Bitcoin (BTC/USD) & Ethereum (ETH/USD) Break ATH as Inflation Fears Rise
Bitcoin (BTC/USD), Ethereum (ETH/USD) Outlook:
- Bitcoin (BTC/USD) eyes $70,000 as bulls target the $100,000 mark
- Ether (ETH/USD) and other major cryptocurrency follow suite as inflationary pressures loom
- Total market capitalization for cryptocurrencies surpasses $3 Trillion
- Will a new Fed chair be detrimental to digital assets?
Over the past year, a culmination of low interest rates, higher inflation and a rise in geopolitical tensions have resulted in an increase in the institutional adoption of digital assets, supporting the steep rally currently supporting both Bitcoin and Ether prices.
After achieving a fresh all-time high of $68,564, buyers of the original cryptocurrency (Bitcoin) have continued to fight for dominance over the systemic, prominent trend in an attempt to push prices towards $100,000.
Now, as major central banks such as the ECB (European Central Bank), the Fed (US Federal Reserve) and the BoE (Bank of England) aim to tackle inflation, both technical and fundamental factors may further assist in the catalyzation of price action for the imminent move.
Bitcoin Technical Analysis
After setting another fresh record high of $68,564, failure for the bulls to break above key psychological level of $70,000 enabled the bears to drive prices back below $68,000, currently holding as support.
Despite a break above the prior high and above the ascending triangle which may continue to hold bulls at bay, the MACD (moving average convergence/divergence)continues to trade above the zero line, a probable indication that the upward trend may remain intact, at least for now.
With markets now pricing in the effects of supply constraints, inflation and regulatory scrutiny, large institutions may continue to look towards digital assets as a hedge against inflation which could see cryptocurrencies rising further.
Bitcoin (BTC/USD) Daily Chart
Ether (ETH/USD) Technical Analysis
Similar to Bitcoin, Ethereum has recently set another record high above $4,800 before rebounding back within the constraints of the rising channel which continues to provide both support and resistance for the immediate move.
Likewise, the MACD and 50-day moving average continue to trade in positive territory suggesting that the upside may prevail, at least for now.
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707