Market update: Is Bitcoin aiming for 39,000?
Bitcoin and Ethereum have cleared above minor resistance; important for BTC/USD and ETH/USD to sustain gains if the rebound is for real. What is the outlook and key levels to watch?
Cryptocurrencies have surged on hopes that the US could soon approve a bitcoin exchange-traded fund. Technical charts suggest there is room for further rise.
Bitcoin: cracks above the key barrier
Bitcoin has broken above a crucial hurdle at the July high of 31,800, triggering a double bottom (the June and September 2023 lows), potentially opening the way toward 39,000. The surge in momentum follows a rise above another vital barrier on the 200-day moving average, roughly coinciding with the end-August high of 28,150. The move on the daily charts coincides with a rise out of the bearish Ichimoku cloud on the weekly charts – BTC/USD was last above the cloud back in 2021.
BTC/USD weekly chart
Signs of upward momentum emerged last month after a rebound from strong support at the June low of 24,750, which kept intact the higher-top-higher-bottom formation since the end of 2022. Importantly, this keeps alive the possibility of an extended recovery given the 2021-2022 decline, reinforcing the bullish medium-term trajectory, as highlighted early this year.
BTC/USD daily chart
Dips could be limited for now, with immediate support on the ten-hour moving average (now at about 33,000), and stronger support on the 30-hour moving average (now at about 31,600).
Ethereum: holds above vital support
Ethereum has been attempting to break above a key hurdle on the upper edge of a sideways channel since August, that comes in at about 1745. A decisive break above could open the door toward 1970, the price objective of the pattern.
ETH/USD weekly chart
The bullish momentum started after ETH/USD at a key cushion on the lower edge of the channel at about 1550, not too far from the lower edge of a downtrend channel since April. On the weekly charts, ETH/USD has held above the 200-week moving average, an uptrend line from last year, around the lower edge of the Ichimoku cloud.
Having said that, for the recovery to continue, ETH/USD would eventually need to cross above the April high of 2145, raising the odds of an extended rebound toward 2400 (the 38.2% retracement of the 2021-2022 decline).
ETH/USD daily chart
This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.