Bitcoin tends to trade within a pennant pattern in a tightening range and although the market has risen above the trading average of 20 days, it is apparent that the bulls and bears are competing for the direction that the digital asset will go.
Data from Cointelegraph Markets and TradingView reveal that BTC traded in a range between $34,955 and $37,850 over the weekend, but with less bullish conviction, traders buying each dip tend to do so.
Bitcoin is in a “consolidation above the $35,500 level” according to Yves Renno, Head of Trading at Wirex, but Renno still sees an overall bullish development in the market.
Renno also said that as demonstrated by a rise in the number of BTC whales and a “low to average” miner supply, the most recent correction was potentially used as a reason to invest for massive, institutional-sized investors.
Renno said investors should expect to see a “continued period of high volatility with a positive medium-trend,”based on activity in the derivatives sector, in the coming weeks and months. He said: “The open interest is always hitting new ATHs, which makes the market even riskier since it implies that there is a higher risk of liquidation during a correction, meaning collateral sold, which typically amplifies the corrections.”
The price of Ethereum increased by more than 10 percent and broke several large barriers around USD 1,250. ETH outperformed bitcoin and also broke the USD 1,300 mark. It still faces challenges near USD 1,350, above which, in the near term, the bulls could challenge the USD 1,500 mark.
The USD 1,300 mark, on the downside, is short-term support. Near the USD 1,255 and USD 1,250 stages, the major support is now forming.