Coin Edition -
- Bitcoin and Ethereum registered major recoveries, causing high short liquidations.
- The rising momentum could push BTC to $72,873 in the short term.
- A death cross on the ETH daily chart suggested a decrease to $2,951.
The cryptocurrency market experienced a welcome reprieve this week, with leading tokens Bitcoin (BTC) and Ethereum (ETH) registering price increases. As of press time, Bitcoin traded at $66,802, while Ethereum gained 5.89% over the past seven days, reaching $3,094.
Analysts attribute the price surge primarily to the lower-than-anticipated U.S. Consumer Price Index (CPI) data released this week. The CPI, a key inflation indicator, eased investor concerns, leading to increased liquidity within the market and fueling a broader price rally.
This shift in market sentiment is further evidenced by the significant liquidation of short positions. According to data from Coinglass, approximately $109.33 million worth of short positions were liquidated in the past 24 hours, with shorts accounting for over 70% of the total. Bitcoin alone witnessed $35.84 million in short liquidations, while Ethereum experienced $24.58 million.
Crypto Market Liquidations (Source: Coinglass)
Whether the prices of BTC and ETH would continue to increase remains unknown but Coin Edition looks at the potential of the top two cryptocurrencies.
Bitcoin (BTC) Price Analysis
On the daily chart, Bitcoin created a lower-high pattern between April 8 and May 4. This structure implied that sellers entered the market, and were part of the reasons the coin went on a month-long downtrend.
However, bulls identified support at $60,723 and capitalized on it. As a result, BTC was able to revisit $67.460 earlier in the week. At press time, the Relative Strength Index (RSI) was in bullish territory, indicating that the price of Bitcoin could hit $72,873 in a highly bullish case.
BTC/USD Daily Chart (Source: TradingView)
But rejection could cause BTC to retrace to $59,195. However, a significant decline like this looks unlikely in the coming days.
Ethereum (ETH) Price Analysis
The daily ETH/USD chart indicated that a death cross had been formed. For those unfamiliar, the Exponential Moving Average (EMA) is the indicator that shows if a cryptocurrency forms a golden or death cross.
As of this writing, the 20 EMA (blue) had slid below the 50 EMA (yellow), suggesting a bearish trend. If the trend fails to change into a golden cross, the price of ETH might be affected, and a decline to $2,951 could be next.
ETH/USD Daily Chart (Source: TradingView)
On the other hand, if ETH rises past the EMAs, the value of the altcoin might key into the resistance at $3,277.
While the recent price surge offers a temporary reprieve for the crypto market, the future path for Bitcoin and Ethereum remains uncertain.
Analysts highlight both potential upside and downside scenarios, with technical indicators suggesting a possible tug-of-war between bulls and bears. The coming weeks will be crucial in determining whether the positive momentum can be sustained or if renewed selling pressure will emerge.
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