Market update: Is Bitcoin aiming for 39,000?

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

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