The crypto winter has been getting colder, with significant cryptocurrencies sliding lower, albeit posting occasional relief gains. Apart from the bearish storm being ignited by events such as geopolitical tensions, the Terra-linked stablecoin storm and the financial distress facing crypto firms, the Federal Reserve has also been keeping markets pinned down with its aggressive monetary policies.
According to some experts, while most of those snags may now be behind us, the market could still face a final flush before embarking on an enduring uptrend. However, before the final capitulation kicks in, crypto prices could remain buoyed in the short term.
Gareth Soloway, head trader at VerifiedInvestingCrypto, believes that BTC will continue surging inside a mini-bullish channel it has been trapped in since bouncing off the 2019 high of $18,000 in June but may face roadblocks along the way. “Right around $25k, you are going to start running into a little bit of resistance…interestingly, the terra luna collapse was around that range… so expect some trouble there,” said Gareth in an interview on Saturday.
According to him, should the price manage to rise above the $25k-$25.5k resistance zone, there is a good chance that it could proceed to about $28k or $30k before another dump unfolds.
It should be recalled that the $28k range saw a lot of investors scoop BTC in the hope that that support would hold. According to Gareth, those buyers were left holding their bags after the market plummeted following Terra’s collapse. When the price finally returns to that level, those people are likely to sell to break even, igniting a more significant sell-off.
The pundit also painted a similar scenario for Ethereum, noting that the price could push to $2500 if it stays above the $1,700 monthly support. Zooming out, he sketched a downtrend line from Ether’s all-time high, adding that “if we get a ridiculous strong move,” $24k or $25k would likely be the maximum upside prices for the cryptocurrency.
He, however, warned investors to roll with caution, stating that at some point, we could see another pullback, possibly even making new lows. “I do caution people that this is a bear market …bear market rallies can be very alluring…id be very cautious, its already almost 100% off the lows…,” he added.
As of writing, Bitcoin was trading at $23,285 after a 2.06% increase in the past 24 hours. On the other hand, Ethereum was exchanging hands at $1,655 after soaring 4.54% in the past day, as per data from CoinMarketCap.