BOTS crypto news week 5
The first days of February, like the past few months, were again very exciting for Cryptocurrency. Major exchanges such as Binance and Coinbase reported that they were experiencing record crowds. This will probably have to do with the fact that this week both Bitcoin and Ethereum rose by double digits. In this Cryptomarket update, we look back at last week's update and look ahead to what we might expect in the coming weeks.
By: Steven Eblé
We begin this Cryptomarket update with Bitcoin. Last week Bitcoin was worth 34,000 US dollars and I showed that it was in what is known as a falling wedge pattern. In doing so, I indicated that a falling wedge pattern is considered bullish continuation patern, which breaks out upwards in 68% of the cases.
The chart below shows Bitcoin's value on a daily time interval. It can be seen that Bitcoin has now broken out of the falling wedge pattern and has already gained more than 15% since then. The measured move from this pattern could theoretically take Bitcoin towards the US$48,500 mark.
Since the day before yesterday a hidden bullish divergence is visible on the oscillators. This can be deduced from the fact that the MACD and RSI are making a lower low, while the price is making a higher high . Hidden divergences are continuation signals. They often occur in the middle of a trend. When you see a hidden divergence, there is a big chance that the trend will continue.
A breakout of the falling wedge, combined with hidden bullish divergence on the daily time interval, could be an indication that Bitcoin's uptrend will continue in the coming weeks.
Last week, I also wrote about Ethereum. I indicated that unlike Bitcoin, Ethereum had not yet broken its all time high of December 2017. Ethereum made consistent higher lows just below its all time high recently , accompanied by a MACD and RSI that gave room for growth. For these reasons, Ethereum's chart reminded me very much of Bitcoin's December price trend, when it was still below US$20,000.
Meanwhile, Ethereum has broken its all time high. At its highest point, Ethereum stood at 1750 US dollars, 50 US dollars less than we indicated last week as the measured move of the construction.
On Monday, CME futures will open for Ethereum. It is very difficult to know what effect this will have on the price. For this reason Ethereum's short term development is a bit more difficult to say than Bitcoin's. The measured move of the pattern has almost been reached and Ethereum may well correct from here.
On the other hand, Ethereum has only risen about 20% since breaking 1450 US dollars barrier. Bitcoin rose by more than 100% after breaking 20,000 US dollars. If Ethereum were to follow Bitcoin on the same footing in the coming weeks then this is only the beginning.
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