Bitcoin News and Talking Points
- Bitcoin may push back to $10,000 if resistance fails.
- Ethereum needs a push, Ripple builds on support.
Bitcoin (BTC) Breakout May Lead to a Test of $10,000 Shortly
After a few days of trading within a narrow range, the latest Bitcoin chart may see the largest cryptocurrency by market capitalization test $10,000 of more, but an upcoming resistance zone needs to be broken to confirm higher prices. BTC currently trades at the top-side of an ascending triangle and above the 78.6% Fibonacci resistance level ($8,523) and a breakout would see the digital coin target the $9,300 - $9,900 resistance zone.
Bitcoin (BTC) Price Chart Daily Timeframe (October 8, 2017 – February 12, 2018)
IG Client Sentiment data show 68.1% of traders are net-long with the ratio of traders long to short Bitcoin at 2.13 to 1. The number of traders net-long is 2.7% higher than yesterday and 11.5% lower from last week, while the number of traders net-short is 8.0% higher than yesterday and 15.4% higher from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Bitcoin prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Bitcoin price trend may soon reverse higher despite the fact traders remain net-long.
Ethereum (ETH) Needs a Decisive Upside Break
Ethereum’s comeback after the recent sell-off has stalled around an important technical resistance level for the last week. The 50% Fibonacci level at $853 has been tested a couple of times but ETH needs to break and close above this level to keep the uptrend intact. Upside momentum could see Ethereum trade around $1,000 in the short-term while on the downside $717 should provide healthy support. In addition the stochastic indicator is still pushing higher indicating a degree of upside momentum.
Head foreign exchange instructor Jeremy Wagner has produced a detailed explanation on How to Trade with Stochastics as part of a series of technical articles that can be found in the DailyFX Education Center.
Ethereum (ETH) Price Chart Daily Timeframe (October 20, 2017 – February 12, 2018)
Ripple (XRP) Clears Downtrend, Price Supported
Ripple has rebounded off a clear support level and looks set to push ahead further although minor falls from the current level cannot be discounted. The clear break and close above the $0.86 -$0.92 support zone should leave the 61.8% Fibonacci level, and cluster of late-January highs around $1.38 as the next achievable upside target. The stochastic indicator is in heavily overbought territory so buying on any pull-backs may be the best course of action for now.
Ripple (XRP) Price Chart Daily Timeframe (November 11, 2017 – February 12, 2018)
Cryptocurrency Trader Resources – Free Practice Trading Accounts, Guides, Sentiment Indicators and Webinars
If you are interested in trading Bitcoin, Bitcoin Cash or Ethereum we can offer you a wide range of free resources to help you. We have an Introduction to Bitcoin Trading Guide along with a Free Practice Account. In addition we run a Weekly Bitcoin Webinar and have an IG Bitcoin Sentiment Indicator to help you gauge the market and make more informed trading decisions.
If you any questions you can leave them in the comments section at the end of this article or you can contact me via email at Nicholas.email@example.com or via Twitter @nickcawley1.
--- Written by Nick Cawley, Analyst.