- Last night, both the Bitcoin and Ethereum price broke out.
- Ethereum went ahead and Bitcoin followed suit. The reason is the expectation of the merge, which could take place on September 19.
- However, before Bitcoin has not finished above the 200 MA line on the weekly chart, a high level of risk remains.
A glimmer of hope on the horizon, because Bitcoin and Ethereum broke out of their range last night. Ether seems to have been the driving factor overall, because Bitcoin was lagging behind for quite a while. At the time of writing, Ether is at $1,461 and BTC is at $22,303.
However, the bear market is not automatically over. While the merge seems to be a hot topic for Ethereum again, the event is still far away. Most recently, it was said that Proof of Stake could be launched in October. Now it seems that they have agreed on September 19.
From the point of view of technical analysis, this price increase is far from off the hook. Accordingly, a number of possible scenarios are emerging as to how the advance of the bulls could proceed further.
Bitcoin bullish from $30,000
The Bitcoin price should preferably manage to close above the 200 MA line on the weekly chart. This has already been the turning point after a sell-off twice in the past or marked the end of the bear market. If BTC were to bounce back here, of all places, that would be a sign of weakness.
If the breakout succeeds, the range between $ 25,000 and $ 26,000 would be a preliminary price target. There could be a resistance there, which is also an important touchstone for the bulls. Because if sell-offs start again with full force at this point, then there is a risk that the price will be pushed below $ 20,000 and the bear market will continue.
Finally, there is the magic line of $ 30,000. It would have to be conquered in order to make the thesis debatable that the bear market has come to an untimely end. Although investors have been rewarded for their courage, who have bought south of the $ 20,000 in recent weeks, they should not celebrate a victory yet.
Ethereum could become the driving factor
Even if many Bitcoiners will not like it: Ethereum could play a dominant role when it comes to the fact that the crypto market is gaining strength again. The Ether price was able to grow faster over the weekend than the mother of all cryptocurrencies. An atypical situation.
The sentiment quickly changed on social media and the merge was on everyone’s lips. This is the final conversion from Proof of Work to proof of stake. However, the starting signal for the event had to be postponed again. Most recently, during a conference between the developers, an agreement was reached on September 19.
However, it is important to understand that this is by no means a binding date. Because before that, there are still test runs that have to be completed successfully. If everything goes according to plan, then you could start in September. Since you had to postpone the merge and the current roadmap has no binding effect, the hype around the merge is a game with fire. Because if there are further delays, the market is likely to react negatively to them.
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