Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) buy signals for January 16th, 2020
The cryptocurrency market continuest to rally and buyers continue to scoop up any dips. Evidence of a new bull run in the cryptocurrency market is everywhere. Newsbtc reported that cryptocurrency exchange Gemini has secured the largest custodial cryptocurrency insurance in the world valued at $200 million, which insinuates massive demand is coming. From Business Wire, we’ve learned that the former CFTC Chair Chris Giancarlo has setup a non-profit for US Dollar digitalization. Big money is entering the market and if the old maxim of volume preceding price is true, then this bull run is about to kick off.
Bitcoin (BTC)Bitcoin (BTC)
Bitcoin tagged and confirmed a buy signal entry on January 6th, 2020. The buy signal was initially found on January 5th. A small pullback occurred with a reversal column of O’s forming on January 9th, but rallied just recently on January 13th. It is now up against the most critical level on Bitcoin’s chart: The dominant downtrend angle. The pullback turned into a short trap and Bitcoin rallied very quickly above the double top that formed at 8400. At the present column of X’s, the 8800 value area is the final level to cross to have a confirmed new bull trend on Bitcoins Point & Figure chart. If we see an X form at the buy signal of 9000, the bull will be confirmed.
Ethereum (ETH)Ethereum (ETH)
While Bitcoin has an imminent breakout to start a brand new bull market, Ethereum has a little ways to go yet. The buy signal for Ethereum is at the 200 level – but it’s the condition preceding the entry that is so bullish. In Point & Figure analysis, entries only ever occur when a multiple top or bottom has been broken. The ideal entry on any Point & Figure chart is the break of a triple top or triple bottom. On any instrument on any time frame, the break of a triple bottom or triple top generates massive and violent price moves. A triple top occurs at 190 on Ethereum’s chart, with the buy signal at 200. This would put price right up against the dominant downtrend angle. Given how bullish and robust the break of a triple top would be, it is expected that the downtrend angle will not be an area of significant resistance and would more than likely add to the move higher.
Litecoin (LTC)Litecoin (LTC)
Litecoin has been a blast to trade ever since the middle of December 2019. We had an aggressive long entry at 43 on December 18th, 2019, when Litecoin crossed above the 50% range of the pole pattern of O’s. Another bullish entry occurred on January 5th, 2020, at 44, with a break of a double top. A small pullback was generated and then moved higher to create a kind of trick area to decide where to place an entry. There was a clear double top formed at 48, but an entry at 49 would have meant a split double top at 49. Ultimately, we decided to play it safe and wait for an entry above both levels to go long at 50. Litecoin then performed one of the most critical moves any major cryptocurrency has done since June 2019. A congestion zone of downtrend angles was broken between 51 and 53. Out of the ‘Big 3’ (Bitcoin, Ethereum, and Litecoin), Litecoin is the only major cryptocurrency that is currently trading above the downtrend angle and has now converted into a full-blown bull move. Litecoin currently has a text bull flag formation, which is a powerful bullish continuation pattern. The current buy signal is at the 60 level. If Litecoin hits that buy signal, then I am anticipating it to move to the 92 value area as the next resistance zone.