Although Bitcoin (BTC) and Ethereum (ETH) are struggling to find support, investors in the futures markets are showing signs of optimism. This type of market behavior could lead to a short rally before another pullback. Also, the Tom DeMark (TD) Sequential indicator currently offers a buy signal on Bitcoin’s 12-hour chart. As Kriptokoin.com, we have previously reported in this article, over 25 cryptocurrencies and Bitcoin signals of the indicator in question have been correct in recent years.
Bitcoin Prepares to Take a Leap
Bitcoin seems to be gaining momentum for a recovery after its correction over the past two weeks, according to analysts. After reaching $48k on March 28, BTC experienced a significant drop of about 13 percent. Despite the significant losses that have occurred, it seems that investors are still optimistic. On Binance futures, the Bitcoin Long/Short Ratio continued to rise and reached 2.62 on April 9. According to the trading volume of all accounts on the world’s largest cryptocurrency exchange, approximately 72.4 percent are in Long positions in Bitcoin. The Tom DeMark (TD) Sequential indicator
is currently offering a buy signal on the 12-hour chart of Bitcoin (BTC). Analysts point out that the bullish formation developed as a red nine candlestick, further buying pressure could help confirm the optimistic outlook, which could push Bitcoin for an uptrend towards the $44,400 resistance level. A decisive 12-hour candlestick close above this hurdle. If it is, it could start a more significant rally to retest the recent high of $48,200. However, although the odds look in favor of the bulls, Bitcoin could increase its losses before it rebounds. The most important support below Bitcoin lies between $41,600 and $40,000. If this support area is breached, it could send prices to $38,000 or even $36,000, triggering a liquidation process.
Ethereum continues to consolidate
Ethereum is consolidating in the $140 price range without giving a clear signal of its next move. ETH is stuck between $3,300 and $3,160 in the past three days after a 12.27 percent correction. This price range is not attracting investors, despite Ethereum’s upcoming major plans. While the launch date is still unknown, Ethereum is poised to complete the transition from Proof-of-Work to Proof-of-Stake in 2022. The current expansion rate of the network reflects the lack of interest. The number of daily addresses created on the Ethereum blockchain has held steady at an average of 85,000 addresses over the past month. A sustained rise in this on-chain metric could lead to further upward price action as it signals the entry of investors. Until that happens, the transaction history shows critical supply and demand areas that need attention.
IntoTheBlock’s Global Money In/Out (GIOM) model, the most significant support level for Ethereum at an average price of $3,000 where 4.71 million addresses hold 15.58 million ETH reveals that. According to analysts, Ethereum needs to break through support or resistance to resolve its uncertainty. A drop from the $3,000 support level could push ETH price as high as $2,400. However, if the bulls break the $3,780 supply wall, prices could rally higher towards $4,600.
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