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Bitcoin Surges to 2020 High, Ethereum Rises Modestly above $389

By:
Anissimov Konstantin

On Wednesday, 21st October, Bitcoin broke above the local $12,400 resistance level and shot above $12,900 during the day.

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Bitcoin Rules the Day

The pair began the day at $11,918 and instantly began trending upwards without significant corrective moves. The whole day was like almost constant unobstructed rising for Bitcoin as of 17:30 UTC. After 17:30 UTC the price slumped down slightly after 17:30 UTC as the traders began locking in their profits.

The day’s price action shows that Bitcoin is in a strongly bullish mode. Yesterday’s breakthrough above $11,862 was a pivotal event in Bitcoin’s trading that has evidently and finally opened the road to $14,000, which may be not very far ahead. Friday’s U.S. presidential debates may have their own effect on Bitcoin’s price action in the short term as a Democratic lead will be putting more selling pressure on the USD, which will inevitably reflect in a bullish price action in BTC/USD.

Since there are no barriers on the chart for BTC/USD until $13,949 by the CEX.IO chart, the pair may finish this week well above $13,000, closing Wednesday’s trading session above $12,400.

Ethereum Biting Bitcoin’s Dust

Compared to Bitcoin’s surge, Ethereum’s Wednesday’s price action, though looking strong enough in percent – +6.8% as of 18:00 UTC, was only a pale shadow of Bitcoin’s gains simply from the graphic viewpoint.

The smart-contract pioneer opened Wednesday’s session at $369.6 and continued in a chart pattern looking quite similar to Bitcoin’s one. Since the start of the day, ETH/USD began trending up, not even being withheld by the daily $378 daily resistance level. A slight correction followed between 5:00 and 9:00 UTC, with ETH/USD bouncing off the $378 level and turning it into support. Between 16:00 and 17:00 UTC, the pair reached $399.6, which was the day’s high as of 18:30 UTC.

This modest rise amid the heady upside price action in Bitcoin was only a small consolation for Ethereum backers. Probably the launch of Ethereum 2.0 mainnet, which still looks quite far ahead, is making people tired of waiting and puts additional selling pressure on Ethereum. However, there is a little sign of hope for Ether from the technical side of trading as the 20-day SMA has finally made it above the 50-day SMA, which indicates a bullish market. But considering the bullishness in the Bitcoin market, Ether’s upside prospects look very uncertain.

Konstantin Anissimov, Executive Director at CEX.IO

About the Author

Konstantin has extensive experience working with various markets across the world

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