Bitcoin could see another couple weeks of stagnation as recent gains are absorbed before resuming its uptrend, according to Fairlead Strategies. The flagship cryptocurrency reached the $100,000 milestone for the first time last week, trading as high as $103,844.05 at one point Thursday, but pulled back shortly after and is now down about 1% since […]
Bitcoin could see another couple weeks of stagnation as recent gains are absorbed before resuming its uptrend, according to Fairlead Strategies. The flagship cryptocurrency reached the $100,000 milestone for the first time last week, trading as high as $103,844.05 at one point Thursday, but pulled back shortly after and is now down about 1% since then, according to Coin Metrics. “Short-term momentum is weak,” said Katie Stockton, managing partner at Fairlead Strategies, an independent research firm and investment advisor, in a note Monday. “After failing to hold above $100,000, bitcoin is confirming a short-term counter-trend ‘sell’ signal … [which] supports two more weeks of consolidation.” “Our intermediate-term indicators point higher, supporting a bullish bias beyond the short term,” Stockton’s note also said. “This suggests a severe pullback can be avoided.” With resistance at $100,000, Fairlead puts bitcoin support at about $84,700, or its 50-day moving average. BTC.CM= ETH.CM= 5D mountain Bitcoin and ether have pulled back after spiking to key levels last week One day after bitcoin’s breakthrough, ether rallied to the key $4,000 level it last reached in March. Similar to bitcoin, its short-term momentum has faltered, but the second-largest cryptocurrency is poised to clear that level again after some consolidation, Stockton said. While bitcoin should outperform near term, ether is now better positioned to outperform in the intermediate term, she added. Ether still positive Ari Wald, chart analyst at Oppenheimer, noted that ether has not rallied to a new multiyear high the way bitcoin has, “indicating ETH has been relatively weaker.” Its trend is still positive, however. “[Ether’s] March 2024 peak marks resistance at $4,100 and support at the minor breakout above its July 2024 peak at $3,500,” Wald said. “The crypto’s positive trend argues for a breakout to a new all-time high over the coming months.” Rob Ginsberg from Wolfe Research agreed although ether faces near-term consolidation, it still has a “very compelling multi-year base.” “You have some wood to chop in the $4,100 to $4,800 resistance zone but [ether] should continue to grind its way through,” he said. “An eventual breakout through the $4,866 high and it’s blue skies, [with] $6,000+ in play.”
