Cred & DonAlt: Traders Should Focus On Bitcoin And Ethereum Right Now
According to two prominent crypto analyst known as Cred and DonAlt, crypto investors should have all eyes on Bitcoin (BTC) and Ethereum (ETH) at the moment.
In the latest edition of TechnicalRoundup newsletter, Cred and DonAlt highlight that the top two crypto assets by market cap both still look very good after recently rallying to new all-time highs.
“The market retested and closed above the all-important weekly support at $58,000. The technicals are bullish.”
At the time of writing Bitcoin trades at $61,207, approximately 10% down from its October 20th all-time high of $67,276, according to CoinMarketCap.
According to the same source, Ethereum trades at $4,514 at time of writing and is down about 2% from its ATH of $4,664, which it hit on Wednesday earlier this week.
Looking into ‘worst case scenario’ for Bitcoin, the two analysts say that if the breakout doesn’t last, investors should look for support level at $50,000. If that level doesn’t hold, it would likely mean BTC’s uptrend would be over.
However, aside the worst case scenario, Bitcoin looks strong at the moment, and say that traders should look for clean, round numbers like $70,000 or $80,000 in terms of targets for a move higher. The analysts also point out traditional markets aren’t presenting Bitcoin with volatility risk.
“The S&P 500 is steadily making new highs, so the likelihood of correlated weakness as a result of traditional markets tumbling is reduced. While the lack of momentum has some participants concerned, it’s hard to be bearish above support and at the all-time high. We will change our minds if the evidence changes.”
Looking into altcoins, DonAlt and Cred are very bullish in short term:
“Our attitude towards altcoins is lukewarm at best given the majors are on the move. We expect Bitcoin and Ethereum volatility to create a liquidity vacuum of sorts among altcoins, at least in the short term.
Long altcoins = short Bitcoin/Dollar (and Ethereum/Dollar) volatility. Therefore, in our view, positioning for strength in altcoins as the majors are making new all-time highs is not the most attractive bet in the market.”
