Story by: Pedro Febrero
At the time of writing, the positive momentum in the crypto markets is still present. Much like the two previous weekends, the entire market has consolidated nicely, despite a bumpy start to Monday.
Bitcoin has broken past the $6,000, $7,000, and $8,000 levels with ease. Since then, we touched the $9,000 level for a brief moment, before returning to the $8,500 area soon after.
As I mentioned last week, the pump could be linked to the Consensus conference that took place in NY last month, as we’ve seen similar movements prior to this crypto conference in previous years. Also, as we saw during most talks and speeches, loads of crypto enthusiasts clearly see BTC as a store of value.
Bitcoin is an uncorrelated asset that is helping investors dodge economic and geopolitical risks in the form of trade wars, sluggish GDP growth, and what appears to be a new era of quantitative easing for central banks. For that reason, the coin has emerged as the top-performing asset of 2019, vastly outperforming stocks, bonds, commodities, and government-backed currencies.
Let’s take a look at how the top cryptocurrencies performed during the weekend.
Bitcoin’s rally went parabolic last weekend, and the momentum lasted throughout most of the week before a 12% dive on Thursday. Bitcoin was sitting at around $8,700 on Sunday before a drop down to $8,500 on Monday morning.
The overall momentum seems to be quite positive, although there are some fears price is overbought. Nevertheless, I tend to avoid countering trends, as it’s usually riskier than just going with the flow. If prices are roaring, you probably shouldn’t try to short them.
Don’t forget that I consider Bitcoin to be in a bull run when the 20-day EMA is above the 50-day EMA and the latter is above the 200-day EMA. By looking at the chart above, we’re clearly in a bull run. Not only that, we’ve touched a critical level around $9,000, which could be an indicator the market is looking to continue pushing forward.
Looking at the Ethereum chart above, we can clearly see a couple of interesting features. Firstly, the 20-day EMA has crossed the 50-day EMA, which is a very bullish signal. Price is now also trading well above the 200-day EMA. Moreover, there could now be new support forming around $195, just above the 200-day EMA. The newly achieved yearly highs for Ethereum have been brought about thanks to the massive boost in Bitcoin last month. Nonetheless, the 50-day EMA hasn’t crossed the 200-day EMA yet, meaning there is still room for short-term gains.by