Technical Analysis

Bitcoin Trades Above Winter Resistance While Ethereum Need Another Pump To Push Above It

The month of April brought in a new lease of life to the crypto world, as most of the cryptocurrencies broke past their key resistance level and made double-digit gains. Bitcoin has made a solid 30% gain, currently trading at $5,400 mark which is above its key winter resistance. The longest crypto winter has plunged the prices of Bitcoin more than 80 percent from its 2017 peak of 20K, where the pioneers registered its lowest price on December 15 at around $3,200.

While many analysts have earlier predicted that Bitcoin might touch the $2,000 mark earlier than $5,000, but the April price rally has certainly made that prediction wrong. The most encouraging part about the price rally is not just the double-digit gains, but the fact that crypto market has held on to those gains. From the start of 2019, the crypto market has pushed for some upper movement, but whatever little gains the market made was immediately neutralized by a market pullback.

The current green in the market has elevated the moods and spirits after a year-long gloomy trend. Financial Survivalism, a crypto trader noted that there has been a major divergence between Bitcoin and Ethereum in the last one month since the price surge began. He noted,

“Bitcoin has formed a bull channel while #ETHUSD is trapped in a bear channel. Bitcoin is 30% above winter’s resistance while ETH is threatening to fall below its corresponding level.”

Ethereum still on the Borderline

While Bitcoin is known for being the crypto king and has solidified that status during the current surge, Ethereum is on the borderline and need to push further to get past the key resistance level. Ethereum also made around 28 percent in a week taking it prices from $140 to $180, however, unlike Bitcoin, Ethereum has not been able to solidify those gains and its prices have receded to around $160 mark. Ethereum has dropped 12.5 percent of its total gain while Bitcoin has only lost 4.4 percent from its month’s high.

Ethereum’s volatility might push it to its winter resistance level of $140 or even lower. analysts say that in order for ETH is to break past its key resistance level Bitcoin need to move past its key resistance level of $5,400.