The crypto market has been on the mend, as Bitcoin, Ethereum and others have been enjoyed a stellar rebound in recent trading.
For Bitcoin’s part, it held the $30,000 area and ripped off 10 straight days of gains, climbing more than $12,000 in that span. Let’s look at the charts.
Bitcoin gave us a monstrous run off the lows, but it’s now working on its fourth straight daily dip. Aggressive bulls can be long here on a test of the 10-day moving average.
Personally, I prefer to give it a bit more time to prove itself. A daily-up rotation would nice — or at the very least, a reclaim of Monday’s low.
If support fails to materialize, the $35,000 area is in play, where the 21-day and 50-day moving averages currently reside. $42K to $43K is the obvious upside area in the short term, followed by the 200-day moving average near $45K.
How About Ethereum?
Ethereum’s run has been even more impressive, rallying in 12 of the past 13 sessions, with the one “down day” weighing in with a loss of just 0.22%.
In this scenario, I’d be more apt to pull the trigger on a long position at the 10-day moving average rather than waiting for some type of rotation. If the 10-day fails as support, the $2,150 to $2,200 area should buoy Ethereum, with a bevy of moving averages in play.
Disclaimer: Charts and analysis are for discussion and education purposes only. I am not a financial advisor, do not give financial advice and am not recommending the buying or selling of any security.