Consolidating Bitcoin Price May Be Setting Up Ethereum for a 30% Surge

pubblicato su by Cointele | pubblicato su

Bitcoin dominance remains high at 66.3% and so does the amount of attention traders are dedicating to the largest digital asset's price action.

Many traders still have burned fingers from attempting to take altcoin positions throughout 2018.Altcoins sharply decreased in value as Bitcoin made a parabolic move from $4,000 to $13,800.

26 until Sept. 22 and traders appeared reluctant to take up positions in altcoins as previous market cycles showed that strong upside moves from Bitcoin led to a drop in altcoin prices.

Some traders have found confirming evidence in comparing Bitcoin and altcoin fractals to identify bottoming patterns and the possibility of future rallies.

Others recall 2018 when Bitcoin traded in the $6k range for many months before dropping to $3,200 in November as the Bitcoin Cash hard fork took place.

Bitcoin's recent price action in the $10k to $9k range might have led some traders to predict that a drop below $8,000 might eventually bring the digital asset back to the $6k range.

Last week Heath Tabert, the chairman of the United States Commodity Futures Trading Commission said that he believes Ether is a commodity and Tabert suggested that Ether futures trading would soon become a reality.

Ether price is still capped below the overhead moving averages and a move above this would set the price at slightly above $200. Traders should watch for a higher high being set at $215 which is merely $1 away from the 20-weekly moving average.

A relatively effortless trading plan would involve taking 25% of profits at $204 which aligns right with the overhead ascending channel trendline and is a 9.6% gain from the current price of $185.50.The next take profit stop is at $221 and taking another 25% off the table secures an 18.25% gain.

As mentioned earlier, above $240 the selling pressure alleviates on the VPVR and traders could move their stops up and let the remaining 25% run in hopes of knocking out $305 which aligns with the upper arm of the Bollinger Band indicator on the weekly time frame.

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