After failing to conquer the $60,000 level, Van de Poppe says the flagship cryptocurrency is currently facing resistance and will likely fail to surpass it.
“This entire region between $60,400 and $59,000 is a resistance zone for the current price through which I’m not assuming we will break through. I’m assuming we will fail to break through it and get a new drop down again in which we get into chop season as we would call it.”
If Bitcoin does successfully sail past the specified resistance zone, the analyst expects the top cryptocurrency to hit a new all-time high near $68,000. On the downside, the trader warns that Bitcoin must hold the $57,000 price level to avoid dropping sharply and revisiting the $55,000 range.
“What to hold is this region between $57,400 and $57,800. If that holds on the lower time frames there is nothing to be worried about on the downside.
However, as we just see these very fast downward and upward moves the moment that the price loses this $57,000 level I’m assuming we will see a sharp drop down to $55,000 again.”
“We did see that we had a fake breakout to the upside for Ethereum in which we were testing this range around $1,900. [We] failed to hold the previous high which is this $1,850 level and after failing to hold this previous high as support we are dropping down again [to the $1,750 area] which is the critical area to hold…
[We] want to see Ethereum break clearly through this level, flip $1,850 and then we can see a continuation to new all-time highs.”
The trader anticipates that Ethereum, like Bitcoin will botch its retest of the $1,850 area and break back down to the $1,500-$1,550 area shortly, though the trader adds that the market is currently “ultra bullish” and the unexpected is always possible.
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