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Bitcoin,  Ethereum,  Markets Report

Markets Report: Bitcoin bull run hinges on $35K as Ether hits new all-time high

A slow upwards move for BTC/USD contrasts with an easy ride to record highs for Ether on Wednesday

Bitcoin showed signs of life on February 3 as largest altcoin Ether made good on its bull run and beat all-time highs.

Data from CoinMarketCap and TradingView showed BTC/USD rising more than 5% on Wednesday to reach $36,820 before a slight correction. 

5% gains as MicroStrategy buys $10 million of BTC

While modest compared to previous volatility, Bitcoin’s uptick buoyed sentiment among traders who had waited patiently for the market to decide short-term direction. 

Previously, BTC/USD had spent two weeks in consolidation with only brief circumstantial moves bucking the overall trend. With $35,000 support now seeming in place, expectations focused on a retest of levels near all-time highs of $42,000.

“If we do hold above $35,000, I do not assume that $38,000 is going to be heavy resistance and we continue towards that $40,500 critical resistance level and we can continue grinding,” Michaël van de Poppe summarized in his latest daily YouTube update

Reiterating his existing theory about the short-term potential of the market, van de Poppe added that a failure to hold $35,000 would result in a test of $32,000, with a likely further dip to $30,000 support.

“Interestingly, Bitcoin is crawling up while the dollar is showing strength,” he noted, eyeing a reversal of a tradition which normally sees BTC/USD suppressed during growth periods in the U.S. dollar currency index (DXY). 

BTC/USD reaches multi-day highs and decides on $35,000. Source: TradingView

The price action further coincided with fresh buying activity from institutions, with MicroStrategy adding another 295 BTC to its treasury on Tuesday. Scott Minerd, chief investment officer of asset manager Guggenheim, revised his longer-term Bitcoin price target up to $600,000.

Examining the flipside of the investment—institutions selling their coins for profit at some point in the future—trader Scott Melker highlighted MicroStrategy CEO Michael Saylor as a potential lone wolf in staying a lifelong hodler.

“And this locked Bitcoin that’s held on the balance sheets of companies and in the hands of retail that aren’t sold will determine the baseline price of Bitcoin after it comes down from its cycle all-time high,” he wrote in a post this week.

“So as cool as Michael Saylor is for buying a lot of Bitcoin and publicly announcing he will never sell, he is probably a hero that most buyers big or small will never relate to.”

Ether peaks prior to futures launch

Beyond Bitcoin, it was all about Ether on the day as ETH/USD rushed through its previous record high to hit $1,573 on 20% weekly gains.

ETH/USD sets and holds a new record. Source: TradingView

Coming in the last few days before the start of ETH futures by CME Group, investment appetite was clear throughout the week as Ether prepared to join Bitcoin on the world derivatives stage.

Fellow asset manager Grayscale resumed buying for its Ethereum Trust on Tuesday, adding 24,796 ETH after a break which began in early December.

Van de Poppe forecast the largest altcoin hitting $10,000 during its current market cycle.

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Anthony Bevan is a journalist focusing on disruptive finance and cryptocurrency, along with the changing face of the market as Bitcoin gains mainstream adoption. Journalists covering cryptocurrency for Modern Consensus May hold positions in some of the currencies they write about.