By the time of publishing this post, the biggest cryptocurrency was trading at around $57,000, only $7,700 below its April high. A recent surge in digital currencies like Bitcoin and second-ranked Ethereum contrasts with the struggles of assets such as equities, bonds, and gold at a period of global market anxiety.

According to Vijay Ayyar, Asia Pacific head of crypto exchange Luno in Singapore, record highs for Bitcoin are attainable, at around  $80,000 to $85,000 based on chart trends. That means $50,000 will serve as an approximate floor for the virtual money in the immediate future, he says.

The breakdown below highlights the technical and seasonal patterns, as well as options positioning, to provide insight into the future of Bitcoin and Ethereum.

 

Breakout

The rise of Bitcoin has triggered an inverted head and shoulders chart pattern. The so-called measured target for Bitcoin determined from this pattern is around $79,000, which would surpass the all-time high of over $65,000 set in April.

 

Momentum

A look at the price momentum of Bitcoin and Ether using the famous Ichimoku cloud technique indicates a signal that has previously predicted future rises. According to the findings, short-term momentum has surpassed the longer-term trend. Both tokens have been considerably higher a year following each such crossing during the last five years.

 
Seasonality

In 2018, 2019, and last year, Bitcoin outpaced Ether in October, and the trend is continuing this month. In October, Bitcoin was roughly 13 percentage points ahead of Ether on average over the previous three years.

 

Options

Positioning in the options market implies that wagers on the Bitcoin rally are continuing. According to statistics from options exchange Deribit, open positions for the $80,000 strike call for the December 2021 expiry considerably outweigh those for $40,000.

 

The second-ranked cryptocurrency Ethereum is trading at $3,430.63, down 4.33% from yesterday. The worldwide crypto market cap is now $2.28 trillion, a 6.05 percent rise from the previous day.