This week the Altcoins maintained their bullish momentum despite price pullbacks hence they are the top gainers of the week.
This week XRP maintained its strong bullish momentum and retested a major supply zone at $0.48 making a retracement with high demand in control.
A look at the chart on the daily time frame shows a clear uptrend as defined by the moving averages (200 EMA). The supply zone has been tested for the third time and is susceptible for a breakout as we expect the price to pierce through it if the bullish momentum is maintained.
The price action is currently consolidating and we expect a breakout in either direction but our major demand zone is still at $0.38, where we would be looking to go long.
This week, Litecoin gained as the increased bullish momentum pushed the price action to the supply zone on the daily time frame.
A look at the daily time frame clearly shows that the price action of Litecoin has approached the major supply zone at $121 while a peep at the lower 1 hour time frame reveals a clear volume diversion indicating that the bullish run is over and we should begin to sell off our assets till the price action approaches our demand zone of interest.
Last week, we envisaged a drop to our demand zone of interest which is between $244-$236. This week Ethereum followed suit and has continued to make its bearish price movement as envisaged till the price action of Ethereum reached our demand zone of interest that is at $244-$236 and rallied off till the current price at $268. Etherum is currently making a rally in tandem with bitcoin with respect with its correlation coefficient record. Hence, bullish sentiment has set in and we expect more buyers to come in and drive the price higher.
This week Bitcoin has maintained its current price above $8000 reaching a new high of $9220, with an increased market cap of $6.74b while supply maintained above 17.6m based on data from coincap. These fundamentals show a clear demand dominance with the liquidity to mop up the short supply marking a strong demand.
These fundamentals have consistently voided every technical analysis suggesting a fall in price. Hence, this bullish sentiment is likely to last longer than expected and this has been proven on the chart as Bitcoin’s bullish momentum continuously and consistently takes out every supply level on the higher time frame.
The advice is to make your entry on the retracement to the supply zone on a lower time frame say a one-hour time frame.