Bitcoin, Etherium and Litecoin are making solid gains ahead of the end of 2020, while XRP continues to fall apart.
Will the opportunities continue to remain diverse in the cryptocurrency space?
But before we look forward, were a quick look back at the ranking of bitcoin and other altcoins for the past seven days:
Bitcoin bulls remain on fire as we close out the new year, breaking above last week’s consolidation pattern between $22,400 – $24,100.
And it looks like the trend can’t be stopped with another fresh breakout out of yesterday’s short-term symmetrical triangle, with odds in favor of BTC hitting that $30,000 major psychological handle by the New Year.
If we do see a sell off and given its average daily ATR of around $1,500, a move back to the $27,500 area of previous consolidation is not out of the realm of possibilities within a session or two.
A deeper pull back would bring the gold standard crypto to the rising moving averages and rising trendline, which have been a solid buying point for 4-hour chart players over the last two weeks. Watch out there for bullish reversal patterns to play the solid trend higher.
Ethereum bulls are also crushing it this week, breaking above the $650 swing highs formed last week after the moving averages drew in buyers once again like clock work.
But the move higher is starting to look at bit overdone as signaled by the stochastic indicator, making the slowdown around $750 the likely short-term top for now.
If you’re a bull on ETH, it makes sense to wait for a pullback, and given the daily ATR of around $46, a move back to $700 is not out of the question today or tomorrow.
If the pullback runs deeper to the moving averages and rising ‘lows’ pattern, well given the consistency of that pattern drawing in buyers, you’ve got a fresh opportunity to play the uptrend with a high probability setup and great potential return-on-risk.
Litecoin made solid gains along with BTC and ETC, most of which though was not too long after our last look as it broke a simple consolidation pattern last Wednesday.
We are seeing consolidation once again, and with the trends definitely in favor of the bulls, the high probability long setup seems to be an upside break of the falling ‘highs’ marked on the chart above.
And if the pair does fall for some reason (maybe end of year profit taking?) then watch the rising moving averages for support to potentially form. They’ve been a reliable jump off point for the bulls this month, so why not one more time to keep the party going?
XRP is down in the dumps once again, falling another 20% – 30% since last week! As we mentioned in our analysis last Wednesday, any kind of bounce is likely to draw in more sellers given the situation Ripple is in with the U.S. government.
We did see buying from 0.22 to 0.25, and that’s were sellers quickly piled back on to eventually take XRP/USD down to lows just above 0.17 this week, likely a reaction to news of Coinbase halting trade of XRP this week.
It’s probably still not time to go bullish yet, but the odds are growing very quickly that this 73% drop from its November peak may be the bottom. And with prices this low, traders may start to nibble given the potential return-on-risk if Ripple can clear up its legal issues.
If this is your first time checking out crypto charts, keep in mind that there is a considerable amount of risk in trading cryptocurrencies due to their inherent volatility and sensitivity to headlines. Be careful out there!