Bitcoin (BTC/USD) Punching Through $50K, Ethereum (ETH/USD) Hits Another Multi-Month High

A rising tide floats all boats in the cryptocurrency market today with mid-to-high single-digit gains seen across the space. We have been positive on the market for weeks now and see no reason to change with chart set-ups continuing to flash bullish signals.

woman wearing white dress shirt

Image Source: Upsplash

The latest rally has been led by Bitcoin (BTC) which has broken back above $50k and looks set to move higher. Ethereum (ETH) continues to make fresh multi-month highs while Cardano (ADA) now trades in unchartered territory. Further down the list, there are double-digit 24 hours gains for a range of alt-coins including IOTA (MIOTA), Fantom (FTM), and Mina (MINA). As always the crypto market is vulnerable to short-term swings, so this needs to be factored in before making any trading decision.

Bitcoin (BTC/USD) Punching Through $50k, Ethereum (ETH/USD) Hits Another Multi-Month High

Data via Coinmarketcap

Bitcoin has pierced the $50k level today using the 50% Fibonacci retracement level just above $47k as a springboard. Bitcoin has stopped just short of breaking above the August 23 high of $50,506 but this level remains vulnerable, Above here Bitcoin will be back at levels last seen in early May, leaving the 61.8% Fibonacci retracement at $51,100 as the next target. There remains strong support all the way down to the $46,00 to $46,300 zone.

Bitcoin (BTC/USD) Daily Price Chart September 2, 2021

(Click on image to enlarge)

Bitcoin (BTC/USD) Punching Through $50k, Ethereum (ETH/USD) Hits Another Multi-Month High

After testing multi-month high resistance over the last couple of weeks, Ethereum finally made a clear break yesterday, pushing ETH back to levels last seen in May. The second-largest cryptocurrency by market cap had been leading the market higher this week, outperforming BTC by a reasonable margin. Ethereum is in heavily overbought territory, using the CCI shown at the bottom of the graph and this may slow any further move higher until this reading falls back into neutral territory. Aside from this, the recent uptrend channel is close by and a break back into this would give a further positive signal for ETH going forward, especially with all three simple moving averages in a positive set-up.

1 2
View single page >> |

Disclosure: See the full disclosure for DailyFX here.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.