Bitcoin has again entered a period of consolidation and again the big question is: where will it break out?
On a daily chart, the range remains above the 200 period average, which is a good support area, with a potential bullish flag beginning at this stage. But as the price continues to consolidate over the 200 period, Bitcoin remains neutral – bullish territory on the daily chart.
Ethereum remains below the 200 period, and is also in the process of consolidation. The 50-period here plays the role of dynamic support, with the bulls in the area at the moving average managing to keep the price in the range 174 – 198. Here we have prerequisites for the formation of a triangle, but there is no catalyst and additional price action to confirm its type and potential direction.
With Litecoin, the situation is identical, but the price here manages to move beyond the 50 period and it looks like we will see an attempt to break the main diagonal resistance and the potential bullish triangle in this case. A possible upside break would also unlock upward movement at ETH, with LTC expected to attack the area at 70 in this case.
The cryptocurrency or greed index is currently at 53, which is neutral territory. This indicates that traders are still not sure where Bitcoin will go. For the time being, the price action remains neutral to bullish, within current ranks.
China has lifted the ban on BTC digging. This is not surprising given how strongly the Chinese are willing to digitize their yuan. Overall, this is a scourge for Bitcoin.
Trader Martin Nikolov