Market update: Bitcoin soars 12% ahead of halving event- a new peak on the horizon?

[MongiIG]

Bitcoin's recent 12% surge eyes a record high pre-halving, as Ethereum lags. Coinbase shares soar, mirroring crypto market's upbeat momentum.

 

Source: Bloomberg

 

Forex Shares Bitcoin Coinbase Cryptocurrency Ethereum

Written by: Nick Cawley | Analyst, DailyFX, London

 

Publication date: Wednesday 27 March 2024 06:04

Bitcoin has rallied by around 12% since Sunday’s opening print, as demand for the largest cryptocurrency by market cap continues to increase prices. A technical, bullish, break of a short-term descending channel now suggests that Bitcoin will attempt to make a fresh record high in the near-term and likely ahead of next month’s halving event.

Any pullbacks will find initial support around $69k before just under $65k comes into focus. The Average True Range (ATR) reading is at a multi-month high, while the CCI indicator shows Bitcoin nearing overbought territory. The chart set-up suggests Bitcoin will move higher over the coming days but a short-term turn lower cannot be discounted.

Bitcoin daily price chart

 

Source: TradingView

Ethereum is also pushing higher but continues to lag Bitcoin. While Bitcoin has already made a new ATH, Ethereum remains around 30% its peak and is struggling to regain its mid-March multi-month high of around $4,100. The proposed Ethereum spot ETFs look like they will not be approved by May 23rd – the Van Eck ETF deadline date – and this is weighing on the cash Ethereum price. With the ETF potential approval being pushed further out, Ethereum may struggle to match Bitcoin’s performance over the coming weeks. Any further move higher will likely be kept in check by the mid-March high.

Ethereum daily price chart

 

Source: TradingView

Coinbase, the largest cryptocurrency exchange in the US continues to benefit from the increased interest, and turnover, in the space. Coinbase shares are back at highs last seen in December 2021 and remain a proxy for overall crypto-market performance. Coinbase is trading around the 61.8% Fibonacci retracement of the May 2021 – January 2023 sell-off and targets the 78.6% retracement level at $343. Support on the weekly chart is seen at the 50% retracement level at $230.

Coinbase weekly price chart

 

Source: TradingView

 

 

 

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

[tradinglounge]

Great Article. I have been Dollar Cost Averaging from 10k. Happy Hodler !

[Imam]

There is gonna be a slight deviation in the eth chart . Since it rejected without grabbing liquidity . It could go to my buy zone . First TP 3364 . Lower the better 🌺 I’d repeat it a 1000 times not selling before 9k .

[tradinglounge]

Bitcoin Elliott Wave current pattern in the 70 - 65 range is a corrective wave 4 and will complete in a few sessions.