Bitcoin and crypto build momentum as rally gathers steam

Bitcoin has pushed higher after a two-day lull, reaching $4,323 before pulling back.

Volumes have picked up again too, now at an impressive $24 billion as the crypto rally picks up steam.

On Bitfinex BTC is currently priced at $4,275 as the price nears the 50-day exponential moving average. The Ichimoku cloud still shows forbidding resistance from 4600 to 5735.

However, a breach of resistance at 4600 would be a bullish flag.

BTCUSD 1-day chart, Bitfinex (TradingView)

Ethereum has recently taken up a leadership role in this resurgent bullish market.

Trading at $84 on 7 December, ETH has climbed to $144 for a 70% gain. Hopes for solid advance on the Constaninople upgrade and hopes for a Ethereum futures product after the USCommodity Futures Trading Commission (CFTC) issued a request for information a couple of weeks ago.

The launch of the Raiden Network payments solution on Ethereum on 21 December is also helping to boost the price.

ETH trading volumes are rocketing and that could be the prelude to a parabolic surge, according to Crypto Goat on Twitter:

EOS is also on a role, boosted by China’s Centre for Information and Industry Development (CCID) reiterating its top-place ranking for the “third generation” blockchain platform.

XRP now base pair on Binance

Ripple’s XRP is not missing out on the party either. It is 15% higher according to coinmarketcap at $0.43. Trading at $0.29 on a week ago on 17 December, XRP has jumped 50%.

XRP has been boosted today by the news that top exchange Binance is listing XRP as a base pair.

The general advance is all the more encouraging given the delay in the launch of the Bakkt bitcoin futures product due to the slow-moving CFTC and the Trump-induced shut down of the US government.

Also, news out of JP Morgan noting that investment banks were slowing down on their move into crypto was compounded by a Bloomberg report confirming the same.

However, the firmness in the marketplace of late could yet prove that Wall Street’s greatest and finest may have got their timing wrong – but they can no doubt reenergise their efforts if needed.

Stock market woes to show crypto’s worth

The downturn in the stock markets at this point is also adding to the allure of crypto which is currently exhibiting a negative correlation with equities, making it something of a safe haven for battered investors.

US Treasury secretary did a ring round of top Wall Street banks to calm nerves but he may have achieved the opposite of his stated intention of bringing calm. Market participants are asking “What is he worried about?”.

The markets are no a half day today but the crypto markets will of course carry on 24/7, providing the opportunity to make further headway.

As always with volatile crypto we should not get too far ahead of ourselves, bearing in mind the short covering that has been going on, where sorters are forced to liquidate their positions by going long, adding to buying momentum.

That said, the so-called Santa Rally seems to be strengthening.

Merry Christmas!

 

 

 

About the Author

Gary McFarlane
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK's second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane

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