Daily highs of $23,625 for Bitcoin price show fresh bullish appetite.
Bitcoin (BTC) price hit highs above $23,500 on Dec. 22 as Monday’s weakness flipped to see bulls challenge previous levels.
BTC price in 5.2% daily gains
Data from Cointelegraph Markets, Coin360 and TradingView show BTC/USD returning to positions lost over the weekend, topping out at $23,625 at publishing time.
After plugging $21,800 on Monday, the markets have set a different tone today, with Bitcoin gaining over 5% and adding $1,200 in just six hours.
Macro factors combined to support Bitcoin’s appeal, with the United States Congress passing a further $908 billion coronavirus stimulus bill.
“Another $900 billion dollar advertisement for Bitcoin,” Tyler Winklevoss, co-founder of exchange Gemini, summarized following the vote.
Heatmap orderbook data shows that selling pressure at $24,000 and definitive resistance at $25,000 remained, somewhat dampening prospects of a stronger rally toward new all-time highs.
At the same time, Cointelegraph Markets analyst Michaël van de Poppe warned that a dip below $20,000 would not be “surprising” under current conditions.
“People are focused on $19,500 for now, and I think this is a very critical level to watch, but I would not be surprised if we dip below $19,500 towards $18,500 to liquidate all the people that have taken longs at that range,” he summarized in a video update on Tuesday.
MicroStrategy CEO: Last week’s bull run was “other guys”
Meanwhile, fresh comments from Michael Saylor, CEO of MicroStrategy, cast doubt on the idea that the company's huge Bitcoin buy-ins were responsible for last week’s intense upside.
Speaking on Funky Crypto Podcast, Saylor said that his purchases came in the form of high-frequency batches of $1,000–$2,000, and not a lump sum.
“I was not a green candle. The green candles were other guys,” he revealed.
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Ethereum vs. Bitcoin: Do or die as Ether price drops to a critical level against BTC
Ether price weakness in its Bitcoin pair is bad news for altcoins if ETH doesn't bounce soon.
It's been all about Bitcoin (BTC) in recent months with altcoins suffering as a result and BTC dominance reaching a new local high of 67.5% over the past few days.
However, a reversal typically occurs once altcoins start to show such major weakness and altcoin traders are in depression. The leading indicator for such a U-turn is Ether (ETH), which is now in a do or die position against its BTC pair.
New higher high for ETH in first uptrend since bear market
The chart above speaks for itself, showing a new uptrend since the breakout above $300 earlier this year when buyers immediately stepped in this region. This was a breakout from a multi-year accumulation range, which increases the likelihood of bull market continuation.
Since then, Ether’s price broke through $450 and continued its rally toward the recent high at $675. If that becomes the temporary top, a correction towards $450-480 is likely. However, such a correction is very healthy for the markets and should provide fuel for the next impulse wave.
Using the Fibonacci extension tool, such an impulse wave could send ETH price to $900 and possibly even $1,300.
December is historically a good month to enter altcoins
Since 2016, the Bitcoin dominance chart has topped out in the month of December, followed by a solid quarter for altcoins.
In that perspective, the Bitcoin dominance shows a clear resistance zone at the 67%-69% level. It’s hard to call this a resistance zone as the Bitcoin dominance chart isn’t an asset that can be traded. But technical analysis can still be useful in this case.
If the dominance reverses here, then another lower high will be constructed resulting in another top for December.
Given that the cryptocurrency market is in a bull cycle for the first time since January 2018, the potential altcoin run may become relatively big in scope. Such a rally could also see Bitcoin dominance dro to 48%-50%.
ETH/BTC must bounce to show strength
The weekly chart for ETH/BTC tells the whole story. A breakout above the 0.026 sats earlier this year propelled the price even higher with Ether rallying toward 0.04 sats — the range resistance from the previous accumulation period. This resistance couldn’t break in one-go, after which ETH/BTC dropped significantly.
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