Bitcoin targets 8-week high as Ethereum nears $1.8k
Despite the new sentiment fuelled by inflation, Bitcoin hits new highs around $24,246
By Shashank Bhardwaj
Bitcoin nears its next resistance after hitting another high of $24,246 on August 8. The moving average on the daily chart seems to show a bear market signal, but the long signals still dominate the chart. The chart characterises the moving average at around $25,650, showing signs of resistance for Bitcoin. TradingView suggests a new bear market rally with the CPI index be disclosed, but the market seems to be showing different colours with a new high being hit.
According to Larry Fink, CEO of BlackRock, this new BTC/USD pair high seems nothing but an extended bear market relief rally. More than 44,000 BlackRock shares were sold by the CEO, suggesting that he had some knowledge that the majority did not. Since this is the biggest share sale since the 2020 market crash, the correlation points toward major crypto buying after the bear rally. With the risks of a major stock market correction and the crypto market being heavily connected, inflation knowledge seems to be a deciding factor in the upcoming rally.
Ethereum outperformed all other crypto and delivered a 5 to 8.5 percent return in ongoing conflict about Bitcoin performance. As speculations about the Ethereum merge arise, the crypto has hit new August highs by reaching $1817. With the options contract speculated to occur around September, the Ethereum market seems to be running in a different direction than Bitcoin. Traders are holding a long bias in this market, suggesting a bull rally. Further reports suggest traders' buy the rumour, sell the news strategy as they position themselves in the long market.
With both the markets showing different biases, the Ethereum market seems to be heading towards a backwardation after September. Crypto traders have accordingly planned out their sales after the Merge, hence the bull rally for Ethereum and Ethereum-based coins. The daily moving average chart suggests further highs for Ethereum, with the related news being on the greener side.
According to dealer and pundit Max Rager, "I think the one thing that can push prices back down is the stock market having another major pullback…Outside, hard to see something putting as much selling pressure as we had with both the LUNA/3AC events." The CPI inflation data targets the Bitcoin market more than the Ethereum one. The candle chart for Bitcoin suggests a price correction with a major stock market correlation.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
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