Bitcoin has left its peers, litecoin and ethereum, eating dust and is closing in on the $7000 mark. Can it go any higher from here?
BTC/USD surged past the ceiling around $6000 and is within striking distance of the $7000 mark. Bulls could be ready to lock in some gains at this psychological level, so a bounce could happen from here.
Besides, stochastic is already indicating overbought conditions, which means that buyers could use a break. In that case, a correction to the rising trend line support could be in the cards before the rally resumes.
This support zone lines up with the area of interest at $6000 that might hold as a floor. The 100 SMA is above the longer-term 200 SMA after all, so the path of least resistance is still to the upside.
Reports that CME is gearing up to launch bitcoin futures before the year ends has been considered the main catalyst for the latest rally.
Ethereum could be in for more losses as price appears to have formed a sketchy head and shoulders pattern on its 4-hour time frame.
It has yet to break below the neckline support around $280 before confirming the potential downtrend. The chart pattern is around $70 tall so the resulting selloff could be of the same height, taking it down to the $200 lows next.
The 100 SMA is also starting to cross below the longer-term 200 SMA to signal a pickup in selling pressure. However, stochastic looks ready to pull up from the oversold region, so bulls still have a fighting chance.
Litecoin has completed its downside break of the triangle support zones highlighted previously and has staged a steep drop to $49.53.Price seems to be hesitating from here while stochastic heads back up to reflect a return in buying momentum. A correction could be underway and applying the Fib tool shows that the 61.8% level lines up with the falling trend line connecting the highs since the last week of October.
This area of interest also coincides with the moving averages’ dynamic inflection points. The 100 SMA is above the 200 SMA for now, though, so bulls might still have some energy left in ’em to pull litecoin up from its dive.