Analysis: Bitcoin Storms Higher on BIP 91 Lock-In as Crytpocurrencies Continue Rally | Hacked: Hacking Finance
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Analysis: Bitcoin Storms Higher on BIP 91 Lock-In as Crytpocurrencies Continue Rally

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Analysis: Bitcoin Storms Higher on BIP 91 Lock-In as Crytpocurrencies Continue Rally

Introduction

This article was posted on Friday, 11:06, UTC.

The most valuable coin is still leading the way higher, after breaking out of its one-month long correction that took BTC 40% lower. The scaling debate has been resolved by a much-needed, but still debated consensus regarding the BIP 91 protocol, propelling Bitcoin towards its all-time highs.

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The currency that has been pushed lower by momentum factors and hard fork fears is now in a short-term uptrend after forming a higher low and breaking the long-term trendline. The strong momentum move took the coin past $2500 and the key $2650 resistance level, following our previous projection from June. Long-term investors are advised to lock in some of the profits in BTC after the huge rally, although odds favor a rally to new highs in the coming weeks.

BTC/USD, Daily Chart Analysis

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The other majors are also higher, with  Ethereum lagging BTC in the last couple of days, but Dash, Monero, Ripple, Litecoin, Ethereum Classic, and most of the smaller coins following Bitcoin to new rally highs. The total value of the crypto-market is drifting towards $100 billion again, almost doubling in a matter of days after the weekend panic. Let’s see how the majors are shaping up following a very bullish week so far.

Ethereum

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ETH/USD, 4-Hour Chart Analysis

The ETH token failed to hit a new rally high, so far, as Ethereum underperformed Bitcoin in the recent leg higher, although it,s already up by 80% from its panic lows on Sunday. The coin faces a strong resistance zone around $250 with the declining trendline and several prior levels converging in the area. ETH will likely be helped by the strength in small cap coins and we expect a new short-term uptrend to be confirmed in the coming period.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin showed considerable strength amid the BIP 91 rally, and managed to rise above the crucial $44 level, re-entering the long-term uptrend that it broke recently. We still expect more sideways action in the short-term, but the long-term picture is definitely positive and a rally to test the prior highs should follow in the coming period. Below $44 further support is found ar $40 and at the $38 level.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash continued higher after the break-out yesterday following through the short-term buy signal with a strong rally above $200 and a spike towards the prior high of $220, as we expected. Our long-term target remains just above $250, with the short-term support/resistance level at $190 being in the focus, for now.

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple is still relatively weak, despite breaching the previous short-term rally high today and staying above the 0.1750 level. The two-month long declining trend remains intact, with the main trendline currently converging with the strong resistance zone around the 0.22 level. Short-term traders shoudl still avoid new positions in the currency, but invesotrs could still add to their holdings here.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic is also among the weaker coins, trading well below the $18 level despite slightly rising above the $16 resistance. The long-term picture is still bullish, but the coin needs to stay above the $16 level to remain on a buy signal. ETC faces more resistance at $20 with the prior highs ahead at $23 as well.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero looks set to test the declining long-term trend in the coming days, after finally showing short-term strength, and clearing the $40 level yesterday. The coin formed a long-term base pattern between $32 and $37 and it could be in for a short-term consolidation before another leg higher. Monero is now on a short-term buy signal and above the declining trendline at $42, t faces a strong resistance level at $46.

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Mate Cser

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

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