Bitcoin surged above the prior high without any real issue, touched $2900 and pulled back to the break-out level from around the first Fibonacci-extension at $2925. BTC is still on a buy signal with the short-term trend still being intact. The Fibonacci based targets for the current move are $3050 and $3260, with the prior swing low at $2477 providing primary support. A new swing low might be developing near $2690 which would be confirmed by a break above the $2900 level, providing an opportunity for short-term traders to raise stop-losses to that level.
Ripple remained in the same consolidation pattern that we laid out in yesterday’s analysis against the US Dollar while drifting below the 0.0001 level compared to BTC, still showing relative weakness. The USD is still a hold, with no new positions advised until the relative weakness persists.
Ethereum broke out above the $250 resistance following Bitcoin’s lead, but so far it is still trading in a consolidation pattern in the BTC pair. That said, ETH/USD remains at least a hold, and the ETH/BTC pair is also holding on well above the support zone between 0.08 and 0.085. The upside targets for the move are still $280 and $300, but short-term traders could cash out on some of their positions as the pair reached a Fibonacci-level just above $260, with the MACD indicator showing negative divergence.
XMR was one of the few coins that rose together with Bitcoin overnight, confirming the relative strength that we mentioned on Monday. The rally is still likely to hit the previous all-time highs at $58 on the Dollar pair, after breaking out above the key $50 level, despite this afternoon’s pull-back.
The setup of yesterday’s trade recommendation is still active, with both the USD and the BTC pair holding in their technical pattern, despite the Bitcoin break-out and the increased volatility. The BTC pair is right in the convergence zone that we pointed out yesterday, hinting on a significant move in the coming days.
Ethereum Classic is still trading just below its prior high in a very narrow consolidation range against the USD, while drifting lower recently against Bitcoin amid the broad altcoin correction. The coin is getting close to a convergence zone on the USD pair, which could end the bullish consolidation, and set up a move towards $22 following a break-out above the $17.75 level.
Dash’s technical picture in the Dollar pair is little changed amid the Bitcoin move, which means that it has been losing ground in the BTC pair. The Dollar pair still looks promising and a break-out above the $150 level would trigger a short-term buy signal, with an initial target of $166, and further targets at $176 and $183. A move below $130, on the other hand, could set-up a move back to $115 or even $100.
Featured image from Antana, flickr.com