Bitcoin Stalls at Resistance
Ethereum’s transition to ETH 2.0 is drawing closer and is expected to occur in 2022. Dubbed The Merge, the transition to Proof of Stake will bring multiple improvements to the network but until it can be fully implemented, Ethereum needs users to get involved as testers.
Ethereum developer Marius Van Der Wijden took to Twitter to ask users to join ETH 2.0’s development: “Testing is the best way to contribute to Ethereum. We are starting a new program to get the community involved in testing the merge.” He continued by saying “If you want to do your part in getting Ethereum to Proof of Stake as soon as possible and save the environment, DM me.”
The community was quick to answer and in 4 days, at least 300 testers expressed their interest to join. The move to ETH 2.0 is widely expected to lower the gas fees and to cut the energy consumption of the network. Also, once Ethereum moves to Proof of Stake, Bitcoin will be the only main network that uses the Proof of Work protocol.
And speaking of Bitcoin, the flagship cryptocurrency is still struggling to crawl above $59,000, a level that has become extremely important for short-term movement. Considering the resistance at $59K and the solid support represented by the long-term bullish trend line, a breakout is very probable.
Chart Analysis – BTC/USD
During the last week, Bitcoin showed three picture-perfect touches of $59,000 resistance and was rejected lower, which makes it clear that the bulls are lacking the necessary strength for the time being.
Currently trading at $56,500, Bitcoin is on a significant decline since November 10 when it reached the latest ATH. It dropped to a low of $53,308 before showing rejection and bullish impulse, but this was not enough to take the pair above key resistance at $59,000.
Price is now stuck in a range between $59,000 and $53,000 but also between two major trend lines, which sets the stage for a breakout. As we can see the last few Daily candles are small, with long wicks, indicating indecision and lack of volatility, which could be a sign that price may simply move sideways, breaking one of the trend lines without any momentum. If this happens, the move will not be considered a breakout. On the other hand, if price moves out of its confinement with authority, we can expect it to continue to move in that direction.