How high can bitcoin and ether go?

The cryptocurrency market is experiencing a period of calm, with the two major cryptocurrencies returning to the levels of a month ago. But how high can they go up? BFM Crypto takes stock.

For those who follow the course of cryptocurrencies in real time, this information will not have escaped them. In recent days, the queens of cryptocurrencies, bitcoin and ether, have regained strength.

As of 5:30 pm today, one bitcoin is worth $ 22,200 according to data from Coinmarketcap. It has recovered to the levels of a month ago, when it was weakened by the crypto-crash in mid-June following the Celsius episode. For its part, the ether is worth $ 1,480, experiencing excellent progression even for a month.

Plus 28% in a week for the ether

The prices of bitcoin and ether increased respectively by more than 4% and 7% in the space of a day, but above all by more than 8% and … by 28% in the space of a week per ether. How can such a progression be explained? It can be associated with the finally precise announcement of a date for The Merge of Ethereum event which is expected to take place on September 19th. If the event took place on that day (having so far been often postponed), it would be a real revolution in the cryptocurrency sector: see our article on The Merge.

Beyond the rise of ether, the cryptocurrency market appears to have overcome the last two crises, which have put many companies in turmoil, from the blockchain Terra to the Singaporean investment fund Three Arrow Capital to the Celsius lending platform.

“The rise in cryptocurrency prices is linked to a general lull in traditional markets and risky asset classes,” explains Interactiv Trading partner BFM Crypto Xavier Fenaux.

Furthermore, for many months the cryptocurrency market has been correlated with traditional markets, mainly at the start of tech stocks (the Nasdaq).

“We saw that traditional markets did not react too badly to the inflation announcement in the US last week. (9.1% in June in a year, ed). It was quite a nice surprise, completely unexpected. The market is already projecting itself on 2023 and therefore the “worst” is already integrated in the prices “, adds the latter.

What scenarios for bitcoin and ether?

If cryptocurrencies are facing good progression, it should not be forgotten that they have lost more than 70% of their value from their all-time high last November. On November 10, in fact, a bitcoin was worth 69,000 dollars, compared to just over 22,000 today.

So, if the cryptocurrency market experiences a short-term rebound, one wonders if it can last and how far cryptocurrencies can go back. To understand the “bear” market (bear market) and “bull market” (bull market), see our article here.

As for bitcoin, “it is still unclear whether the 2022 low is behind us, we are moving from a bear market to a short-term rebound. If bitcoin settles above $ 22,000 for several days, there will be a psychological shift. in the market from anxiety to positive in the short term. The next level should be the low point of last summer, around $ 28,000-30,000, “said Xavier. Windows.

However, bitcoin’s strength has diminished since the last cryptocurrency crash in June. Its dominance, that is its reference point on the global cryptocurrency market (estimated at over 1,000 billion capitalization) has thus increased from 48% to 42% in the space of a month.

“This means that investors are now much more interested in everything that is not bitcoin, and therefore we can see a nice progression of some altcoins. (Term referring to cryptocurrencies other than bitcoin, ed)”, points out Xavier Fenaux.

These other cryptocurrencies on the rise

This progression is observed on the one hand on the side of the ether. The cryptocurrency has grown much faster than bitcoin, breaking above its one-month resistance at $ 1300.

“As long as we stay above $ 1,300, we are seeing a near-term bullish reversal. There may be a medium-term technical resistance level around $ 1,800-$ 2,000 which is likely to trigger some interruptions if we go that far.” the expert.

But other cryptocurrencies have made good progress within a month, starting to please traders. This is the case, for example, of the cryptocurrency Matic (from the Polygon blockchain) which went from 30 cents on June 18 to almost 1 dollar today or even qnt (Quant), which was at 45 dollars on June 18, over 100 dollars. today.

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