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.
The #bitcoin chart is simply parabolic at this point. We will see massive changes in the Y axis over a very short X-axis window now. Incredible. We could be on a straight line path to ATHs. $BTC pic.twitter.com/nikeX6H3TZ
— Tarek I. Saab (@FibLines) June 26, 2019
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:
#Crypto #RRG shows relative strength of major coins against @fundstrat 's Crypto 10 index. Bitcoin $BTC has moved into Leading quadrant (top-right) with Litecoin $LTC & Ethereum $ETH weakening. Bitcoin Cash $BCN & Ripple $XRP now lagging. cc @rsluymer pic.twitter.com/qEQVjUQfji
— Optuma (@Optuma) June 25, 2019
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.
Bitcoin takes aim at $100,000 target. $btcusd is experiencing its fourth parabolic phase dating back to 2010. No other market in my 45 years of trading has gone parabolic on a log chart in this manner. Bitcoin is a market like no other. pic.twitter.com/wE4j3riMgI
— Peter Brandt (@PeterLBrandt) June 22, 2019
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?
"Hedge funds and other big traders are betting that bitcoin will fall, even as the digital currency has risen above $11,000 on a new wave of crypto-optimism."
Trend up – way up – shorts up too. https://t.co/i4us1YYT8p
— Jerry Parker (@rjparkerjr09) June 26, 2019
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.