By
Temitope Olatunji
April 18th, 2024
Additional reports from the analyst stated that this is the most recent in a string of fakeouts that will deceive many traders into thinking the bottom is in when, in fact, the trend is still downward.
After enduring a horrid few weeks, Bitcoin and Ether prices saw some green over the last few days. The price of Bitcoin saw a 7% gain, which took its price to a daily high of $21,800 after hovering around the $20,400 mark for the majority of July 7.
The price of Ether has also been steadily climbing up and has now gained over 19% for the week, taking its price to $1,241 at press time. The spike in Ether’s price comes off the latest feat in its quest to merge from proof-of-work (PoW) to proof-of-stake (PoS) as its developers cleared another test net hurdle and now appear to go live later this year.
Earlier this week, ethereum programmers announced that the second of three public test networks being used for the Merge was successfully deployed. This latest stage, known as Sepolia, paves the way for the final deployment across the Goerli testnet. Once all the testnet programming is cleared and glitch-free, the PoS enhancements will be slated for rollout across Ethereum’s mainnet later this year.
According to Jamie Cox, managing partner of Harris Financial Group, the spike in Bitcoin and Ether prices has also been partly linked to a backdrop of increasing jobless claims in the United States, which is a possible signal that “the pressure on wages may have now peaked.
Cox added that if this trend continues, it could result in financial conditions that are “tight enough to allow the Fed to throttle back on the scale of rate increases.”
Other analysts are, however, urging investors to trade with caution as the latest price breakout could be a fakeout that could trick and land investors into a macro downtrend in the near future.
According to one analyst, the latest pump in the volume recorded on the respective networks which have sent Bitcoin and ether prices soaring confirms breakouts and fakeouts. He added that FTX received 22,000 $BTC from Celsius in the early stages of July 7, a pump that FTX is leading to spam small buy orders.
Additional reports from the analyst stated that this is the most recent in a string of fakeouts that will deceive many traders into thinking the bottom is in when, in fact, the trend is still downward. “Volume decreasing in a range is consolidation for the continuation of the trend. Not to mention thousands of inflows to exchanges before each top,” he stated.
Popular crypto analyst, Michaël van de Poppe also highlighted the possibility of a large amount of liquidity above the 200-Week MA. “If Bitcoin breaks that level, I’m assuming we’ll probably be getting a run of $2-5K upwards in just a few days to $28-30K. And then the sentiment will flip too,” he stated.
Bitcoin has fallen below its 200-week MA for just the fourth time in its history, which has led to speculation about the possibility of the digital coin climbing back above the line and what’s in store after that.