Crypto Back in the Limelight

Bitcoin ($BTCUSD) has had a very strong last couple of months after bottoming around $3300 late last year and into 2019. The same can be said for Ethereum ($ETHUSD) or Ripple ($XRPUSD). Bitcoin recently surpassed the $13,000 level and this has sprouted a new surge in Crypto Mania. So, where do we currently stand?

Tarek Saab of Fibonacci.com believes that we could reach the highs from 2017 (around $19500) very soon. Tarek expands on his thoughts here.

There are many various cryptocurrencies to choose from. Of course, we want to be in the strongest areas, no different than if we were talking about stocks, bonds, or any other asset class. So what specific currencies should we be looking at? According to the RRG below, we want to be in Bitcoin:

From a longer-term perspective, Peter Brandt points out the upward-sloping channel, remarking that if the pattern repeats and the crypto rallies higher, a target of $100,000 is not unreasonable.

When looking at a Weekly chart, the trend is clearly quite strong and the $11,700-12,300 area is one that has seen a lot of attention from a price action perspective. Not much stands in the way of the current price and previous all-time highs. RSI has also remained strong and nearly every spike in volume has come on a green candle. By most measures, the chart looks healthy.

Looking at cryptos from a sentiment standpoint (remember, technical analysis isn't just drawing lines on charts), bears continue to pile on their short bets. Will this drive prices higher as they are squeezed out?

Whatever happens over the coming days/weeks/months, there is no doubt that Bitcoin and other cryptocurrencies will be a highly-discussed topic. Right now the trend is still up, as has been the case since early April. We'll continue to keep an eye on Bitcoin and report back with any major developments!

As always, feel free to reach out if you have any questions.