Crypto Market Looks Ready
I don't want to be that guy and jinx the rally, but the bus is looking like it is about to leave the station.
Bitcoin is really looking ready to go in my humble opinion. The daily chart resistance lines that I laid out a couple months back have served as such pretty effectively… until now. $46k has been taken out. It now needs to flip to a level of support on any potential pullback. I do think one might be likely. But if that happens, it’s going to be temporary and probably quick.
Weekly Chart
One of my biggest focuses on the Bitcoin chart going back 12-24 months has been the coin’s relationship to its 8 week and 20 week moving averages.
That setup looks awesome, frankly. After struggling to get over the 8 week MA for months, not only did BTC finally take it out, but now it’s also above the 20 week and a bullish cross appears imminent. I wouldn’t discount a pullback to back-test $46k, but I’d be very surprised if Bitcoin gives that level back and falls below.
ETH Pullback Before Liftoff?
Ethereum has really crushed it the last few days as well. ETH’s weekly chart is similar to BTC’s. Rather than 8 week and 20 week MAs, I have the 10 and 30 week averages. ETH is right at the 30. I wouldn’t rule out a little pullback here.
The daily chart shows a really heated RSI at just over 74.
You can also see a 200 Day moving average serving as that same point of potential resistance on the daily. But the strength in ETH seems solid. I think any pullback to the 50 DMA is a buy op.
Are you In Zcash Yet?
If no, what are you waiting for? $300? I swear I’m not a pumper of this coin. I just have a lot of conviction that it is going to be one of the best crypto performers this year and going forward.
The RSI and MACD are both showing signs of a short term top. But I have no doubt the trendline resistance is going to be tested in the weeks ahead. If my thesis on privacy coins is correct, that line will get taken out. And if that line gets taken out, look out.
Disclosure: I’m not an investment advisor. I merely share what I do and why I do it. You shouldn’t take anything I say as investment advice and always do your own research when making investment decisions. Cryptocurrencies, tokens, STONKs, and digital trinkets could all go to zero. I have no job and I live in my wife’s basement. I’m the last person on the face of the earth who you should listen to for financial advice or life advice. I’m not featured on trustworthy financial news sources like CNBC or Bloomberg and I don’t wear a necktie when I make my trades. I’m long BTC, ETH, and ZEC. They are my three largest crypto holdings by portfolio weight.