Weekly Recap: Bitcoin and Ethereum Generate Weekly Returns of Over 8%

Bitcoin Breaks Out, Generating Weekly Returns of Nearly 13%

Indeed, the flagship digital asset was able to break out of a consolidation pattern where it was stuck for over the past two months. The upward pressure behind BTC pushed its price to new yearly highs and allowed it to decouple from the rest of the market.

Bitcoin kicked off Monday’s trading session, October 19th, at a low of $11,500, and it did not take long for the bulls to take control. Prices shot up nearly 3.5%, and by Tuesday’s candlestick close, BTC was trading at a high of $11,900. Given the significant gains posted in such a short period, it seems like market participants rushed to exchanges to get a piece of the price action.

As buy orders began to pile up, the pioneer cryptocurrency broke out of an ascending parallel channel that was containing its price action since the market crash in early September. After slicing through the upper boundary of this technical formation during the first few hours of October 21st’s trading session, FOMO took over the market’s sentiment. The substantial spike in demand was followed by an 11.3% upswing that saw Bitcoin rise to levels not seen in more than a year.

Bitcoin rose to a high of $13,240, which was precisely the target determined by the ascending parallel channel. Investors could grasp weekly returns of nearly 13% as BTC closed Friday, October 23rd, at $11,970. Now, the $13,000 resistance zone will play a key role in determining where prices are headed next.

Ethereum Follows Bitcoin Steps and Aims for New Yearly Highs

As Bitcoin stole the spotlight of the cryptocurrency market because of its impressive price action, Ethereum was left on the sidelines waiting for buyers. The smart contracts token dropped over 3.5% following the weekly open to hit a low of $364.9 on Tuesday, October 20th. Nonetheless, this support barrier was able to keep falling prices at bay and serve as a rebound zone.

While demand started picking up during the first few hours after October 21st’s open, Ethereum showed signs that it wanted to follow Bitcoin’s steps. The second-largest cryptocurrency by market capitalization rose and moved past the x-axis of an ascending triangle where it was contained over the past month. Turning this critical area into support was seen as a buy signal for many investors.

By late Thursday, October 22nd, Ethereum had risen 14.5% to hit a high of $421.9. Many sell orders were filled on this upward push, creating some downward pressure behind Ether. As a result, it retraced nearly 3% to close the week at $409.4, providing a weekly return of 8.2%.

Although the ascending triangle previously mentioned projected a target of $470, it may take some time for Ether to achieve its upside potential. As investors shift their attention towards Bitcoin, Ethereum may retest the breakout point at $390 before it advances further.

The Crypto Market Marches to New Highs

Bitcoin has brought a lot of attention to the cryptocurrency market. As publicly traded companies continue adding this digital asset to their portfolio to hedge against potential risks, fewer tokens are being left in exchanges. The increase in scarcity is a very positive sign since it indicates that there is less BTC to sell.

While the bellwether cryptocurrency continues hovering around the $13,000 zone, investors must pay close attention to this crucial hurdle. A weekly candlestick close above it could lead to another rally towards $14,000. Meanwhile, failing to turn this area into support may see Bitcoin drop to $12,500 or $12,000.

Ethereum, on the other hand, would have to slice through the overhead resistance at $420 in order to advance to $470. Otherwise, the odds will increase for a pullback towards $390 before prices are forced to rise again.

Konstantin Anissimov, Executive director at CEX.IO