In a compelling turn of events, the cryptocurrency market is experiencing a robust bullish momentum, marked by assertive control from Bitcoin and Ethereum bulls. A noteworthy development in this surge is the liquidation of shorts valued at approximately $60 million, indicating a potential shift in market sentiment as the weekend approaches.
Upon close examination of current charts, Bitcoin showcases resilience by maintaining a position above the critical support level of $40,000. The recent rebound from this level, a historically formidable psychological barrier for both bulls and bears, is a positive signal. Sustaining above this support level positions Bitcoin for a potential challenge at the next key resistance of $42,000. Analysts anticipate a consolidation phase around this level before a potential upward push. Conversely, a breach of the $40,000 support may prompt traders to seek support in the vicinity of $38,500.
Meanwhile, Ethereum exhibits signs of recovery following a recent sell-off. Finding support near the $2,100 mark, just above the 200-day exponential moving average, is a noteworthy development, often considered a significant indicator of long-term trends. Should Ethereum maintain this rebound, analysts predict an immediate resistance at $2,400, with a breakthrough paving the way to $2,500, a level with historical significance as both support and resistance. Conversely, a drop below the current support could lead to a test of the next support zone at $2,000.
The liquidation heatmap provides additional insights, highlighting the mounting pressure on short sellers as the market moves against their positions. This trend is particularly pronounced in Bitcoin and Ethereum, where a substantial number of short positions have been closed swiftly. Overall, the cryptocurrency market presently exhibits bullish indicators, with resilient support levels underpinning the prevailing positive sentiment.
