Ethereum price 'bullish triangle' puts 4-year highs vs. Bitcoin within reach

Ethereum price ‘bullish triangle’ puts 4-year highs vs. Bitcoin within reach

ETH/BTC could reach 0.10 this year as the market anticipates Ethereum’s proof-of-stake switch.

Ethereum’s native token Ether (ETH) has dropped about 17% against the U.S. dollar in the last two weeks. But its performance against Bitcoin (BTC) has been less painful with the ETH/BTC pair down 4.5% over the same period.

The pair’s down-move appears as both ETH/USD and BTC/USD drop nearly in lockstep while reacting to the Federal Reserve’s potential to hike rates by 50 basis points and slash its balance sheet by $95 billion per month.

The latest numbers released on April 12 show that consumer prices rose 8.5% in March, the most since 1981.

BTC/USD vs. ETH/USD daily price chart. Source: TradingView

ETH/BTC triangle breakout

Several technicals remain bullish despite ETH/BTC dropping in the last two weeks. Based on a classic continuation pattern, the pair still looks poised to resume its strong bull run in 2022.

Notably, ETH/BTC has corrected from a horizontal resistance level that constitutes an ascending triangle range in conjunction with rising trendline support.

As a rule, ascending triangles send the price in the direction of their previous trends. Therefore, since ETH/BTC was rallying before forming one, there’s a decent chance its bull run could continue toward its Feb. 2018 highs near 0.1 BTC, based on the setup shown in the chart below.

ETH/BTC weekly price chart featuring ascending triangle setup. Source: TradingView

Nonetheless, the interim market setup looks skewed to the downside, with ETH/BTC eyeing a correction towards the triangle’s lower trendline following its pullback from the upper trendline.

The bearish reversal scenario

Ascending triangle breakouts reach their upside targets nearly 73% of all time, a study by Samurai Trading Academy shows.

In a separate report, veteran investor Tom Bulkowski also highlights a 70% success rate for ascending triangles, thus underscoring the strong possibility for Ether to reach 0.10 BTC in 2022.

Related: Bitcoin claws back $40K as 24-hour crypto liquidations near $500M

Nonetheless, this still leaves ETH/BTC with a 30% chance to invalidate its ascending triangle setup.

ETH/BTC weekly price chart. Source: TradingView

As it happens, the pair will break below its triangle’s lower trendline, which also coincides with its 50-week exponential moving average (the red wave in the chart above) near 0.06 BTC, opening the door for a further drop to 0.05 BTC, a support area from May-June 2021.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Bitcoin spikes with stocks as US inflation hits highest since 1981

Bitcoin spikes with stocks as US inflation hits highest since 1981

The Fed gets some serious heat as CPI numbers show just how quickly prices are rising for U.S. consumers.

Bitcoin (BTC) saw a brief boost on April 12 after the United States saw its highest Consumer Price Index (CPI) data since 1981.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Analyst: Inflation echoes “mythical stories”

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD spiking $400 instantly as the data was released.

U.S. CPI was up 8.5% year on year and rose 1.2% in March alone, according to the U.S. Bureau of Labor Statistics.

The most in over 40 years, the results showcased the inflationary pressures active throughout the economy and implied that the Federal Reserve had much ground to make up. Criticism of the Fed was everywhere, including from the likes of traditional economists such as Steve Hanke.

“U.S. CPI came in at *8.5%* level, which means that inflation is likely already in the double digits,” Gabor Gurbacs, director of digital assets strategy at VanEck, responded

“A few years ago these type of numbers were mythical stories associated with Venezuela, Argentina, Zimbabwe and Weimar. Central banks have failed. It’s time for plan ₿.”

Bitcoin’s reaction was in line with correlated stock markets, the S&P 500 likewise gaining 1% on the open and Asian markets recovering from previous losses.

“Inflation is worse than you think, and Bitcoin is better than you know,” MicroStategy CEO Michael Saylor commented, echoing Gurbacs.

U.S. CPI trends chart. Source: U.S. Bureau of Labor Statistics

Will RSI deliver for bulls again?

On-chain signals were meanwhile giving hope to some analysts on the day despite BTC/USD losing $40,000 support overnight.

Related: BTC stocks correlation ‘not what we want’ — 5 things to know in Bitcoin this week

Chief among these was Bitcoin’s relative strength index (RSI), now eyed as a potential pretext for a trend turnaround.

Returning to a reading of 35 this week, RSI thus printed a pattern, which historically saw upside ensue, popular Twitter account BTCfuel noted.

As Cointelegraph reported, BTC price predictions included a leg down to $30,000 in June as a result of the macro picture.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Axie Infinity sees 'no signs of buyers' as AXS price tumbles 30% in two weeks

Axie Infinity sees ‘no signs of buyers’ as AXS price tumbles 30% in two weeks

AXS price nonetheless tests a key inflection area that has historically acted as strong support.

Axie Infinity (AXS) price has fallen by nearly 30% two weeks after losing $625 million to a hacking incident involving its play-to-earn gaming platform’s underlying blockchain, the Ronin Network.

AXS/USD dropped to $46.69 on Monday, its lowest level since March 16, signaling a dampening buying sentiment among traders and investors following the hacking incident.

Independent market analyst TJ asserted that there is “no sign of buyers” even with the price entering areas with a history of attracting accumulators.

AXS/USD daily price chart featuring demand areas. Source: TradingView

For instance, AXS broke below the demand zone that TJ highlighted as a potential inflection point during the weekend, a move that risked sending the price further lower towards its range support target near $45 this week.

AXS bounce back ahead?

The bearish prospects appear despite a strong assurance from Sky Mavis — the company that built Axie Infinity — that they would reimburse all the users who lost funds in the $625 million theft. Last week, the firm announced a $150 million raise, led by Binance, to honor its promise.

Additionally, AXS hints at more downside after painting a death cross between its 20-day exponential moving average (20-day EMA; the green wave) and its 50-day EMA (the red wave).

AXS/USD daily price chart featuring ‘golden cross.’ Source: TradingView

The area around the $45-level has earlier served as an accumulation zone for traders. For instance, its last retest as support in March had preceded a nearly 70% rebound move to around $75. Similar retracement moves occurred in January and February when the price fell to around $45.

Meanwhile, as AXS tests the key support level, it would also prompt its daily relative strength index (RSI) to move lower below 30 — an “oversold” signal. This suggests Axie Infinity could be due for a bounce higher in April.

Falling wedge confirmation needed

AXS’s price is already “oversold” on its four-hour chart, according to its RSI readings near 25. Meanwhile, AXS is breaking out of its prevailing falling wedge pattern to the downside despite it being a bullish reversal pattern in theory.

AXS/USD four-hour price chart featuring ‘falling wedge’ setup. Source: TradingView

The support confluence — featuring an oversold RSI and the accumulation zone near $45 — raises the AXS’s potential to re-enter the wedge range, followed by a breakout to the upside.

If this happens, AXS/USD could move toward $58, a key March 2022 resistance level, based on the falling wedge’s theoretical profit target, measured after adding the distance between its upper and lower trendlines to the breakout point.

Head-and-shoulders risk

Conversely, breaking below the key support area near $45 could trigger AXS’s head-and-shoulders (H&S) setup on longer timeframe charts.

Related: BTC stocks correlation ‘not what we want’ — 5 things to know in Bitcoin this week

That is primarily because the $45-level serves as the pattern’s neckline. As a rule, a break below the H&S neckline support shifts the asset’s downside target to the level at a length equal to the maximum distance between the head and the neckline, as illustrated in the chart below.

AXS/USD weekly price chart featuring H&S breakout. Source: TradingView

As a result, the H&S setup risks sending AXS’s price toward $12 on a decisive breakout below its neckline. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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