Market Roundup – Bull Run

After what felt like an interminable consolidation period for us all, bulls finally pushed bears out of the resistance/gap zone last night, triggering the start of a short squeeze – a rally in which short sellers’ stoplosses are triggered, causing a very aggressive move, something we’ve been thinking could happen for a while given the record short interest. The result was a sight to behold.

BTCUSD 5
Chart 1: Bitcoin 5-minute

Let’s take a look at the current situation:

Bitcoin

BTCUSD daily chart
Chart 2: Bitcoin daily

This move finally fully confirms the recent bottom. The overnight rally was halted by resistance from the 50 and 100 day moving averages (green arrow) which coincided around 6930, and are now the next hurdles.

It’s possible we’ll see a retrace to retest the top of the recently departed congestion zone from above, but given the momentum we saw overnight I wouldn’t be surprised to see bulls push straight through, perhaps after some consolidation at the moving averages.

Short interest remains high (see the indicator at the top of the chart showing the number of short contracts on Bitfinex), so I suspect that if they manage to probe $7000, some further short stoplosses will be triggered and we’ll likely see another impulse move higher.

Our initial target for this move is the zone $7650-$7900, which is the area between the former downtrend and the 200 day moving average (red).

BTCUSD hourly chart
Chart 3: Bitcoin hourly

No additional comments here, just showing the move in context of the resistance bands we’ve been battling and the moving averages which put the brakes on the rally last night.

Ethereum

ETHUSD daily chart
Chart 4: Ethereum daily

ETH is still struggling to get back above resistance (green) and has yet to tackle the gap in yellow, so I’m expecting it to underperform for a while. Eventually though if all goes to plan with BTC, our first target will be the 50 day moving average at 380, with a second target at $450-460.

Ripple

XRPUSD daily chart
Chart 5: Ripple daily

XRP is clear of resistance and the downtrend that’s been holding it underwater. On a further rally from BTC I’m expecting it to move swiftly to the 50 day moving average around $0.40, and then all being well on to our $0.45 target. There remains very little resistance in this area, so this remains my favourite chart of the moment.

Litecoin

LTCUSD daily chart
Chart 6: Litecoin daily

Litecoin’s looking great for a run straight up to the 50 day moving average around $70 and then on to our $74 target, BTC permitting.

Bitcoin Cash

BCHUSD daily chart
Chart 7: Bitcoin cash daily

Like ETH, BCH still has a gap to overcome (yellow). If it manages this (which another impulse move higher from BTC would probably assist with), first target is $600, with the 50 day moving average at around $669 being next.


DISCLAIMER

BitcoinBro has no position or opinion on the price of Bitcoin or any other cryptocurrency and this article should not be construed as analysis of or advice regarding the current or future market price of Bitcoin or any other cryptocurrency. No analysis of the price movements of BTC or any other cryptocurrency or any other asset provided by BitcoinBro should be construed as an invitation or inducement to buy, sell or otherwise to trade BTC or any other cryptocurrency.

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