Bitcoin has another meager breakout. This is great for bored HODLers who are waiting for the next breakout. However there does not seem to be as much momentum to this breakout as we'd like. Bitcoin has been holding a very large range between $30K and $40K. So even a 10% rally is not exciting. This will be more significant as we near all time highs, or even break $40K again. The Kovach OBV is very flat, suggesting that the momentum we saw from the end of last year has dissipated for now. Anticipate Bitcoin to maintain the $30K - $40K range. Any encroachment upon these boundaries should be taken as a mean reversion trade. Don't get scared if BTC tests $30K again, this will be a great buying opportunity. Other nice levels to buy include $31.6K, $33.6K, and $35.2K.
Do we ever get tired of winning? No we do not. We called out the next price target in Ethereum exactly. We warned you Ethereum was ready to breakout, and said explicitly "When it breaks out, 1550 is the next target." Hopefully some of you took advantage of this. You had plenty of time to accumulate as Ethereum ranged. We had a classic bull wedge pattern forming, and the Kovach OBV was strong. Currently we are hovering at right about $1550, our target level. We will have support from $1424, which is the upper bound of our ascending wedge pattern. Watch for ETH to come up for air and perhaps hold current levels or even retrace. Our next major targets are in the $1700's.
Litecoin made a meager breakout too, along with BTC and ETH. Unlike ETH, LTC still has a ways to go before new highs. Currently, we are facing resisntace at $154, which is a Fibonacci level. $166 will provide resistance if we can break through. It is much more likely that we will retrace a bit or range first, since LTC is already a bit extended. It is holding a pretty broad range between $124 and $154. But if it extended the range to $111 and $166 that would not be unreasonable. We still have a way to go before all time highs, so use this time to accumulate a position for the long run. In the short term, avoid FOMO.
