Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) were surging more than 8% and 9%, respectively, on Friday in an attempt to break up bullishly from a rising channel pattern the apex cryptocurrencies had developed on their daily charts.
The move came on higher-than-average volume, which indicates traders and investors have taken a renewed interest in the sector after a long-term downtrend.
During the trend, Bitcoin declined 52.27% from its Nov. 10 all-time high of $69,000 to find a Jan. 24 bottom at the $36,640 mark. Ethereum plummeted 55.65% from its all-time high of $4,867.81 on Nov. 10 and found a bottom on Jan. 24 at $2,150.54.
Data from Tuesday indicated whales may have begun accumulating Bitcoin as smaller players capitulated and sold their positions. Friday’s price action and volume indicate the larger players may have decided it was time to showcase a reversal and bring the cryptos back into a bull cycle.
See Also: Why Bitcoin- And Ethereum-Related Stocks Are Trading Higher Today
The Bitcoin Chart: On Friday, Bitcoin was attempting to break up bullishly from the upper ascending trendline of the rising channel pattern. The move higher has, so far, caused the crypto to regain support at the eight-day and 21-day exponential moving averages (EMAs). If Bitcoin can continue to trade above the 21-day EMA, the eight-day will eventually cross above it, which would be bullish.
- Bitcoin is trading in a fairly consistent uptrend with the most recent lower low falling at the $36,259 mark on Thursday and the most recent higher high printed on Friday at $40,600.
- The move higher also caused Bitcoin to break up from a long-term downtrend that has been holding the crypto down since reaching its all-time high.
- Traders not already in a position may want to wait for either a backtest of the descending trendline or the next higher low to form before entering.
- Bitcoin has resistance above at $42,223.66 and $44,850 and support below at $39,600 and $38,105.
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- Ethereum is trading in a confirmed uptrend with the most recent higher low printed on Thursday at the $2,572.66 mark and the most recent higher high created on Friday.
- Like Bitcoin, traders and investors may want to wait for the next higher low in the uptrend to take place before entering into or adding to a position.
- Ethereum has not yet broken up from its own descending trendline that has been pushing the crypto down since Dec. 1. Traders may want to wait to enter on a break of the trendline if it happens on higher-than-average volume.
- Ethereum has resistance above at $3,057.82 and $3,240.01 and support below at $2,890 and $2,609.02.
