Bitcoin hits two-month resistance amid rally in stocks

Bitcoin (BTC) hit the top of a stubborn trading range on August 11 as an awkward rally decidedly gripped risky assets.

Bitcoin Withdrawal Warnings Strengthen Near $25,000

Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair hit highs of $24,750 on Bitstamp, marking its best performance since June 13.

Both had attempted several breaks towards the top of the range in previous weeks, all of which failed in the face of heavy selling pressure.

New US inflation data released this week, however, catalysed the long-awaited turnaround, with bitcoin and altcoins rising in line with stocks, July’s consumer price index (CPI) suggesting the peak inflation.

On August 10, the day of the release, the S&P 500 and Nasdaq Composite Index gained 2.1% and 1.9% respectively. Meanwhile, the BTC/USD pair saw a daily candle around $900.

However, rather than being optimistic, market commentators were anything but confident when the situation eased. According to the investor Raoul Pal, the mood of the post-CPI rally wore like a blackberry.

“This seems to be one of the rallies I hate in stocks for a few years,” he said. declared your Twitter followers in a dedicated thread.

Still, Pal said there was a “very good chance” that stocks were upside in June.

Predicting a major change in direction in the crypto sector, well-known trader and analyst Il Capo of Crypto believed that $25,500 is the most likely target before the start of a new downturn.

Almost there. https://t.co/oJFpD5BVz9 pic.twitter.com/2pjpUgw85T

— il Capo Of Crypto (@CryptoCapo_) August 11, 2022

We are almost there. https://t.co/oJFpD5BVz9 pic.twitter.com/2pjpUgw85T
— il Capo Of Crypto (@CryptoCapo_) August 11, 2022

“BTC is up almost 40%. Huge potential for backup ahead. Buy the drop,” a for follow up Jibon in other comments on Twitter.

Crypto Tony, is a little more optimistic declared that the hodlers were to feast if the top of the range was kept.

Looking at the possible similarities between the current bitcoin chart and the March 2020 chart, BTCfuel said that another breakout cannot be ruled out.

Tea #Bitcoin The March 2020 bull trap and crash is quite similar to the current setup. Bitcoin looks like a breakout right now pic.twitter.com/WkITQ2G7py

— BTCfuel (@BTCfuel) August 10, 2022

#Bitcoin’s March 2020 Bull Trap and Crash is very similar to the current setup. Bitcoin seems to be on a collision course right now pic.twitter.com/WkITQ2G7py
— BTCfuel (@BTCfuel) August 10, 2022

Doubt arises on the rally of the Ether

The impressive performance of altcoins put the largest altcoin, Ether (ETH), in the spotlight after the ETH/USD pair gained more than 11%.

ALSO READ: Bitcoin Dominance Hits 6-Month Low as Indicator System Announces New “Altcoin Season”

The pair continued its gains throughout the day, surpassing $1,900 for the first time since June 6 and now approaching the psychologically significant $2,000 mark.

The IPC’s momentum added to an already excited Ether market, with the Goerli testnet merge – a key preparatory step for the full merge event in September – successfully completed.

“Since the start of this bullish market rally in mid-June, Ethereum has become significant in terms of trading volume compared to Bitcoin. In the past few days, the dominance of Ethereum and Bitcoin was even crossing over,” wrote Maartuun, a contributing analyst at on-chain data platform CryptoQuant, in an August 10 blog post.

Maartuun warned that historical precedent did not favor a sustained rally across the crypto market if ETH continued.

“Ether is obviously very popular on the exchanges, because of the winning lead. It makes sense because of the upcoming Fusion 2.0,” he continued.

“However, in my five years of experience in the cryptocurrency market, ether-led rallies are usually not the healthiest thing for the market. As you have already read in my previous analysis, I am very conservative. Especially since Ether has already moved more than 100% from its lowest levels”.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. All investment and trading moves involve risk, you should do your own research before making a decision.