Analysts at the Kraken cryptocurrency exchange have unveiled the next release of their monthly VIP report on the state of the market.
According to their observations, the current month has been one of the most successful for Bitcoin and Ethereum in history, however, the first cryptocurrency may still lose $ 10,000 – 15,000 in value before continuing to rise.
“BTC ended March with a 30% increase, thus adding more than 10% for six months in a row. Since April was the second best month for cryptocurrency on average, investors can expect BTC to rise again and form its longest winning streak since its invention, ”the report said.
On average, the price of bitcoin in April rose by 51%, which compared to the levels of the beginning of the month gives a target of about $ 90,000. Ether, according to Kraken’s observations, is between two important levels of $ 1,462 and $ 2,695, and breaking the latter will be a “major test.”
Based on the logarithmic regression curves to detect a potential peak in ETH during the current cycle, analysts conclude that if history repeats, ETH could rise another 700% from the levels of the end of March to a high of $ 15 238. In such a scenario, the capitalization of the second largest cryptocurrency should rise up to $ 1.7 trillion.
While analysts at Kraken are generally bullish, they admit that prices may still rebound. So, support for the bitcoin bull market is formed from 20-week exponential and simple moving averages. In previous cycles, both of these lines were tested before resuming growth.
The good news is that both lines have been rising since the beginning of the year, as a result of which the scope of the potential correction has decreased from 29-36% to 17-25%. In other words, analysts at Kraken admit the possibility of reducing the price of bitcoin to $ 45,000.
In the case of ETH, the fall could end at three-digit levels if the bears manage to push through the aforementioned $ 1,462 support. Thus, Kraken analysts admit that the price of the cryptocurrency could fall by more than 50%.