Bitcoin battles 2-month resistance amid ‘most hated’ stocks rally

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Bitcoin (BTC) pierced the top of a stubborn trading range on August 11 as a decidedly strange rally gripped the riskier asset.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

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The pair had attempted several breakouts at the top of the range over the past weeks, all of which failed in the face of strong selling pressure.

New United States inflation data released this week formed a long-awaited catalyst for change, however, with bitcoin and altcoins equities out of step with the consumer price index (CPI) print for July suggesting Given that inflation was at its peak.

On the August 10 release day, the S&P 500 and Nasdaq Composite Index gained 2.1% and 1.9%, respectively. On the other hand, BTC/USD saw a daily candle near $900.

However, instead of heaping on the optimism, market commentators were anything but blanket bullishness as the dust settled. Sentiment, investor Raul Pal noted, was treating the post-CPI rally as a black sheep.

“Well, this is one of the most hated rallies I’ve seen in equities in a few years,” he said. Told Twitter followers in a dedicated thread.

Pal nonetheless argued that there was a “very good chance” that equities had hit their lows in June.

Predicting a major turnaround in crypto, meanwhile, popular crypto trader and analyst Il Capo stuck to $25,500 as the maximum possible target before a new downtrend begins.

“$BTC up almost 40%. Big chances, retrace coming. Buy the Dip,” fellow account Jibon Continuous In further Twitter comments.

Meanwhile a slightly more optimistic crypto Tony Told If the upper class manages to hold, Holder will be “in for a treat”.

BTCFuel noted a possible similarity between bitcoin charts now and in March 2020, saying that another breakout was not out of the cards.

Doubts Raise on Ethereum Rally

Meanwhile, the impressive performance of the altcoin put the biggest altcoin Ether (ETH) firmly in the limelight after ETH/USD rose over 11%.

RELATED: Bitcoin dominance hits 6-month low as metric announces new ‘alt season’

The pair continued its gains that day, crossing $1,900 for the first time since June 6 and now approaching the psychologically important $2,000 mark.

The CPI momentum added to the already upbeat Ethereum market with the GoErly testnet merge – a key early stage for the full merge event in September – ended successfully.

“Since the start of this bear rally, in mid-June, Ethereum has been gaining dominance in terms of trading volume relative to Bitcoin. In the latest few days, Ethereum and Bitcoin dominance have also surpassed,” said Martoun, a Contribution analyst on-chain data platform Cryptoquant wrote in a blog post on August 10.

Martun cautions that historical precedent still does not support a sustained rally in crypto, should it continue led by ETH

“It is clear that Ethereum is very popular due to the dominance of exchanges. This is understandable due to the upcoming 2.0 merger,” he added. However, from my 5 years of experience in the cryptomarket, a rally led by Ethereum is generally not the healthiest thing for the market. As you can read in my previous analysis, I am very conservative. Especially as Ethereum has already made a move of >100% from the lows

“However, from my 5 years of experience in the cryptomarket, a rally led by Ethereum is usually not the healthiest thing for the market. As you can already read in my previous analysis, I am very conservative. Especially because Ethereum has already made a >100% move from the lows.”
ETH/USD 1-Day Candle Chart (Binance). Source: TradingView

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