Crypto Update: Zcash Price May Repeat 2017 Bull Run
The Zcash/US Dollar (ZEC/USD) entered 2018 with a lot of potential. During the first week of January alone, the pair skyrocketed by as much as 97.9%. Unfortunately for buyers at this level, reality hit just as market participants were extremely euphoric. Profit-taking commenced at the all time high of $900 and that has been the major theme since.
Nevertheless, those who bought recently and those who are still buying have reasons to be optimistic. It seems that ZEC/USD may be preparing for an encore performance of its impressive 2017 bull run.
Key Support Trumps Descending Triangles
Descending triangles often have a bearish bias. The formation of lower highs eventually puts too much pressure on a key support level. Usually, the breakout happens on the third drop to the support. However, the descending triangle becomes bullish if the market manages to take out the resistance before the third drop. ZEC/USD does this very well.
Back in September 2017, the market was in real danger of triggering a descending triangle. After all, ZEC/USD has climbed from $22 on February 21, 2017 all the way up to $449.99 on June 14, 2017. However, $170 proved to be such a strong support that a second drop ignited a rally that torched the resistance. The breakout was so convincing that the market converted the resistance into support. This was the beginning of an impressive bull run to $900.
Daily chart of Zcash from June – December 2017
More than half a year later and the pair appears to be doing the same thing all over again. It is creating another descending triangle and still relying on the $170 support level. Bears may try their very best to breach it but at the end of the day, $170 is where bull runs are made.
Daily long term chart of Zcash
Fractal Emerges on the Hourly Chart
The previous statement sounds overly confident but that confidence stems from market psychology. ZEC/USD has a habit of annihilating descending triangles. It then turns the resistance into a firm support level and uses it as a springboard to reach new heights. This pattern can also be seen on the hourly chart.
Hourly chart of Zcash
Like what was said above, bears tried their very best to take out $170. On a smaller time frame, they were able to push the market down to $150. Unfortunately for sellers at this level, $150 was a bear trap. Bulls eventually recovered past $170 and broke out of the descending triangle on the hourly chart.
If ZEC/USD is bullish on the hourly, then it is only a matter of time before the pair breaks out of the descending triangle on the daily. We might be looking at a repeat of the 2017 bull run.
Zcash has been in bear territory for the better part of the year. However, it appears that things are about to change soon as the market creates another descending triangle on the daily chart. With the hourly chart looking bullish, it is only a matter of time before ZEC/USD starts a bull run that can rival its 2017 counterpart.
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