BTC is following a sideways, while ETH is roaming around a new ATH

BTC continues to trade sideways, and if we see the pattern then it is trading within a pennant pattern. However the price has moved above the 20-day moving average, so we can say that bulls and bears are fighting for further movement.

Data from expert websites like Cointelegraph Markets and TradingView shows that BTC traded in a range between $34,955 and $37,850 over the weekend but traders are following the buy at a dip strategy, but it appears like they lack bullish conviction.

Recently, JPMorgan research analyst Nikolaos Panigirtzoglou has stated the importance of bitcoins breaking the level of $40,000, then only the bulls will win the fight. And if the bears would win, then the correction would be adverse than the last week.

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According to Yves Renno, Head of Trading at Wirex, Bitcoin is in a “consolidation above the $35,500 level” but Renno is still positive about the uptrend in the market. And he also believes that the recent correction was a great opportunity for institutional-size investors to buy for large as evidenced by an increase in the number of BTC whales and a “low to average” miner supply.

He also says that investors should be ready for higher volatility with a medium uptrend in the market. His exact words were,
“The open interest is always hitting new ATHs, which makes the market even riskier since it implies that there is a higher risk of liquidation during a correction, meaning collateral sold, which typically amplifies the corrections.”

By the launch of the Eth2 and upcoming CME futures launch in February, Renno sees a “continued strong price momentum” by ETH’s. ETH 2.0 will boost the Defi economy and the ecosystem as a whole will benefit from a decrease in transaction fees and less congestion.

Also Read : Exchanges may run out of reserves ETH soon

The regulatory front will see some positive developments :

1. With the news of the selection of Gary Gensler, a professor who previously taught a blockchain and cryptocurrency course at MIT, as Chairman of the United States Securities and Exchange Commission by newly elected President Joe Biden, has provided a great boost to cryptomarket sentiments.

2. Stephen Harper, the former prime minister of Canada has given a vote of confidence to Bitcoin. As he said that there may be a place for Bitcoin as part of “a basket of reserve currencies to replace the dollar.”

3. While Bitcoin price has been trading sideways, crypto experts have been suggesting that Eth should also breakout and follow BTC’s pattern. Within the last hour, Eth did manage a bullish breakout in its BTC pair and USD pair.

4. Despite the correction on Monday, Polkadot (DOT) also continues to be one of the top-performing altcoins, giving a 75% increase in price last week. Currently, DOT trades at $16.80.