Bitcoin Soars, Poised to Challenge All-Time Highs Before Halving Event

Bitcoin (BTC) has broken out of a bullish descending channel, signaling a potential rally towards a new high before the upcoming halving event. Ethereum (ETH), while moving higher, remains underperforming and faces resistance at its mid-March high. Coinbase (COIN) continues to benefit from increased market turnover, with a bullish bias and a target of $343.

Bitcoin Rallies, Set to Test Record Highs Ahead of Halving Event

Bitcoin (BTC) has surged by an impressive 12% since Sunday's market open, driven by a renewed surge in demand for the world's premier cryptocurrency. This bullish momentum has broken a short-term descending channel, indicating a strong technical signal for further gains in the near term.

The recent rally positions Bitcoin firmly on the path to challenge its previous record high, potentially even before the highly anticipated halving event next month. This event, which occurs every four years, reduces the supply of new bitcoins entering the market, typically leading to price increases.

Technical indicators support the bullish outlook for Bitcoin. The Average True Range (ATR), a measure of volatility, is currently at a multi-month high. This suggests that Bitcoin's price swings are expanding, indicating increasing market momentum. Additionally, the Commodity Channel Index (CCI) indicator is approaching overbought territory, suggesting that the market is heating up.

While the overall trend remains bullish, short-term pullbacks are always possible. Initial support for Bitcoin is expected around $69,000, followed by a more significant support level at just under $65,000.

Ethereum Lags Behind, Waiting on Spot ETF Approval

Ethereum (ETH), the second-largest cryptocurrency, has also witnessed gains in recent days. However, its performance has been more subdued compared to Bitcoin. While Bitcoin has already established a new all-time high, Ethereum remains approximately 30% below its peak and is struggling to regain its mid-March multi-month high of around $4,100.

The pending approval of Ethereum spot exchange-traded funds (ETFs) has weighed on the price of ETH. Van Eck, one of the leading ETF providers, had a deadline of May 23rd for approval, but it now seems unlikely that the ETF will be greenlit by that date. This delay has dampened investor enthusiasm for Ethereum, potentially limiting its upside potential in the short term.

Should the ETF approval be pushed further into the future, Ethereum may continue to underperform Bitcoin. Any further upside moves for ETH will likely be capped by the resistance level at its mid-March high.

Coinbase Rides the Crypto Wave to New Heights

Coinbase (COIN), the largest cryptocurrency exchange in the United States, has benefited significantly from the increased interest and trading volume in the crypto space. Coinbase shares have rebounded to highs last seen in December 2021, serving as a reliable barometer of the overall crypto market's performance.

Technically, Coinbase is trading near the 61.8% Fibonacci retracement level of its May 2021 – January 2023 sell-off. The next target for Coinbase is the 78.6% retracement level at $343. Support on the weekly chart remains at the 50% retracement level at $230.

Conclusion: Bullish Outlook for Bitcoin, Ethereum, and Coinbase

The overall crypto market outlook remains bullish, with Bitcoin leading the charge. The recent technical breakout and strong demand suggest that Bitcoin is poised to test record highs ahead of the halving event. Ethereum, while lagging behind Bitcoin, is still moving higher but faces headwinds from the delayed ETF approval. Coinbase continues to benefit from the increased market activity, reflecting the broader bullish sentiment in the crypto space.

Despite the inherent volatility of the cryptocurrency market, the bullish technical indicators and positive market fundamentals support a strong outlook for Bitcoin, Ethereum, and Coinbase in the near term.