Bitcoin is at a make or break point in the current mini-cycle, having turned what was looking like a continuation of its recent highs into a fall and a bounce off support at $8,600. The next 48 hours could be critical in determining whether we are in for a pre-halving pump or a pre-halving dump, with Ethereum too needing to hold support to keep thoughts of a mini alt season alive.
Bitcoin Needs to Kick on From $8,600
Having dropped to the support at $8,600, it is critical that Bitcoin stays above this support if it wants to continue to make tracks in advance of the halving. The recent high of $9,450 is the bullish target, the topping of which could see us head to the $10-$11,000 region, an almost unthinkable state of affairs given that Bitcoin was crawling out of its $3,850 gutter in March.
On the bearish side, this could well be a bull trap to encourage confidence before the rug is pulled. A drop and high timeframe close below $8,600 would mean that we are likely headed to the $7,800 region to test support there.
Ethereum Sailing in a Similar Boat
Having been rejected at the key ₿0.026 level last week, Ethereum is now in a similar situation, needing to hold its support at ₿0.023 if it wants to see further bullish continuation:
Of course, ETH is a bellwether for alts in general, and so losing this level will suggest that the bulk of the momentum still belongs to Bitcoin and that the liquidity will not be flowing into alts as has been hoped.
This will naturally be the situation should Bitcoin begin to climb to potential yearly highs, with all the money being sucked back into it again and putting the potential for a mini alt season firmly on the back burner.