Bitcoin is gaining altitude today, amid a sharp drop in prices of some alternative currencies.
Other alternative currencies like NEM (XEM), Cardano (ADA) and Stellar (STR) are down at least 12 percent each. More importantly, the XRP/BTC (ripple-bitcoin) pair has taken a beating in the last couple of hours. XEM/BTC, ADA/BTC, ETH/BTC (ethereum-bitcoin) and LTC/BTC (litecoin-bitcoin) are also losing altitude.
Price chart analysis also suggests BTC could extend the rally to $18,000-$18,600 in the short-run.
- An inverse head and shoulder breakout. As of writing, BTC is trading well above the neckline hurdle of $15,550, so the bullish breakout is pretty much a done deal. Prices could rise to $18,600 (target as per the measured height method) over the weekend.
- Other factors – including a breach of the falling trendline, a bullish break of the falling wedge, higher lows as represented by the rising trendline – also favor further upside in BTC.
- The relative strength index (RSI) is above 50.00 (in the bullish territory) and rising, indicating scope for a rally in prices.
- BTC could cut through resistance at $16,490 and move towards $18,000–18,600 mark over the weekend.
- Bearish scenario: A failure to hold above the neckline support (former resistance) of $15,500 followed by a break below $14,230 today would open the doors for a drop to sub-$12,500 levels.
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