 Fib
- $41,388 - .382 Fib
- $40,000 -
- $39,000 - .5 Fib
- $36,676 - .618 Fib
Fundamental Analysis Note:
A lot has happened on the fundamental side since my last post on Bitcoin - far too much to cover in just one post; it probably needs an entire post on its own.
First and foremost, we should begin with the news that drove Bitcoin above the previous consolidation pattern - Tesla buying $1.5 billion worth of Bitcoin;
Source: EconomicTimes
This was a long time coming, and Elon had even shown hints of it by changing his Twitter bio to include #Bitcoin toward the end of January. The fact that such a large company is prepared to buy Bitcoin shows just how far Bitcoin has come in the minds of the large corporations and institutions - remember, Tesla is the 7th largest company on the planet with a market cap of $783 billion.
With Tesla buying up Bitcoin, many analysts are expecting all of the other top 10 ranked companies to start entering the cryptocurrency space, including Apple, Microsoft, Amazon, and Facebook - those are still yet to come.
Secondly, the first Bitcoin ETF has finally been approved;
Source: CoinTelegraph
The ETF was approved by the Ontario Securities Commission and was put forward by Accelerate Financial Technologies. Although this is based in Canada, it should help for a push for a US Based ETF in the near future.
Moving on, you might remember that PayPal had finally changed their tune regarding cryptocurrency in October after they started accepting crypto payments;
Source: BBC
Well, it seems that this has started a new trend as Uber is considering to jump in on the action now and start allowing their customers to pay for rides in Bitcoin;
Source: CryptoGlobe
With the latest Bitcoin surge, the market cap for the asset has managed to climb above $900 billion. This now means that it is bigger than JPMorgan Chase, Bank of America, and Wells Frago...combined;
Source: Companies MarketCap
Now that these banks have finally started to recognize the power that cryptocurrency has, it seems that both Morgan Stanley and JP Morgan are starting to show their interest in getting into the cryptocurrency space;
Source: CoinTelegraph
Ethereum (ETH) Price Analysis
ETH/USD - DAILY CHART
ETH/USD - WEEKLY CHART
What Has Been Going On?
Ethereum has also seen some wonderful price action this month after being able to surge by a whopping 63%. The cryptocurrency was trading within an ascending triangle pattern toward the end of January as it struggled to break the resistance at $1,400.
This breakout finally occurred in February, which allowed Etehreum to surge higher to meet the current $1,850 resistance level.
You can see that the coin is now also trading inside an ascending price channel as it battles with the upper boundary.
Where Are The Next Stops?
Bullish Levels:
- $1,850 - 1.618 Fib Extension.
- $1,900
- $2,000 - 1.618 Fib Extension - green
- $2,050 - 1.272 Fib Extension - purple
- $2,161 - 1.414 Fib Extension - purple
- $2,262 - 1.414 Fib Extension - orange
- $2,321 - 1.618 Fib Extension - purple
- $2,500
Looking further ahead on the weekly charts;
- $2,843 - 1.618 Fib Extension - red
- $2,955 - 1.618 Fib Extension - green
- $3,000
Bearish Levels:
- $1,700 -
- $1,600 -
- $1,560 - .236 Fib.
- $1,500 -
- $1,424 -
- $1,300 -
- $1,200 - .5 Fib
- $1,050 - .618 Fib
- $1,000.
Fundamental Analysis Note:
Although there is a lot to talk about here for Ethereum, I will keep this quite short.
The major news is the fact that Ethereum Futures went live on the CME exchange this week, allowing for institutional investors to start positioning in Ethereum;
Source: Business Insider
In addition to this, it seems that institutions are now starting to cast their gaze toward Etheruem as their second potential cryptocurrency investment. Data from Glassnode suggests that Grayscale investment has increased their Ethereum holdings to 195,000 ETH. They also mentioned that they purchased 53,000 ETH in just one day last week…
