Bitcoin and Ethereum have reached vital support levels, collecting enough liquidity for potential rebounds. However, from a long-term perspective, a long-squeeze appears to be underway.
Bitcoin and Ethereum could soon rebound, but the level of optimism among traders could spell trouble.
Bitcoin has lost more than 4,000 points in market value over the past 48 hours. The rejection from the $43,000 resistance level on Apr. 21 led to the recent correction. Still, it appears that Bitcoin could be preparing to bounce off the support level.
The Tom DeMark (TD) Sequential indicator has presented a buy signal on Bitcoin’s four-hour chart. The bullish formation developed as a red nine candlestick, which is indicative of a one to four candlesticks upswing. A spike in buying pressure around the current price levels could help validate the optimistic outlook, resulting in an upswing to $40,650 or even $41,200.
It is worth noting that Bitcoin must keep $39,400 as support so the bullish thesis can be validated. Failing to hold above this vital support level could result in a steeper correction as the following vital demand zones sit at $38,500 and $37,300.
Ethereum also appears to be gathering momentum for a bullish impulse after retracing by more than 8% in the past 48 hours. As long as the asset continues to trade above $2,950, it has a chance of rebounding. The TD Sequential indicator supports the optimistic outlook and has presented a buy signal on Ethereum’s four-hour chart.
If buy orders increase around the current price levels, Ethereum could gain over 150 points in market value. A decisive close above $3,100 could lead to further gains while losing $2,950 as support could see the asset fall to $2,880.
Although the technicals point to a rebound in the short-term future, current optimism levels can be seen as a warning signal.
On Binance, roughly 77% of all accounts with an open position in Bitcoin are long. The BTCUSDT Long/Short Ratio has risen to a 3.32 ratio as of Apr. 23. Most traders on the leading exchange are expecting prices to continue rising, which could create the perfect conditions for a long squeeze.
Disclosure: At the time of writing, the author of this piece owned ETH and BTC.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Get daily crypto briefings and weekly Bitcoin market reports delivered right to your inbox.