How High Can Bitcoin (BTC) and Ethereum (ETH) Soar Before the Christmas Rally?

How High Can Bitcoin (BTC) and Ethereum (ETH) Soar Before the Christmas Rally?

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As of November 11, the recent trends in the crypto market show a mix of resilience and optimism. Despite the usual ups and downs, investors are showing a growing sense of bullishness, as seen in the market's consistently upbeat performance. Surprisingly, even Federal Reserve Chair Jerome Powell's hint at a potential March rate hike, aimed at reining in inflation to the 2% target, hasn't dampened spirits. The market remains robust, thus challenging typical cautious sentiment.

Zooming into individual cryptocurrencies, Bitcoin (BTC) is now trading around $37,000. Ethereum (ETH), despite a minor 2% dip, is maintaining a position just over $2,000, having recently surged to a seven-month high of around $2,130, spurred by BlackRock's interest in an Ethereum ETF. Amidst these giants, ScapesMania (MANIA) emerges as a promising presale project with potentially high returns and perceived predictability in this market, setting it apart as an investor favorite. The global crypto market cap has reached $1.4 trillion, with the market fear and greed index indicating a strong "greed" sentiment at 77.

However, the crypto world remains a realm of unpredictability: every coin, from BTC and ETH to newcomers like MANIA, is subject to potential bullish and bearish turns.

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Ethereum (ETH) ETF Swings Investor Sentiment Away from Bitcoin (BTC)

However, amidst this bullish landscape, a note of caution resonates from notable crypto analysts. A prominent crypto trader known as Donalt has issued a warning about the cryptocurrency market, particularly regarding Bitcoin (BTC). He expresses a loss of full confidence in the original cryptocurrency, attributing this change in sentiment to the recent Ethereum ETF filing, which he believes might divert investment inflows away from BTC to ETH. 

Donalt argues that this shift turns Ethereum (ETH) into a more attractive investment, which alters his previously bearish stance on the altcoin king and makes him less bullish on Bitcoin (BTC). He suggests that the overlap in the buyer base for BTC and ETH typically benefits from a clear narrative focusing on one over the other. However, the current situation, where both are vying for attention, makes the market riskier in his view. 

Recently, Donalt sold a significant portion of his BTC holdings, which he had bought between $27,000 and $27,500, at a profit of around 40%. He also hints at having taken a short position in Ethereum (ETH), believing it might outperform even if Bitcoin (BTC) struggles.

Bitcoin (BTC) Technical Analysis

In the realm of technical analysis, Bitcoin (BTC) is currently hovering around $37,000, which shows a 6% increase over the past week. Despite this recent uptick, its 24-hour trading volume has seen a significant decrease of 33%, hinting at a possible decline in market activity. This current position of BTC, placed between its first support point at around $36,700 and the first resistance point near $37,750, is critical in determining its short-term trajectory.

Source: TradingView

From a bullish viewpoint, Bitcoin (BTC) is flirting with the possibility of an upward breakout. Should it decisively push past the immediate ceiling of $37,750, the doors could swing open for a spirited climb towards higher resistance levels – first at around $38,150, and then potentially reaching for the $38,800 mark.

On the bearish side, the asset's immediate support lies near $36,700. A break below this could lead to testing further supports at $35,971 and $35,571, crucial levels that could determine the strength of the bearish momentum. If these levels fail to hold, BTC might face a steeper decline towards $34,600 and even $32,300. 

Further enriching this analysis are the various moving averages and MACD indicators. The recent crossing of the price over the 9-day moving average at around $35,584, followed by a stall, adds an extra layer of complexity. Additionally, the 3-10-16 day MACD moving average stalling at $32,265 provides a longer-term perspective on potential trend changes.

Ethereum (ETH) Technical Analysis 

Ethereum (ETH) has shown a 11% increase over the past week, an indicator of bullish sentiment. However, a notable 55% decrease in trading volume in the last 24 hours indicates a reduction in market activity, suggesting a potential shift in investor sentiment or market dynamics. The technical position of ETH is now framed by key support and resistance levels, crucial for predicting its next moves.

Source: TradingView

In a bullish perspective, the asset's immediate challenge is breaching the first resistance point at $2,135. Overcoming this barrier could open the path to higher resistances at $2,174 and potentially $2,213, aligning with the 3-10 day MACD oscillator stalls. This scenario suggests a robust upward trend, with the key milestones being the 1-month and 13-week highs at $2,136. Surpassing these levels could firmly establish a bullish trend.

Conversely, a bearish outlook becomes more plausible if Ethereum (ETH) drops below the second support level at $2,019. The subsequent key levels to watch are the third support point near $1,981 and the moving average crossover points, particularly at $1,914 and $1,698. A breakdown below these levels could trigger a slide towards the 1-month and 13-week lows of $1,523, intensifying bearish pressure. 

These numbers represent significant historical pivot points for ETH, and their breach in either direction could dictate the crypto's trajectory in the short to medium term.

Closing Thoughts

In the dynamic crypto market, Bitcoin (BTC) and Ethereum (ETH) stand out amidst the current market optimism. The former shows resilience, while the latter stays strong, spurred by institutional interest. This market vitality is mirrored in a global crypto market cap but is tempered by experts like Donalt, who caution against potential shifts in investment from BTC to ETH, underscoring the unpredictability of the market.

The technical analysis of both Bitcoin (BTC) and Ethereum (ETH) reflects a market at a crossroads. The BTC price teeters on a fine line, balancing the potential for an upward surge against the risk of slipping beneath crucial support levels. ETH faces its challenge at key resistance points, with the potential for either a bullish breakout or a downward slide if supports fail. 

Disclaimer: This is a sponsored article and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.

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