A Broad Rebound In Cryptocurrency Is Underway
A broad rebound in the cryptocurrency market is underway. Over the weekend the price of major coins like Bitcoin, Ethereum and Litecoin rose to multi-week highs and fired bullish signals. The move may have been sparked by a rush to safe-haven assets linked to last week’s killing of Iranian General Soleimani. Soleimani, leader of Iraq’s international brigades of militant militia, was killed while in Iraq sparking a global outcry and the possibility of widespread conflict within the region. While this situation has little bearing on cryptocurrency in the broad sense it may keep these coins moving higher in the near term. Longer term, the Bitcoin halvening is still coming up and will undoubtedly keep the world’s reserve cryptocurrency edging higher.
Bitcoin, The Forecast For The Week
Bitcoin prices have risen more than 5% over the past four trading days. More importantly, the price action has regained the upper side of the short-term 30-day EMA and confirm a triple-bottom that has been in play for the past month. The triple bottom is not a pattern I put a lot of faith in, it’s relatively new to the technical analysis lexicon, but the break above the moving average is significant. In light of the 2019 down trend in BTC prices such a move may only be setting up the next selling opportunity, the caveat is that until the sell-signal materializes outlook for prices is bullish.
There is resistance just above today’s trading level, near the $7,600 line, but it is likely to be broken and soon. The indicators are both bullish, stochastic and MACD, and that suggests underlying strength with the market if not a guarantee of rising prices. The stochastic is well below the upper signal line showing conditions neither overbought nor oversold so there is room for price action to run. A move above $7,600 (with a close) would be bullish and the signal to buy. At that point, the next target for resistance is the $8,000 level and then $9,000.
Ethereum, It Looks Bullish Too
Ethereum is also looking bullish on Monday morning. Ethereum has been one of the hardest hit crypto’s this year, largely due to the lack of progress with updating the system, which makes it a prime target for major rebound. Today’s action set a three week high, broke above the 30-day EMA, broke above a key resistance target, and is supported by the indicators so upward price movement is more likely than not. The indicators are especially telling, stochastic and MACD are providing a strong buy-signal, and compounded by convergence in the MACD. Convergence in the MACD is one of the strongest signals I know, it shows a strength of conviction within the market that puts the bulls firmly in control. The risk is that resistance at the $140 level may hold prices back, once that is broken (when it is broken) I will be a buyer of this coin.
Litecoin, Almost Time To Buy
Litecoin is in similar position to BTC and ETH. The world’s first lightweight version of Bitcoin is sitting at a multi-week high following the break of its moving average. The indicators are bullish, pointing higher, and showing convergence with price action. The coin is still facing some resistance at the $45 level but, once that is broken, a move up to the $50 and $60 level is very likely.