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The crypto market ended the day very bullish as the price of both Bitcoin and Ethereum both found support, reversed, and started rallying back up after a very bearish trading day yesterday Must Read: Bitcoin Just Broke Through This Key Level! Sell?.
However, the crypto bulls are not out of the woods yet! We have been seeing a growing price correlation between the Bitcoin price and the Ethereum price.
In recent days, Bitcoin has been closely following Ethereum, buying when it is buying and selling off when Ethereum sells off too.
If this correlation continues to hold on to tomorrow, then we can clearly state that this current bullish rally in Bitcoin has a very high probability of ending up as a fakeout! Unless Ethereum can finally break through the ascending channel pattern it has been trading in for the past few weeks now!
As far as Ethereum continues to range within this channel, this is a clear indication of weakness and the lack of bullish momentum in both Bitcoin and the Altcoin market in general.
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What Next? Watch This Level!
The next level we are watching for Ethereum is the asending channel resistance! There is a very high probability that we might see this resistance come into play soon!
If this channel resistance holds, we can expect to see history repeat as the Ethereum price sell-off back down to the base of the channel in the coming days!
How Will This Sell Off Affect Bitcoin
Everytime Ethereum has failed to break through this resistance and sold-off from these highs, we have seen a similar bearish pattern play out in the Bitcoin price. This price coleration might stand true again in the coming days!
If Ethereum sells-off from these ascending channel resistance, we might see the Bitcoin price follow it closly! A Bitcoin sell-off like this woukld likly push the Bitcoin price back down below the $48,072 key horizontal level in the 4-hour timeframe.
This means that this bullish breakout we are seeing play out in Bitcoin might actually be a price fakeout!
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