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Bitcoin and Ethereum Leap Again, Bullish Forecasts Reinforced

Steve Miley trader
Updated 23 Jan 2023

We have recently highlighted the mounting bullish technical statements and outlooks from across the broad cryptocurrency markets. Here we again look at Bitcoin (BTC) and Ethereum (ETH) charts that have added to their bullishness and review the upside forecasts for the balance of January and into the first quarter of the year.

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Broad-based Upside Signalled Across Crypto Markets

In various reports over the past 1-2 weeks, we have highlighted the growing bullish technical signals coming from the cryptocurrency markets, with multiple stablecoins, altcoins meme coins and cryptocurrencies posting strong statements on the charts. As we have covered, Dogecoin, Polkadot, Cardano and EOS have all indicated a far more positive outlook for the balance of January and also now likely well into Q1 2023. Having also covered the explosions higher in the market leaders, Bitcoin and Ethereum, here we revisit these crypto charts, which have strengthened even more since Friday.

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YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY

Bitcoin Bull Signals and Bull Threats

On 13 January, we highlighted the bullish reaction by Bitcoin to the release of the US CPI data.

Source: IG.com

The subsequent consolidation last week after a BTC bull gap at 20248-19896 on the weekend of 14-15 January, and then the explosion higher last Friday and gap up over this recent weekend (21-23 January gap already closed) has highlighted a still more bullish outlook for BTC. The push above swing highs from November and September at 21425 and 22778, respectively highlights stronger upside prospects into late January and Q1. Plus, traders should watch out for a possible bullish crossover of the 50- and 100-day Moving Averages (MAs).

Upside Prospects: We see BTC/USD risk next to 25204 and targets at 31738/32370. Through here into Q1 could even see risk as high as 40014.

Downside Risks: Back below 20867 for BTC would open risk quickly down to the bull gap at 20248-19896. We would look for this support to hold, but surrender here would open the door down t 18

Ethereum Bull Theme and Bullish Targets  

We highlighted the bullish technical signals from Ethereum back on 16 January in the wake of the US CPI data and the subsequent gap higher (13-14 January gap at 1501-1461).

Source: IG.com

The strong start to 2023 has continued into late January with the rally from late 2022 support at 1151 through the December peak at 1351 (for a Dow Theory bullish reversal) and to reverse the bear trend lien from August 2022 now being reinforced by the prod on Saturday just above the November swing high at 1676 to 1695.

Bull Forecasts: The risk remains still higher through 1695 for September, August and May targets at 1789, 2031 and 2161 into Q1. The overshoot threat is maybe even as high as targets at 3035/3180.

Support Threat: Only back below the 13-14 January bull gap at 1501-1461 (which we would look to hold) opens risk back closer to 1321, even then maybe for 1235.


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Steve has 29 years of financial market experience including 3 years at Credit Suisse and 15 years at Merril Lynch. Steve is the Academic Dean for The London School of Wealth Management and has won many awards from Technical Analyst Magazine.