Crypto breakout drives massive short-covering, looks important technically
Key Takeaways
- Many Cryptocurrencies look to have made significant technical breakouts starting early Friday morning with BTCUSD, SOLUSD, ETHUSD, LTCUSD, and XRPUSD all jumping 8% +
- Technically this looks to be a positive given prices having eclipsed weekly highs as well as one-month downtrends. This gives rise to the possibility that BTCUSD might be kicking off its traditionally bullish 4Q seasonal rally
- Momentum remains positive on weekly charts and has turned quickly back to positive territory also on daily charts as a result of Friday’s surge
Bitcoin finally resolved its 10-day sideways range by exceeding the downtrend which had been in place since early September. Note, trends had turned negative a month ago technically, but after a visible three-wave decline into late September, Friday’s move is a big positive in helping to resolve this consolidation. First upside target lies at September highs at 52,956, then 64,895
Key Technical positives:
Daily and weekly momentum now positive per MACD (Moving Average Convergence Divergence)
DeMark counter-trend indicators triggered TD Sequential “13 Countdown” signals on 60 min and 120 minute charts that often can be important in signaling trend change in late September
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