Cryptocurrency enthusiasts, who’ve long been waiting for to crack the $20K ceiling, cheered yesterday as the most popular digital token rammed past that long-held resistance to notch a new all-time high, for the first time since December 2017. BTC surged on Wednesday, gaining a mind-blowing 9.6%, which is breathtaking at these price levels.
In dollar figures, Bitcoin added an unbelievable $1,863 during the day, to close well above $21,000, finishing at its highest level of the day as bulls voraciously grabbed at anything bears could supply. Today, Bitcoin built on yesterday’s record-breaking surge with another $1,314 gain, or +6.2%, with the cryptocurrency once again trading at the very highest level of the session.
If you’re kicking yourself for not getting in on Bitcoin when it was hovering around $4,000 this past March, consider buying , the second-largest cryptocurrency by market capitalization. We posted a on Ethereum just a week ago, and with Bitcoin’s blistering rise, this significantly cheaper crypto peer stands to benefit significantly.
Trading at almost $663 at time of writing, Ethereum’s market cap is now a whopping $67 billion, making it larger than some publicly-traded companies. But lack of physical, corporate assets notwithstanding, traders will likely respond to the cryptocurrency because of its enormous market cap alone.
While the spotlight has been on Bitcoin, Ethereum outperformed it—it’s up 640% from its March low compared to Bitcoin’s relatively lower 465%. What’s perhaps even more noteworthy, Ethereum still has almost 60% upside before reaching its 2018 all-time high.
As well, the Ether blockchain just got a major upgrade. Known as Ethereum 2.0, the rework makes the cryptocurrency safer and more efficient, as well as more scalable, which will therefore make it more profitable.
Ethereum developed an ascending triangle at the top of a rising channel—a trading pattern formed when buyers continuously absorb sellers’ merchandise.
This pattern at the top of the channel makes perfect sense. Bulls have increased their orders, attempting a steeper incline, reflected by the departure of the 50 DMA from the 100 DMA.
However, the top of the channel has been the supply line for bears since February. Therefore, bulls must absorb bears’ contracts before they continue higher.
The triangle’s upperward slant projects that the buyers’ line is gaining on the sellers’ line, till the upside breakout leaves no doubt that buyers are prepared to continue adding more Ethereum at higher prices.
Trading Strategies
Conservative traders would wait for the price to pull back to retest the triangle/channel top.
Moderate traders might prefer a return-move for a better entry, if not for further evidence of the sharper uptrend.
Aggressive traders would jump right in…after working out a trade plan that makes sense and which they commit to.
Trade Sample
- Entry: $645
- Stop-Loss: $615
- Risk: $30
- Target: $735
- Reward: $90
- Risk:Reward Ratio: 1:3
Author’s Note: This is just one way to play this trade. The sample does not replace the full analysis. Your results will vary based on your timing, budget and temperament. If you don’t know how to fit the trade to your personal needs, take your time. Learn and practice before you gamble with your money away.
