Chart of the Day - Thursday, July 23rd, 2020

Today’s Chart of the Day was shared on Twitter by Tom Bruni of All Star Charts (@BruniCharting). Cryptocurrencies have garnered some attention over the past couple of days as Bitcoin drifts higher toward that crucial $10,000 level. As of writing, Bitcoin is trading at $9,600, which means it still needs to gain about 7-8% before a breakout is confirmed. Until then, Tom points out that Ethereum could be the better bet here, as it's just starting to break out on both an absolute and relative basis. In a note earlier today titled; "Buying Ethereum's Dual Breakout," "Tom explained, "Ethereum/Bitcoin is breaking out of a 1-year base and reclaiming a 2.5-year support level at 0.0245. Also, notice that momentum is in a bullish range and the 200-day moving average is upward-sloping, both conditions that are supportive of higher prices. Is the next stop over 50% higher at 0.04? We think so. On an absolute basis, Ethereum is also emerging from a 1-year base. If prices are above $225, then this breakout is intact, and the next stop is former support/resistance near $400."