Bitcoin Bulls on Parade & Altcoin Majors Flying
Going to try and keep it straight to the point this week. Last update I said that as long as $8,500 held on a weekly basis I was bullish to $9,500; well $8,500 certainly held and there was even a nice dip buying opportunity down to $8,300 and we're hovering right below the $9,500 weekly level now. I'm mostly flat on Bitcoin right now but will be a buyer on a close above $9,600 or a dip into the $8,500-8,900 region.
Meanwhile I've starting paying more attention to altcoins than I have in a very long time and they are flying; I never recommend FOMO but these are the types of moves that you can blindly buy in and likely end up profitable shortly after. My advice, and what I'm following - open your altcoin chart, mark the most critical weekly level you can find and either buy a weekly close above it or a pullback into that level. Once bids are filled, invalidation is a weekly loss of that level. Alright, onto Bitcoin.
Monster engulfing monthly candle for Bitcoin to wrap up January and kick off 2020 with a bang. It also closed above the $9,150-9,250 level and therefore provided we see that level hold heading towards the end of February the next logical level is $10,100-10,300.
Bitcoin not only held the $8,500 weekly level and the 20 week moving average but actually gave an amazing buying opportunity by re-testing both. Did you take advantage? Now BTC is ramming up against the $9,500 resistance level and this is really the level that stands between Bitcoin breaking weekly market structure and setting a higher high. I can't take out any longs here in good faith but I'll be longing with everything I can on a break above and re-test. Given the clear bullish nature and the upcoming halving I'm also an aggressive dip buyer, though significant dips have been few and far between. $8,750 is the area I'd love to bid the most but currently have bids spread $8,400-8,900 and will gladly take anything that gets filled. It's easy to be euphoric right now but with Open Interest over $1B, weekly resistance overhead it's worth being cautious as BTC is known for some major swings. Losing $8,500 on a weekly level remains my level of invalidation for a bullish bias though a dip into the low $8,000's isn't out of the question.
Support: $8,500, $8,750
I've been unabashedly bullish on Ethereum since $155 was regained on a weekly level. Despite that, I only have a small position and have myself to blame for that one - got too greedy with the entry. That being said, $196-200 is a really critical level; break that and I think we rip to $230 which if cleared I'd expect $275-300. I'm ideally looking for pullbacks to the mid-high $170's but becoming less certain it occurs so although I have bids, I'm expecting my next entry to be on a close above $200.
Support: $155, $176
Litecoin is a similar story to ETH - I've been vocally bullish since $50 broke and yet only filled a small position. Now it's coming up to clear resistance from $73-80 and beyond that I'm expecting fireworks though it likely struggles a bit at $90 before testing $100+. Mid $60's is an ideal pullback where I'm hoping to fill some bids.
Altcoin Price Discovery - Tezos
Open an altcoin chart and it's hard to find one that looks bad right now. But Tezos (XTZ) looks amazing. Price rocketed through former ATH's and broke clear of the daily range high of $1.78. I'm bidding heavily in green in the hope of a retest and if for some reason price dumps through that I have more bids at the weekly level in red. You can pick up some Tezos with up to 5x margin on Binance.
Bitcoin is undeniably bullish, though now is not the time to buy - wait for $9,600 reclaim or a retrace to the $8,000's. Alts look incredibly strong - if there's a pullback to key weekly levels, buy them.
Decide to trade based on my charts above? Do me a favor and register at Bybit which is currently offering up to $90 bonus for new sign-ups and is proving itself to be the best margin exchange out there. You can also read my full review of Bybit.
Make sure you don't miss the latest reviews & tips from Crypto Advocate. Subscribe today!
Disclaimer: this is not financial advice and cryptoadvocate.net is in no way responsible for any claims, losses or expenses that may result by following information available on this site.