Bitcoin, Ethereum Signal Bull Market, But Retesting Possible

On the 12-hour price charts, both Bitcoin and Ethereum have shown a bullish market structure, with key retracement levels serving as support. Despite stalled momentum and buying pressure, the higher timeframe charts indicate a bullish bias. Whale accumulation is ongoing, but liquidity close to current Bitcoin prices could hinder significant breakouts. Ethereum faces short-term resistance, while its OBV lacks momentum, suggesting a potential pause before the next rally.

Bitcoin and Ethereum Showcase Bullish Market Structure, But Retest Remains a Possibility

Introduction

The cryptocurrency market has witnessed a bullish trend in the past week, with Bitcoin (BTC) and Ethereum (ETH) showcasing a strong market structure. The key retracement levels have been defended so far, but the possibility of a retest cannot be ruled out.

Bitcoin: Stalled Momentum and Accumulation

Bitcoin has seen a stalling of buying pressure and momentum. The Fibonacci retracement levels indicate that the 50% retracement level acted as support in mid-March. Bitcoin was trading at $50k at press time, demonstrating a decent reaction to support.

However, the Relative Strength Index (RSI) on the 12-hour chart stands at only 57, suggesting bullish momentum but not significant strength. The Chaikin Money Flow hovers at +0.01, requiring an ascent above +0.05 to indicate a substantial capital inflow.

The market structure on the 12-hour chart remains bullish. A decline below $60.7k would shift the market structure to bearish.

Ethereum: Resistance at LTF, Accumulating Trades

Ethereum has also experienced a cooling of momentum over the past two weeks. Its 12-hour RSI indicates bullishness at 54. The market structure is likewise bullish, and the 78.6% retracement level has been well-defended by buyers.

Despite the buying volume in the preceding ten days, the On-Balance Volume (OBV) failed to initiate an uptrend. It has retraced to levels approaching January highs, even though ETH's price has surged by 40%.

This lack of demand suggests Ethereum bulls may require time to regroup before initiating another rally. At press time, ETH faces near-term resistance at $3680.

Whales Accumulate, Speculators Remain Bullish

Whale accumulation of both Bitcoin and Ethereum has been significant, indicating a bullish outlook for the long term. Liquidity levels are high near current prices, potentially hindering breakout attempts in either direction.

The futures market exhibits bullish conviction among speculators. Open Interest has risen considerably since March 17th, indicating increased participation and optimism.

Conclusion

Bitcoin and Ethereum maintain a bullish market structure, but the possibility of a retest remains. The stall in momentum and lack of significant capital inflow suggest cautiousness among traders. However, whale accumulation and bullish sentiment in the futures market offer positive signals for the long term.

It is crucial for investors to monitor key support and resistance levels, along with technical indicators, to make informed trading decisions. The cryptocurrency market remains volatile, and prudent risk management should always be a priority.