Earlier this week, there was a massive gain in prices across all pairs we report on. Were you able to ride on the waves?
BITCOIN
Earlier this week, Bitcoin maintained bullish dominance with a remarkable 11% price gain taking the price of bitcoin to a new high above $8500 in the past two years. After this followed a significant drop to its current price above $7200 reaching the new high. Currently, there is an increased market cap of $126.74B against $106.5B with more than $10B being traded every 24 hours while supply maintained above 17.6m based on data from coincap. Again These fundamentals show a clear demand dominance with the liquidity to mop up the short supply marking a strong demand. Once again we are still on bullish dominance and we should disregard any analysis that says otherwise and my candid advice is should make your entry on the retracement to the supply zone on a lower time frame say a one-hour time frame but if you have already bought please don’t sell your bitcoin now.
From the technical analysis, we observed that the massive rise in bitcoin price eliminated the supply zone at $6638 with its breakout, hence we expect a retest or a pullback to this supply zone (which is serving as the resistance turned support), and this is what is currently happening now with bitcoin.
ETHEREUM
Ethereum has maintained its bullish momentum in line with Bitcoin as it marked a new high this year.
The price action of Ethereum and the bullish run came with a lot of surprises as the coin marks a tremendous breakout from the higher time frame supply zone(resistance) at $190. Ethereum gained a massive 26% increase taking the price to an all-time high of $285 and its currently trading at $234, with an increased market cap of $24.7B and an increased volume of about $5.67B being traded per day, this shows high liquidity and clear bullish presence. Hence, bullish sentiment has set in and we expect more buyers to come in and drive the price higher.
From a Technical analysis standpoint, the price action of ethereum had a powerful from the resistance(supply) zone at $198 and we expect a pullback/ retest at this point and the price to trade higher as more buyers flow into the market as indicated by the fundamentals.
XRP
The XRP chart analysis shows that the bulls have taken charge, eliminating close supply zones (resistance levels) on the higher time frame. This proves that there is a clear demand in control and bullish sentiment. Fundamental analysis shows an increase in market cap of the coin with a 1000% increase in the volumes being traded every 24 hours. The current price of the coin is $0.378 after reaching a massive high of $0.51
The market sentiment of XRP is currently bullish and the price action shows a retest to the supply zone as observed on the charts. Hence, a buy or hold position is advised as the bullish rally is not over yet.
LITECOIN
Litecoin joined the bullish run hitting an all-time high of $108 after days of sluggish price movement.
After last week’s price analysis we reported that Litecoin has regained its bullish trend after days of pullback and retesting the $73 demand zone. The daily time frame chart reflects a clearly defined strong uptrend as the price rallied off our dynamic demand zone at $69. Hence, as the price action is showing a pullback, we expect a retest at the present demand zone.
Disclaimer: This article is provided for information purposes only without regard to any particular user’s investment objectives, financial situation, or means, and Quidax is not soliciting any action based upon it. Before making any decision or taking any action regarding your finances, you should consult a qualified Financial Adviser.
