Crypto Frontline

BTCUSD (Coinbase)

Bitcoin momentum shows no sign of abating and now the price action is hovering close to the $100k mark. That’s not just a key psychological area, but also a place where buyers are likely to take some profits.

If the market manages to exceed that, our attention will shift to $105k and $110k. Be aware we are now in uncharted territory and spotting resistance levels is more challenging. Although the trend is likely to remain intact by the end of 2024, that does not rule out pullbacks.

After all, it’s something natural and it provides buyers with opportunities to enter the market at affordable prices. So, we would like to see BTC retracing towards $93.5k, which coincides with the bottom line of a short-term ascending channel.

Breaking below that could be bearish and suggest further selling towards the $86k area of support. As long as the price continues to trade above the 4h chart 200 SMA, we remain bullish and expect the buyers to enter on dips. Up to this point, there is no reason suggesting the market is poised for a deep correction and seasonality acts as a major tailwind.

ETHUSD (Kraken)

Ether pulled back to the daily 20 EMA and then started a rebound. The coin is underperforming BTC and it seems like traders are shifting their attention to cheaper altcoins. As a result, we think there is greater upside potential here, as long as there won’t be any new risk factors denting the bullish trend.

The next likely target is $3,560 and after that, the falling trend line kicks in at $3,600. That should be noted since ETH has been trading below it for most of this year. Clearing the trend line would be a positive development and will unlock further upside towards $4,000.

We think Ether can reach that area by the end of 2024 since the risk sentiment is hard to reverse as things stand right now. We might see a deeper pullback at the beginning of next year, but until then, we don’t recommend shorting this market. Pullbacks to the 20 EMA should act as buying opportunities.

TRXUSD (Bitfinex)

Tron is another example of altcoin starting to outperform Bitcoin. This one has been in an uptrend for months but during the last two weeks, we’ve seen an acceleration higher. Looking at the bigger picture, the coin has been in an ascending channel since 2018 and given we are approaching the upper line, traders should be on notice.

The resistance zone kicks in around 24-25 cents, so there is some upside left to exploit. The main advantage of TRX is the cheap price, which favors smaller traders and investors.

As the rotation out of Bitcoin into altcoins continues, we should see more gains and the price trending above the daily 20 EMA. The first area of support is 19 cents and we think buyers will step in there aggressively. Currently, the RSI is only slightly above the 70 mark, meaning conditions are not extremely overbought.