We are breathing a sigh of relief that our bullish technical constructs in Bitcoin (BTC) are tracking.
Looking at Elliot Wave work in Bitcoin (BTC) on BitMEX, a move to $10,000 may be unfolding (Figure 1). We see this rally in Bitcoin (BTC) accelerating. It is possible that this move higher could be an emotionally charged one that could see Bitcoin (BTC) go beyond $10,000.
Looking ahead, a search for the next big move has led us to an unlikely place. Looking at the chart of Ripple (XRP), we see a consolidation pattern that could lead to a rally (Figure 2). Previously, we had thought that instruments like J.P. Morgan Coin and Facebook coin could really hurt Ripple (XRP).
That may be true, but one thing is interesting. Ripple (XRP) has not cracked as of yet. In technical analysis, if an instrument should go down — and it doesn’t — it could go up.
We also noticed that Coinmarketcap.com shows a $10 billion gap in market cap between Ripple (XRP) and Ethereum (ETH). In the past, there have been instances when big market gaps in market cap between these two coins have resulted in one coin rallying to catch up with the other. That leaves the possibility that Ripple (XRP) could move up given a catalyst.
Bottom Line: Bitcoin (BTC) is the rising tide that hasn’t lifted many “boats.” In this analogy, boats refer to other big coins and alts. If Bitcoin (BTC) continues to rally, we see other big coins following. Ripple (XRP) may or may not be one of those coins. The Ripple (XRP) chart is interesting and worth keeping an eye on.
The Cyrpto.IQ Trading Desk has been taking advantage of the rally in Bitcoin (BTC). They are hard at work figuring out if the rally can spread.
Join me there.