Bitcoin Aiming for 39,000? BTC/USD & ETH/USD Price Setups

Bitcoin, BTC/USD, Ethereum, ETH/USD – Outlook:

• Bitcoin and Ethereum have cleared above minor resistance.
• Important for BTC/USD and ETH/USD to sustain gains if the rebound is for real.
• What is the outlook and what are the key levels to watch?

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Cryptocurrencies have surged on hopes that the US could soon approve a bitcoin exchange-traded fund. Technical charts suggest there is room for further rise.

BITCOIN: Cracks above the key barrier

Bitcoin has broken above a crucial hurdle at the July high of 31800, triggering a double bottom (the June and September 2023 lows), potentially opening the way toward 39,000. The surge in momentum follows a rise above another vital barrier on the 200-day moving average, roughly coinciding with the end-August high of 28150. The move on the daily charts coincides with a rise out of the bearish Ichimoku cloud on the weekly charts – BTC/USD was last above the cloud back in 2021.

BTC/USD Weekly Chart

Chart Created by Manish Jaradi Using TradingView

Signs of upward momentum emerged last month after a rebound from strong support at the June low of 24750, which kept intact the higher-top-higher-bottom formation since the end of 2022. Importantly, this keeps alive the possibility of an extended recovery given the 2021-2022 decline, reinforcing the bullish medium-term trajectory, first highlighted earlier this year – see “Bitcoin Technical Outlook: BTC/USD Turns Bullish”, published January 18.

BTC/USD Daily Chart

Chart Created by Manish Jaradi Using TradingView

Dips could be limited for now, with immediate support on the 10-hour moving average (now at about 33,000), and stronger support on the 30-hour moving average (now at about 31600).

ETHEREUM: Holds above vital support

Ethereum has been attempting to break above a key hurdle on the upper edge of a sideways channel since August (that comes in at about 1745). A decisive break above could open the door toward 1970, the price objective of the pattern.

ETH/USD Weekly Chart

Chart Created by Manish Jaradi Using TradingView

The bullish momentum started after ETH/USD at a key cushion on the lower edge of the channel at about 1550, not too far from the lower edge of a downtrend channel since April. On the weekly charts, ETH/USD has held above the 200-week moving average, an uptrend line from last year, around the lower edge of the Ichimoku cloud.

ETH/USD Daily Chart

Chart Created by Manish Jaradi Using TradingView

Having said that, for the recovery to continue, ETH/USD would eventually need to cross above the April high of 2145, raising the odds of an extended rebound toward 2400 (the 38.2% retracement of the 2021-2022 decline).

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— Written by Manish Jaradi, Strategist for DailyFX.com

— Contact and follow Jaradi on Twitter: @JaradiManish