Does Ethereum’s rebound indicate that Bitcoin will enter the next stage of the bull market above $50,000?


Bitcoin (Bitcoin) Has always regarded consolidation below $50,000 as a psychological barrier. However, during this pullback, the prices of several large altcoins have been soaring, which shows that the altcoin season is not over yet.

At the same time, the price of Bitcoin is facing the key resistance of a breakthrough, while the price of Ether (Ethereum) Has broken through the resistance and hit Three-month high against BTC And facing the next resistance level near the all-time high.

The main question now is whether this breakout of Ether is a signal that Bitcoin will follow suit and break the resistance level in September. Historically, September is a correction month, Which means that such a breakout may catch many traders by surprise.

Bitcoin breaks through the critical resistance zone of $51,000

BTC/USDT 1-day chart. source: Transaction view

Bitcoin’s daily chart shows a consolidation between US$44,000 and US$50,000. This integration has led to a major breakthrough in altcoins across the market, as some altcoins have broken through previous historical highs.

Bitcoin’s resistance is very obvious. If BTC can break through this resistance, there may be a big impulsive trend, similar to a breakthrough of more than $6,000 early in this cycle.

The bearish divergence in the chart will only be confirmed when the recent higher lows fail and break down. At that time, the upward trend will be officially reversed.

Currently, the market is consolidating after BTC rebounded from its July low. In other words, the bearish divergence remains unproven until Bitcoin loses the lower end of its support range ($44,000).

Total market value hit a new high

1-day chart of the total market value of cryptocurrencies. source: Transaction view

The total market value of cryptocurrencies shows a continuing bullish trend, with lows and highs constantly rising.

The key breakthrough for the market value breakthrough is the resistance zone of around $2.12 trillion. Once it breaks through, more upside may reach a record high. This structure may also herald the price trajectory of Bitcoin, as the chart currently shows more bullish behavior than BTC/USD.

Ether broke through the critical $3,400 level

ETH/USD 1-day chart. source: Transaction view

The daily chart of Ether shows a breakthrough of the key breach of 3,400 USD. This is a signal that the entire market is strong. The current difference between Bitcoin and Ethereum is that ETH has reached a higher high, while Bitcoin is still in a sideways range.

In this chart, the key breakthrough for Ethereum is the previous resistance zone of $3,400. As long as this can maintain support, the possibility of continuing to move to historical highs will become greater and greater.

However, if it falls below $3,400, the potential bearish divergence will come into play, leading to a correction to $2,600. This correction will also affect Bitcoin, and Bitcoin also has some key levels worth paying attention to as support.

Focus on key levels of Bitcoin

BTC/USD 4-hour chart. source: Transaction view

Bitcoin’s chart shows a slight downward trend since its recent high of $50,300. However, the chart also shows an important support of US$46,400, which may prevent further declines to US$44,000 and below.

This correction may harm the market and cause the entire market to fall to a lower level, which may mean that Ether may fall below US$3,400.

On the other hand, if Bitcoin stays in the range between US$44,000 and US$51,000 (in the lower time frame, US$46,400 is also a basic level), conditions for altcoins to rebound will only become better.

Before Bitcoin is not vertical or has an obvious push wave, altcoins are in a favorable position over BTC in the short term. This is what the market is currently seeing.

The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.