Bitcoin (BTC) is following the bullish scenario we have set out since the start of this rally. As our analogs continue to track, we are content to see Bitcoin (BTC) consolidate near $4,880 (Figure 1). In our view, Bitcoin (BTC) may surge again soon.
That said, another Bitcoin (BTC) rally may be dependent on a move up in other big coins like Ethereum (ETH). Ethereum (ETH) on BitMEX is up against pretty serious resistance at $170. That resistance needs to be overcome. If not, the rally in Bitcoin (BTC) and crypto as a whole may stall (Figure 2).
Ripple (XRP) has an interesting technical picture. When looking at the chart of Ripple (XRP) vs. Bitcoin (BTC), XRPBTC has made a run at a major resistance point. It will be interesting to see if Ripple (XRP) is powerful enough to outperform Bitcoin (BTC) (Figure 3).
Bottom Line: Bitcoin (BTC) looks ok. Ethereum (ETH) has to hurt bears and breakout above $170. If that happens, Bitcoin (BTC) may rally to $5,800. If Ethereum (ETH) stalls or starts falling, the crypto chart read may shift.
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