Will Bitcoin and Ethereum Takeoff at $25,000 and $2,000 respectively this week? Bitcoin is advancing to start the week on Monday, recovering above $22,000, while Ethereum remains stable. Over a week, however, the two most important cryptocurrencies on the market posted an identical performance (+12%), at the start of a week that could prove to be lively.
Remember that Bitcoin is coming back from afar, the cryptocurrency having parked a low at $18,540 at the start of last week, its lowest level in about a month and a half. However, the cryptocurrency then started a strong rally, which corresponded to a certain return of optimism which was also visible on the stock exchanges.
The scenario is the same on Monday morning, with optimism boosted by Ukrainian progress in the war against Russia, which gives hope for an end to the war faster than expected. The Bitcoin price, like that of Ethereum and most other cryptocurrencies, is benefiting today.
The fate of Bitcoin and Ethereum will largely depend on US inflation this week.
However, caution will remain in order, given a key event expected tomorrow, which could influence cryptocurrencies like other global markets.
Traders are indeed anxiously awaiting the release of inflation data from the United States, with the CPI for August tomorrow at 2:30 p.m., data that could significantly influence expectations for the next Reserve meeting. US Federal (Fed).
Indeed, higher-than-expected inflation could bolster expectations of continued aggressive monetary tightening, and therefore weigh on Bitcoin and other cryptos.
Conversely, weaker inflation than expected would reduce pressure on the Fed, and allow it to consider a slowdown in rate hikes, which would have bullish consequences for Bitcoin, Ethereum, and other cryptocurrencies.
For now, money markets are pricing in a nearly 90% chance that the Fed will hike rates another 0.75% for its next meeting on September 21.
A decline in this probability, in favor of a more moderate 0.5% rise following the US CPI tomorrow could be a major bullish catalyst for Bitcoin and Ethereum.
Target $25,000 if Bitcoin exceeds this threshold.
From a graphical point of view, Bitcoin's rise since this morning clearly improves its graphical profile. From now on, the threshold of $22,000 regained this morning is the first potential support to take into account.
Then, the $20,700/21,000 zone will be the next potential support, before the major psychological level of $20,000.
On the upside, the $22,500 zone, which has acted as support several times in recent months, will be the first potential obstacle. Then the way will be clear until the key threshold of $25,000.
It should be noted, however, that although a return above $25,000 can have a significant psychological impact, Bitcoin's bearish background trend on a daily basis will only start to cancel out if the trendline is crossed. visible since 2021 high and currently located around $27,000.
The key threshold of $2000 in sight on Ethereum?
Regarding the price of Ethereum, the second most important cryptocurrency on the market, the threshold of $1800 constitutes an immediate resistance, before $1900. It is then directly the major psychological threshold of $2000 that could be targeted.
However, to challenge the bearish underlying trend of ETH in daily data, the crossing of a trend line visible from the November 2021 high and currently located at around $2200 will be necessary.
To sum up, both Bitcoin and Ethereum are currently showing encouraging starts to the week which suggests the possibility of reaching key objectives as early as this week, but chart confirmations are still necessary at this stage.
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