Bitcoin Bears Looking for A break Below 8,310
Bitcoin and Litecoin prices are rising today, helped by the rising market demand for risky assets. The BTC price has jumped by more than 14% to the current $36,820 while the LTC price has jumped by more than 8%. Other digital currencies like Ethereum and Ripple prices have also jumped.
Cryptocurrencies are rising because of the ongoing hype in the market that has been fueled by interactions in platforms like Reddit and Discord. This hype has pushed risky financial assets like stocks and cryptocurrencies up sharply. Earlier today, I wrote about Dogecoin, a hyped currency whose price has jumped by more than 77% in the past 24 hours.
Litecoin, Ethereum, and Bitcoin prices are also rising in anticipation of the weekend when all traditional markets are usually closed. Investors believe that the ongoing hype will shift from stocks to these currencies because they are usually traded during the weekend. In fact, in the past few weeks, the prices of cryptocurrencies has jumped during the weekend.
Most importantly, Bitcoin price is soaring after receiving an endorsement by Elon Musk, the world’s richest man.
Turning to the four-hour chart, we see that the Litecoin price has managed to bounce back by about 20% since Wednesday this week. The price has managed to move above important the important resistance at $122. It is also at the 38.2% Fibonacci retracement level. Therefore, I suspect that the price will soar to the 23.6% retracement at $160 during the weekend. However, a drop below $122 will signal that there are still sellers in the market.
The four-hour chart shows that Bitcoin price has finally broken-out. In the past few days, it has remained inside the descending triangle pattern. Today, it moved above the upper side of the triangle sending signals that there is still demand for the currency. Therefore, while there are still substantial risks, there is a possibility that the price will jump to above $40,000 during the weekend.
