Ethereum reaches new yearly highs; will Bitcoin and Litecoin follow?
Over the last 28 hours, Ethereum surged nearly 8 percent invalidating the bearish signals that multiple indicators were presenting. The bullish impulse allowed it to reach a new yearly high of $199.30. If volume continues picking up, Ether could climb up to the next level of resistance that sits between $206 and $228.
While ETH seems to be building up bullish momentum, Bitcoin and Litecoin could follow.
Demand for Bitcoin could spike up
Bitcoin could soon follow ETH’s path as several bullish patterns are developing on its 12-hour chart.
First, a morning doji star candlestick pattern appears to be forming within this time frame. This technical pattern is considered a bullish reversal formation that usually occurs at the bottom of a downtrend.
Morning doji stars are composed of three candlesticks: a long red candle, a short candle or doji, and a green candle. The combination of these three candlesticks indicates that BTC is gaining bullish momentum and could be about to surge.
Second, the TD sequential indicator presented a buy signal the moment the current green two candlestick began trading above the preceding green one candle. This technical index forecasts the beginning of a new upward countdown all the way up to a green nine candlestick.
If Bitcoin is able to close above the recent high of $9,630, investors could enter into a FOMO (fear-of-missing-out) stage pushing the flagship cryptocurrency up to the $10,000 resistance level. Breaking above this significant price hurdle could take BTC to $10,485.
Failing to close above $9,630, however, could trigger a retracement to the 78.6 percent Fibonacci retracement level. This level of support sits at $8,950.
Litecoin is trending up
Litecoin looks bullish from a long-term perspective since a golden cross formed on its 1-day chart. The bullish formation developed as the 50-day moving average moved above the 100-day moving average signaling a potential breakout.
Many investors see this pattern as one of the most definitive and strong buy signals that could start a long-term bull market.
Additionally, LTC’s price action has been contained within a parallel channel since Jan. 3. Since then, every time this cryptocurrency plunges to the bottom of the channel, it bounces off to the middle or the top. But, when it surges to the upper boundary of the channel, it pulls back to the middle or the lower boundary.
Now that Litecoin seems to be bouncing off the middle parallel line of the channel, a move to the upper boundary can be expected. This resistance level sits around $80.
Nevertheless, if the middle line of the parallel channel fails to hold, Litecoin could fall to the bottom at around $62.
Since the beginning of the year, Bitcoin has surged nearly 40 percent, Ethereum climbed up 57 percent, and Litecoin skyrocketed 90 percent. The massive bullish impulse that these cryptocurrencies have experienced in such a short period of time suggests that a retracement is near. However, Ethereum just made a new yearly high today, which could indicate that bulls remain in control.
If demand continues to rise, it is very likely that Bitcoin and Litecoin will also reach a new yearly high soon.
At the time of press, Ethereum is ranked #2 by market cap and the ETH price is up 8.1% over the past 24 hours. ETH has a market capitalization of $22.48 billion with a 24-hour trading volume of $15.4 billion. Learn more ›
Ethereum6 Feb at 4:26 am UTC
At the time of press, the global cryptocurrency market is valued at at $272.64 billion with a 24-hour volume of $139.36 billion. Bitcoin dominance is currently at 64.23%. Learn more ›