Heading towards the end of the week, Bitcoin has rallied. The surge ends a week-long sideways action. At its $6,800 range, the next move was critical, sending Bitcoin either towards $7K or $6K. The bulls have won the struggle taking charge of Bitcoin for now. But their win remains shadowed by that of Ethereum bulls.
Ethereum continues to outperform Bitcoin. The last 24 hours have been the same as it rallied by nearly double how much Bitcoin gained. In 2020, Ethereum has been leading the market and now even as it approaches critical resistance, it shows no sign of slowing down.
As Bitcoin and Ethereum continue to soar, they have inspired the rest of the market to follow. Nearly all top coins are enjoying gains ranging from 2% to 10%. These cumulative gains have now seen the total market cap climb back above $200 billion.
Since the crypto market began rallying, Bitcoin has climbed as high as $7,100, failing to reach its recent high of $7,200. This will be key to reach as failure will see a retracement send Bitcoin back below $7K. A successful breakout will see a new target at $7,800 before finally reaching $8K in the coming weeks.
Ethereum is also facing a major resistance at $175. This is it’s current high and a break above this will lead to more pumping and potential for the reach of the $200 highs in a couple of weeks.
As we reported, investor sentiments remain bullish in the long term but market patterns still suggest a short term dump. The spike will see some gain more confidence that the market is headed up while others will remain pessimistic that this is a dead cat bounce.
For the green wave to continue, Bitcoin needs to retest its recent high of $7,200 and break above. Failure to reach or break this will lead to a violent retracement and a possible test of the $6,500 support level.