Bitcoin continues to look very bullish, turning the market around and reaching towards the $62,500 level. Initially, the market dropped below the $60,000 level but has shown enough support to realize the consolidation that we had seen previously was a major driver of where we go next. Looking at the chart, you can make a bit of an argument for a potential bullish flag, with a measured move that could signify a run towards the $85,000 level. That obviously is a longer-term call, but right now, it seems like every time Bitcoin pulls back, traders are willing to jump in.
Bitcoin may have lost a little bit of its lustre in the middle of the week due to some of the smaller meme coins skyrocketing. The main culprit would be Shiba Inu, but over the longer term, it is likely that Bitcoin will continue to attract institutional inflow, especially now that the ETF is available for trading on Wall Street.
Currently, the support level of $60,000 continues to be crucial. Although given the fact that the market has been very noisy, the reality is that every time Bitcoin drops 5%, people are willing to scale back in. The bottom of the overall uptrend is to be found near the $50,000 level, and a breakdown below that level would be extraordinarily negative. Saying that the odds of that happening are extraordinarily low at this point.
Litecoin has been very volatile for the week but has recaptured almost all of the losses from Wednesday. That being said, the $200 level is likely to see a lot of interest, but if we can break above the $200 level, it is likely that Litecoin will go looking towards the $215 level. The 200-day EMA currently sits at the $185 level, where the Friday candlestick found buyers. After this big move, it suggests that the buyers are willing to come in and pick up dips to take advantage of “cheap Litecoin” going forward. The massive negative candlestick from the Wednesday session being almost wiped out is a very good sign indeed.
Ethereum is outperforming most other cryptos at the moment, breaking out to all-time highs yet again. During the week, the market had been very volatile, but both Thursday and Friday were extraordinarily bullish, breaking above the $4400 level. The market has been riding a strong wave higher. With the MACD continuing to signal more momentum, Ethereum is likely to continue looking towards the $4500 level sooner rather than later. Currently, there should be massive support near the $4000 level based upon psychology and previous market action.
Going forward, as Ethereum is at all-time highs, it should probably be one of the better performers in the crypto markets. The massive candlestick from Thursday shows that there is momentum building and breaking above the previous shooting star from two weeks ago suggests that we are going much higher.