Cryptocurrency Update: Bulls Still Control, Ripple Reverses
Technical Picture Brightens, Signals Abound
It was just a week ago I wrote about a possible reversal in the cryptocurrency market. Some big moves in the major coins had them poised to complete some potent continuation signals and those signals paid off. Litecoin, Bitcoin, Ethereum, and even Ripple (XRP whatever you want to call it) all made substantial gains in the last week. Looking back at the charts, flipping from one coin to the next, I see more signals forming and they all look bullish.
I know I’ve said it before but this could be the beginning of a big rally in cryptocurrency. The difference now is that I see signals, powerful bullish signals, firing across the market, not just in one place. It’s a virtual onslaught of bullish behavior and I think it could easily sweep the bears away. If nothing else, smart bears will stand aside and let the moves play out because it’s the right thing to do. With nothing to oppose them, the bulls could get quite high.
Litecoin Moved Higher Following A Rising Three Methods
Last week Litecoin was edging higher and on the brink of forming a Rising Three Methods. The Rising Three Methods is a clear continuation pattern and confirmed itself even while I was writing the post. Since then the coin has moved even higher and now offering another opportunity for entry. The coin is pulling back from the fresh high but well above support. Support is at the $47 level and likely strong. For one, convergences with the MACD suggest underlying strength and a high-degree of market conviction. For another, $47 is consistent with the baseline/neckline of a bullish reversal that’s been brewing for several weeks. A retest of $52 is the least Litecoin can be expected to do, once that level is broken a move up to the $56-$54 region.
Bitcoin, Waving A Bull Flag
Bitcoin is also in the process of reversing and not just in a small way. The world’s reserve cryptocurrency is moving up from a triple-bottom (head & shoulders) reversal and waving a bull flag. This is the first continuation in a new rally so caution is warranted, regardless, with a flag-pole of $1400 traders can expect a move of 20% or so once the continuation begins. The indicators are bullish and set to fire strong buy signals if price action moves higher. A close above $8400 is my trigger point, once that happens a move up to the $10,000+ range is highly probable.
XRP, It’s Reversing Too
XRP, Ripple, whatever you want to call it, it is in reversal too. The coin blasted up through it recently broken support and confirms someone still cares about it. Support at the $0.2050 level appears to be strong and is confirmed by the short-term EMA. A move up from this level would be bullish and the indicators concur. Both MACD and stochastic are consistent with rising prices so I would expect to see resistance tested at the $0.2250 level. If XRP can close above that a move up to $0.28 or $0.30 is possible.
