With Bitcoin set to break the crucial resistance at $23,000, all eyes are on Ether as its blockchain protocol moves from proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanism. This shift is scheduled to occur on Thursday.
Bitcoin is currently trading at $22,143, as per data from CoinMarketCap. Ethereum is down 3.01% in the last 24 hours and changing hands at $1,691. In the last seven days, the topmost cryptocurrency gained 12.14%, while the second-largest cryptocurrency in market value gained 3.59%. Both digital assets remain highly correlated. Data shows the correlation remains high at 0.89 when the measurement is narrowed to 10 days. Analysts believe a decrease in ETH’s supply should lead to an increase in ETH’s value.
Sentiment in the cryptocurrency market remains bullish. It should be noted that the bullish momentum led to price strength moving towards the overbought territory. Bitcoin and the wider market are turning bullish ahead of the Ethereum Merge, or maybe the elusive bottom is finally in. According to TradingViews chart data, Bitcoin’s relative strength index on June 27 and August 15 dropped to lows not seen since 2019. However, the metric has now rebounded from a near oversold 31 to its current 38.5 reading. A bullish divergence in the metric has been observed. The MACD crossed over as purchasing volume surged. Bitcoin is having another go at breaching its current 90-day range.
Bitcoin price, since January 21, has been range trading in what turned out to be successive bear flags that see a continuation to new yearly lows. BTC often encountered resistance at overhead descending trendline. It’s likely to push secure a few daily closes above the trendline resistance and set a daily higher high above $25,400, or even make a run for $30,000.