Price behavior analysis, short to intermediate-term trade set-ups. See trader positioning in Cryptocurrencies and what it might mean – IG Client Sentiment page. We noted towards the end of last week that cryptocurrencies were on the verge of putting in key reversals on the weekly time-frame if they held up through the week (ending yesterday).
However, they will need to break through resistance to make good on those bullish events. Bitcoin is already near resistance around 9222, the January spike-low, and the trend-line from last month.
A break through both of these hurdles could have Bitcoin finding a resurgence of buyers for a larger rebound to unfold back towards 11.5-12k, or better. The lower end of that targeted zone would wipe out the last leg lower from the triangle proceeding the sell-off, a common occurrence after these types of technical patterns lead to a strong move and reversal.
The broader outlook remains, though, despite the possibility of a rally; lower prices look likely as the mania continues to move in reverse. However, this won’t happen in a straight line and with volatility high there will be plenty of trading opportunities for both sides of the market.
Ethereum continues to act the strongest of the group, and if we see a broader surge higher it could rally back relatively close to its previous high before turning lower again. With a little more strength, it will soon test the underside of the November trend-line. Read more from dailyfx.com…
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