Gareth Soloway, Chief Market Strategist at VerifiedInvesting.com, is firmly convinced that the cryptocurrency market is poised for a short-term bull run. He believes current market charts reveal a crucial signal that most investors are overlooking: Bitcoin is showing green gains despite a downturn in the S&P 500. Soloway points to this divergence as the most significant signal in the current market.
Bitcoin: A Stone's Throw from $80,000 to $85,000
With Bitcoin's price continuing its upward trajectory, Soloway sees its price structure as exceptionally clear. He notes a key resistance level between the current price and the target zone at $74,000. "We've broken out," he stated, "we've hit highs, pulled back to support, and are now testing the next key point. Once we break $74,000, the upside is directly to $80,000 to $85,000."
This bullish thesis is underpinned by classic chart patterns. A bullish reversal candle formed several weeks ago has not seen any closing price dip below its low since. Soloway explains this "inside bar" formation as a typical precursor to a breakout rather than a breakdown.
Bitcoin's performance relative to other assets further bolsters this conviction. Since February 25th, the S&P 500 has fallen 4.45%, while Bitcoin has gained 12% in the same period. Bitcoin has also outperformed gold and silver. Soloway views this relative strength as "breadcrumbs" pointing towards further upside.
"I'm not a mid-term bull on Bitcoin, I'm a short-term bull. Short-term meaning days to weeks." He anticipates that after this period, a broader stock market decline could eventually drag Bitcoin below the lows it hit around $60,000 six weeks ago.
Ethereum: A Break Above $2,150 Opens the Door to $2,600
Ethereum has not yet broken out, but Soloway believes it is "knocking" on the door of a breakout. The key price level is $2,150. Ethereum has broken above this level twice and is making another run at it. "If we can get a daily close above $2,150 and confirm it, then the price is going to run significantly," he predicts, "The target will be $2,600."
Its pattern is similar to Bitcoin's: a reversal bottom is forming, resistance is being tested repeatedly, and this structure tends to resolve itself with a rapid move higher rather than prolonged consolidation.
Ripple (XRP): Bullish Pattern Points to $1.80 Target
Currently trading around $1.41, Ripple is forming a clear short-term bullish structure, according to Soloway. He has set an upside target of approximately $1.80, which represents a significant overhead resistance area formed by a prior support-turned-resistance level and converging trendlines. "This area and this trendline are coming together to form major resistance," he stated. A clean break through this area would be a significant technical achievement for XRP.