Bitcoin and Ethereum Analysis: Current Market Outlook

Bitcoin (BTC) Analysis:

Following a surprising sell-off, Bitcoin, the leader of the cryptocurrency realm, has made a resurgence, crossing the $37,700 mark, accompanied by whirlwind volatility. Altcoins, although yet to reclaim their pre-drop resistance levels, show potential for double-digit rallies if daily closing remains stable. What does this mean for the current BTC and ETH landscape?

As of now, Bitcoin, having found support at $37,600, is on an upward trajectory. Recent inflation data has been notably positive, and today's PPI (Producer Price Index) data, a leading indicator for CPI (Consumer Price Index), revealed a monthly decrease of -0.5%. This suggests a continued decline in inflation.

On November 13th and 14th, Bitcoin faced profit-taking, prompting hasty actions from panicked investors. However, after a significant sell-off, the price has rebounded to its initial position. Data from Glassnode indicates that addresses holding over 1,000 BTC have been engaged in rapid selling lately.

Regarding the price action, the robust bounce from the support line underscores the attraction of lower levels for buyers. Bulls will attempt to push the BTC/USDT pair past the resistance line, although formidable selling pressure from bears could pose a challenge. A decisive move above $38,000, with a successful close, is crucial.

In an alternative scenario, the current target rests at $34,400, with support levels in the

$32,400-$31,800 range.

Ethereum (ETH) Analysis:

ETH initially breached the $2,000 mark with ETF support, but the price volatility in BTC's domain led to a retreat from the formidable resistance zone. Ethereum must now regain the $2,000 level and conquer the resistance territory spanning $2,137 to $2,200. Achieving this feat would unlock the path to a new all-time high (ATH).

Furthermore, Ethereum has experienced a return to negative inflation. The chart below reflects data from the last 30 days, indicating a rise in network transactions and reasonable levels of ETH being burned.