The crypto market has bounced back from its mid-June low. Bitcoin (BTC) has reclaimed the US$22,500 resistance level while Ethereum (ETH) broke out of the trading range of between US$1,000 to US$1,280 and has been showing signs of strength upon the announcement of the ETH 2.0 Merge due mid-September.
This report analyzes the formation of BTC and ETH bottoms with regard to Wyckoff’s methodology of accumulation scheme. The scheme explains that the trend reversed after being tested multiple times by market demand and supply.
This report also suggests that the expectation of the Fed’s adjustment of the interest rates increment from 100bp to 75bp contributed to this reversal. In addition, the announcement of the ETH 2.0 Merge in late September added strength to ETH’s upward price movement, causing ETH to trend higher.
Lastly, this article highlights various valuable protocols which survived the last bear market and suggests that these protocols will be likely to recover and trend higher with ETH should BTC shows signs of strength in the near future.
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