In yesterday’s sessions, BTC/USD pairs struggled to clear stubborn resistance at $12K and corrected lower to trade at the current price of $11,273.
The bears and the bulls are currently engaged in a battle for dominance with buyers aiming to keep BTC prices above $12,000. However, renewed selling pressure forced bitcoin to correct lower towards $11.2K.
In the coming sessions, BTC buyers need to keep prices above the trend line support near $11,200 to kick start a fresh increase.
However, if the bears manage to break below that crucial line of support, the king coin could see an extended drop towards $10,500.
Luckily for BTC buyers, a strong support base seems to be forming near $11.4K on the hourly chart. A clear break above this level could boost the chances of a new rally toward the $11,800.
BTC Price Rally Has a Long Way to Go
Despite the bears cutting short BTC’s recent price rally toward $12K, the monthly BTC chart shows that this rally still has a long way to go.
To support this scenario, economist and crypto analyst Raoul Pal shared that BTC only recently surmounted the resistance holding it back at $10K.
According to his chart shared above, the recent BTC price rally is still “super early days” for the flagship cryptocurrency’s uptick.
Moreover, Pal noted that institutional investors would soon realize that the digital coin is highly undervalued, leading to an influx of capital in BTC markets.
Part of the case for a far-reaching BTC rally is the US dollar’s unrelenting decline as FED stimulus packages pump more money into the global economy.
The more the USD inflates, the more relative value it imparts into BTC due to its capped supply at 21 million coins.
Ethereum Price in Consolidation
ETH is trading down 5% at $370 during press time. This price range is where the altcoin has been consolidating gains in the past few days. Traders now wait for another catalyst to drive prices higher.
The chart below shows that Ethereum ran into some stubborn resistance after reaching the $400 level last week. As a result, the second-largest cryptocurrency has created a pattern known as a bullish pennant.
The pattern visible in black on the chart above indicates that the ETH price will likely climb higher after the current consolidation comes to an end.