Analysis: Bitcoin rally overheats, Ethereum passes $500, Ripple flies!
The crypto market is still a talking point, the Bitcoin rally doesn’t want to stop yet. Meanwhile, the altcoins are waking up.
Bitcoin is getting closer to a new all-time high, thanks to an amazing 7-week continuous bull rally, which makes us wonder if the bulls are tired yet.
As of this writing, Bitcoin is trading at $18,630, the Bitcoin Era platform accumulating gains of 13.04% in the last 7 days, and losses of 2.54% in the last 24 hours.
With BTC’s momentum so widespread, investors in the crypto ecosystem have already begun to look to other crypto currencies, looking for opportunities where there is more room for profit.
As a result, today the Ethereum is trading at $527.92, with weekly gains of 15.66% and daily gains of 3.01%.
But the crypto currency which is standing out most amongst the larger ones is undoubtedly Ripple, capable of accumulating a weekly gain of 60.29%, and a 12.36% upward jump in the last 24 hours alone.
In order to forecast the future of these cryptom currencies, we have made the following analysis.
Technical analysis of the Bitcoin rally
From the BTC/USD weekly chart, we see a fairly widespread upward momentum, and although it is not yet over, it is quite likely that we will soon see a reversal.
The 8-week EMA and 18-week SMA moving averages are crossed upwards, following the medium-term trend.
It’s possible that these averages will function as dynamic supports when Bitcoin decides to go back a little.
Most likely, before this happens, a new all-time high will be reached. $20,000 for the coming week?
Bitcoin Rally Technical Analysis. Source: TradingView.technical analysis of the Bitcoin rally. Source: TradingView.
The close relationship between the shortage of Bitcoin and its price
Bitcoin makes small retreats in search of demand, but there is less and less upward force
What appears to be a fairly widespread momentum on the weekly chart, appears to be a succession of highs with less and less force on the daily chart, creating a downward divergence between the candlestick and the RSI.
However, there is still no change in the short term trend, and it seems that the small downward movements that Bitcoin has been making will be all that is needed to search for a new historical high.
For now, the odds are still on the upside, but a correction is likely to begin soon. Don’t think that it will be a long drop, it will only be a small healthy break before it continues to climb.
Daily Bitcoin price chart. Source: TradingView. Daily Bitcoin price chart. Source: TradingView: TradingView.
Although I am talking about the momentum soon running out, this is only when we talk about the short term.
While the weekly chart shows fairly widespread momentum, on the monthly chart all we have witnessed is just the beginning of what could be a great long term momentum.
Markets are fractals so we should always correlate what is happening over different time periods.
Just because we see a volatile rise does not mean that there is no more room for profit, just the opposite, a drastic fall does not necessarily indicate the death of an asset.
From Google Trends‘ point of view, how is Bitcoin?
Ethereum sets a new annual high
After several weeks of gradually resuming the upward trend over the medium term, Ethereum has managed to set a new annual high.
We now have a developing momentum with the ground cleared to $620.
Not to mention the long term trend that is being resumed, could calmly take Ethereum to a new historical high.