Bitcoin's Breakout Has Legs, Ethereum Leads the Charge

Bitcoin's breakout above $72,000 to $73,000 is being seen as a bullish sign by prominent trader DonAlt. He believes that the cryptocurrency could extend its rally toward $90,000 or even higher.

The key factor in Bitcoin's continued climb is the exhaustion of seller demand. As traders have repeatedly tested weekly resistance after bouncing from monthly support, bearish catalysts have failed to push the price meaningfully lower.

DonAlt also pointed out that while short liquidations initially drove the initial breakout, the rally has continued even as liquidations slowed down. This suggests that fresh buying demand has replaced forced short covering as the primary driver of the rally.

Ethereum is also showing strong relative price action and has broken resistance ahead of Bitcoin. DonAlt sees Ethereum's target at around $4,000, with a weekly close above $2,300 strengthening its breakout.