Another week, another set of highs for bitcoin! Just how high can it go, and will its peers litecoin and ethereum be able to catch up anytime soon?
Bitcoin has been able to bust through all the Fib extension levels we were checkin’ out last week as bulls are hella charging these days!
As it turns out, market watchers are looking forward to the launch of bitcoin futures on the CBOE like Christmas Day, and this is slated to happen on December 10. Rival CME is said to have its own launch by December 18, and Nasdaq is rumored to follow suit by early next year.
This basically means that retail investors could have better access to the cryptocurrency soon, which could bring an influx of funds, trading activity, and higher volumes. If the addition of 100,000 Coinbase accounts a few days back is any indication, bitcoin is widely expected to see another surge as a result.
Back to the charts, price has also broken past a rising wedge resistance visible on the 1-hour time frame even while stochastic has been indicating overbought conditions for quite some time. Note that the chart pattern spans $9,050 to around $11,750 so the resulting climb could be of the same height.
Ethereum bulls, on the other hand, seem to be running out of energy as price failed in its last couple of attempts to break past the $480 area. A double top pattern has formed, with the neckline located near the $400 mark.
Stochastic is on the move down to indicate that sellers are in control of the game, but the 100 SMA is above the longer-term 200 SMA so the path of least resistance is still to the upside. There’s also a nearby ascending trend line that coincides with the 200 SMA dynamic inflection point to serve as a floor.
But if bulls can’t keep ethereum afloat, maybe kitties will?
Litecoin also seems to be encountering roadblocks on the upside and is retreating to an area of interest around $96 while stochastic makes its way down.
The oscillator is nearing oversold levels to show exhaustion among bears and a potential return in bullish pressure. The area of interest is right around the middle of a new ascending channel that’s forming after litecoin previously surged past the top of a smaller one and completed a retest.
The 100 SMA is also above the longer-term 200 SMA for this one, which signals that the uptrend is more likely to resume than to reverse. However, a larger pullback to the channel support closer to $82 might take place while litecoin gives up some of its market share to bitcoin.