Bitcoin is currently witnessing a decent rise, as the cryptocurrency attempted to maintain its gains from a recent rally. However, it requires additional catalysts to sustain its upward momentum. Last month, Bitcoin’s rally above the crucial $30,000 level was driven by the news of BlackRock and other companies applying for spot Bitcoin exchange-traded funds (ETFs).
This development raised expectations of increased participation from retail and institutional investors in the cryptocurrency market. Bitcoin managed to surpass the $31,000 mark, reaching its highest level in 13 months. However, the cryptocurrency later hit a reversal. While Bitcoin is struggling with short-term resistance, Ethereum is experiencing a bearish divergence.
According to a new video by Crypto World, Bitcoin, as of the time of writing, is still within a larger multi-month bullish trend. However, a confirmed breakout above a significant resistance level of around $31,000 is required to validate the bullish momentum. To confirm a breakout above $31,000, a weekly candle close above this level is needed. If this occurs, the next target based on Fibonacci extensions would be around $37,000.
However, he said that BTC is currently facing rejection from a resistance level near $31,300. Multiple rejections in the past two weeks suggest that this level is significant. Additionally, an area between $30,800 and $31,000 may also act as short-term resistance based on previous highs. On the support side, the range between $29,900 and $30,100 is important, with $30,000 being a critical level.
Talking about Ethereum, he said that it is still within a larger multi-month bullish trend. Higher lows and higher highs on the larger time frames indicate the ongoing bullish momentum. However, like Bitcoin, Ethereum is experiencing a bearish divergence in the shorter term, signaling reduced bullish momentum.
