How high can bitcoin and ether go?

The cryptocurrency market is experiencing a period of calm, with the two major cryptocurrencies returning to their levels of a month ago. But how high can they climb? BFM Crypto takes stock.

For those who follow the progress of cryptocurrencies in real time, this information will not have escaped them. In recent days, the queen of cryptocurrencies, bitcoin and ether, have regained their strength.

From 5:30 p.m. today, one bitcoin is worth $22,200, according to data from Coinmarketcap. It recovered to the level of a month ago, having been weakened by the crypto crash in mid-June after the Celsius episode. For its part, ether is worth $1,480, and is also experiencing a very good progression for a month.

Plus 28% in one week for ether

The prices of bitcoin and ether respectively increased by more than 4% and 7% during a day, but above all more than 8% and… 28% during a week for ether . How can we explain such a development? It can be connected with the finally precise announcement of a date for the event The Merge of Ethereum, which was supposed to take place on September 19. If the event were to take place on that day (which has so far been often postponed), it would be a real revolution in the cryptocurrency sector: see our article on The Merge.

In addition to ether’s rise, the cryptocurrency market seems to have passed the last two crises, which have thrown many companies into turmoil, from the Terra blockchain to the Singaporean investment fund Three Arrow Capital to the Celsius lending platform.

“The rise in cryptocurrency prices is associated with a general pause in traditional markets and risky asset classes,” explains BFM Crypto Xavier Fenaux, partner at Interactiv Trading.

In addition, for many months the cryptocurrency market has been correlated with traditional markets, mainly in step with technology stocks (Nasdaq).

“We have seen that the traditional markets did not react too badly to the announcement of inflation in the US last week. (9.1% in June over a year, ed. note). It was a good surprise, quite unexpected . The market is already projecting itself on 2023, and therefore the “worst” is already integrated into the prices”, adds the latter.

What scenarios for bitcoin and ether?

If cryptocurrencies are facing a good run, it should not be forgotten that they have lost more than 70% of their value compared to their all-time high last November. On November 10, one bitcoin was worth $69,000, compared to just over $22,000 today.

So if the cryptocurrency market experiences a short-term upswing, one wonders if it can last and how far cryptocurrencies can go back. To understand “bear” (bearish market) and “bull” market (bullish market), see our article here.

As for bitcoin, “it is not yet clear whether the 2022 low is behind us, we are moving from a bear market to a short-term bounce. If bitcoin settles for several days above $22,000, there will be a psychological shift in the market from anxiety to positive in the short term. The next level should be the low of last summer, around $28,000-30,000,” Xavier said. Finals.

However, Bitcoin’s strength has declined since the last crypto crash in June. Thus, its dominance, i.e. its points in the global cryptocurrency market (estimated at more than 1,000 billion in capitalization) has gone from 48% to 42% in a month.

“This means that investors are now much more interested in everything that is not bitcoin, and therefore we can observe a nice progression of certain altcoins. (a term that refers to cryptocurrencies other than bitcoin , Ed)”, emphasizes Xavier Fenaux .

These other rising cryptos

This progression can be observed on one side on the ether side. The cryptocurrency rose much faster than bitcoin, breaking above its resistance built for a month against 1300 dollars.

“As long as we stay above $1,300, we see a short-term bullish reversal. There may be a medium-term technical resistance level around $1,800-$2,000, which is likely to trigger some break-offs if we go that far.”, continues the expert.

But other cryptocurrencies made good progress over the course of a month, and started to please traders. This is the case, for example, of the Matic cryptocurrency (from the Polygon blockchain), which went from 30 cents on June 18 to almost $1 today, or even qnt (Quant), which was $45 on June 18, over $100 in day.

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