Market update: bitcoin and ethereum technical outlook
A BTC/USD break above short-term resistance may lead to a longer-term move higher and the Ethereum technical setup is looking increasingly positive.
Bitcoin analysis
Bitcoin (BTC) has been treading water for the last three weeks with little to suggest either a move higher or lower. The daily BTC/USD chart looks positive with all three simple moving averages in a bullish set-up and supporting a move higher, with a short-term series of higher lows and higher highs since the start of May adding to positive momentum.
A break and open above $70,000 should quickly see $72,000 tested, leaving the Athene (ATH) at $73,778 vulnerable. With demand from a range of global spot BTC exchange traded funds (ETFs) outpacing post-halving new BTC supply, the medium-to-longer outlook for BTC looks constructive.
Bitcoin daily price chart
Ethereum analysis
Recent SEC approval for a range of spot Ethereum (ETH) ETFs has seen the second-largest cryptocurrency by market cap perform strongly since late May. The near 20% bullish candle on 20 May and the subsequent period of consolidation, is setting up a rough bullish flag pennant, again pointing to higher prices.
The 12 March high at $4095 should be tested when the 27 May high at $3974 is broken, leaving the November 2021 ATH at $4860 the longer-term target.
Ethereum daily price chart
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This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.
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