Bitcoin traders still favor new $20K lows as Ethereum hits $2K

Market Analysis

Bitcoin (BTC) is still due to return to near $20,000, fresh analysis warns as BTC/USD attempts to retest multi-month highs. 

Buy-the-dip set for invalidation at $20,700

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD staging a second run-up to near $25,000 on Aug. 13, so far seeing rejection.

The pair had gained over $1,300 overnight, but as bulls again ran out of momentum near crucial resistance, few were optimistic over Bitcoin avoiding a deeper comedown.

“One last high to rekt early shorts,” popular trading account Il Capo of Crypto told Twitter followers.

Similarly cautious was fellow trader Jibon, who said that he would even prefer to wait and “buy higher” than spot price to rule out any trend reversals.

More bullish was trading account Credible Crypto, who argued that any corrections would still be bullish unless $20,700 was broken.

“Relief went a big higher than expected but looks like a liq grab of local highs and still think a move down to green before continuation to 28k+ makes most sense,” he commented on an accompanying chart.

“Cleaned up the chart a bit to make things more clear. Invalidation at 20.7k until then bullish af on any dips.”

“Targeting high 20s of $27,000 – $28,000 as long as we remain above the range high,” Crypto Tony added, continuing a strategy from earlier in the week with $24,500 a key support level.

Ethereum returns to $2,000 after 11-week hiatus

On altcoins, meanwhile, it was Ether (ETH) in the driving seat after an overnight surge took ETH/USD above $2,000 for the first time since May.

Related: Crypto markets bounced and sentiment improved, but retail has yet to FOMO

At $2,020 so far, the pair achieved its best performance since May 23, seeking to consolidate near the highs at the time of writing. 

While on-chain analyst Material Scientist alluded to the worst being yet to come for ETH bulls, Ethereum’s crypto market cap share nonetheless crossed 20%, while Bitcoin’s fell under 40%, according to data from CoinMarketCap.

As Cointelegraph reported, a dedicated indicator already called the start of “alt season” with a stronger signal than at any time since June 2021 this month.

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