Bitcoin’s recent surge past the $100,000 mark may be followed by a period of consolidation, according to analysts. While the flagship cryptocurrency briefly touched $103,844.05 last Thursday, it has since retreated and is currently down approximately 1%, according to Coin Metrics. Experts predict this stagnation could persist for another two weeks before the uptrend resumes.
Katie Stockton, managing partner at Fairlead Strategies, an independent research firm and investment advisor, noted “short-term momentum is weak” in a Monday report. The failure to hold above $100,000 has triggered a short-term “sell” signal, suggesting a period of consolidation. However, Stockton maintains a bullish medium-term outlook, stating that “intermediate-term indicators point higher, supporting a bullish bias beyond the short term. This suggests a severe pullback can be avoided.” Fairlead Strategies places Bitcoin’s support level around $84,700, near its 50-day moving average, with resistance at $100,000.
Ether, the second-largest cryptocurrency, also experienced a rally last week, reaching the $4,000 mark for the first time since March. Similar to Bitcoin, its short-term momentum has stalled. Stockton believes Ether is poised to surpass $4,000 again after a period of consolidation. While Bitcoin is expected to outperform in the near term, Stockton suggests Ether is better positioned for medium-term gains.
Oppenheimer chart analyst Ari Wald observed that Ether, unlike Bitcoin, hasn’t reached a new multi-year high, “indicating ETH has been relatively weaker.” However, he maintains a positive outlook, stating, “[Ether’s] March 2024 peak marks resistance at $4,100 and support at the minor breakout above its July 2024 peak at $3,500. The crypto’s positive trend argues for a breakout to a new all-time high over the coming months.”
Rob Ginsberg of Wolfe Research concurs with the near-term consolidation forecast for Ether but emphasizes a “very compelling multi-year base.” He anticipates Ether will “continue to grind its way through” the $4,100 to $4,800 resistance zone. Ginsberg believes a breakout above $4,866 could propel Ether to $6,000 or higher.
