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Bitcoin(CRYPTO: BTC) could extend its explosive rally toward $90,000 as traders see a shift from low-volatility consolidation to a momentum-driven market.
Why Bitcoin’s Breakout Could Have Legs
Speaking on the Aug. 22 episode of Technical Roundup, prominent trader DonAlt said Bitcoin’s breakout was preceded by repeated tests of weekly resistance after bouncing from monthly support.
More importantly, bearish catalysts repeatedly failed to push Bitcoin meaningfully lower, which he viewed as evidence of seller exhaustion.
Analyst Cred added that while the initial breakout was heavily influenced by short liquidations, Bitcoin continued climbing even as liquidations slowed.
He interpreted that as evidence that fresh buying demand had replaced forced short covering as the rally’s primary driver.
That distinction matters because rallies fueled exclusively by liquidations can quickly reverse once shorts are cleared. Continued spot demand, on the other hand, could support a more durable move.
DonAlt sees Bitcoin holding a bullish structure above $72,000 to $73,000, while a drop below $70,000 could weaken momentum.
While $65,000 to $66,000 would threaten the breakout, he targets $89,000 to $94,000 on the upside before an orderly correction.
Why Ethereum Could Lead BTC Higher?
DonAlt is also increasingly bullish on Ethereum(CRYPTO: ETH), which he believes is displaying stronger relative price action than Bitcoin.
Ethereum has bounced from its long-term range support around $1,600 to $1,700 and pushed through major resistance around $1,950 to $2,250.
A weekly close above roughly $2,300 would strengthen the breakout
“ETH is realistically leading,” DonAlt said, noting that Ethereum has already broken resistance that Bitcoin is still confronting.
He added that historically, Ethereum breaking resistance ahead of Bitcoin has sometimes increased the probability of Bitcoin subsequently following through.
DonAlt’s primary ETH target is therefore around $4,000, where he plans to reassess whether it can mount a sustainable breakout toward new highs.
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