The crypto sector is rallying after stopping the downward rot last week. Bitcoin is back above $27,000 and Ethereum is butting against resistance at $1,650.
A more sustainable uptrend could be on the way for Bitcoin as the king of the cryptocurrencies surges back towards a potential reclamation of its 200-week moving average.
Up 2.5% for the day, bitcoin is bucking the incredibly negative narrative that is abounding on Twitter (X). Bitcoin has reached resistance at this point, and it remains to be seen now if it can push through, or perhaps go back for one more retest of the bottom of its upward channel.
This could potentially be the case, given that short term RSIs are looking topped out. However, on the higher time frame of the weekly, the Stochastic RSI indicator has just curled upward from the bottom, signalling upward momentum perhaps for the final quarter of this year.
Ethereum is still playing a more moderate upward trend compared to that of bitcoin. It has similar signs as bitcoin, such as just coming to resistance now, and a cross up on the weekly Stochastic RSI momentum indicator.
Zooming out on a more macro perspective, Ethereum is really looking promising. The price is traversing towards the pointy end of a classic ascending triangle, which from one end of the triangle to the other could be 2 years in the making (June 22 to June 24).
Of course, this particular chart pattern is more likely to break before reaching the end. As price becomes more compressed over the next few weeks and months look for a breakout, hopefully to the upside, which could be incredibly powerful.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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