Bitcoin (BTC) has made a remarkable run so far, particularly from September, where it surged from $10,500 to $18,400. A 75% rally in less than three months is a milestone achievement and 400% gained since March made it, the best performing asset of 2020. Bitcoin has been getting so much media and celebrity attention recently.

Fig.1.Bitcoin: 75% gain made from September till date

Source: Paid Content by Peter Brendt and his partners at bitcoin.live

Bitcoin price has successfully held the $17.2k support level, putting its all-time high achievable. It has already broken its all-time high market cap,even with less than 10% beneath its $20k mark.

The daily chart shows, the current rally is likely sustainable, but with 60 cycle high without a retracement and 10 week MA now extreme, we need to be careful. This might trigger investors taking some profits off the table. We need to bring our stop loss to 17k as we’re going to see a decent pull back. We have had the longest time of not having up to 35% pull back in BTC history.

Fig.2. Bitcoin: Stop loss to $17k, most ideal at the moment. Source: bitcoin.live

As we’re closer to all time high, with two candles left, we need to be careful here as 30% decline is possible.30% decline is the price of BTC as at 2 weeks ago.

When we take a look at the weekly chart, we have had 7 green candles in a row, which is quite rare. It shows that, a pullback is imminent.

There are two key price levels to watch if BTC is to have a correction before reaching $20k mark. The two key price levels can be found at $16k and $13.5k. Let us keep our eyes on these two key levels.

Fig.3. Bitcoin: Seven green candles in row, very rare. Source: bitcoin.live

Ethereum
I’m not encouraged with what is playing-out here as the key Altcoins indicator-Ethereum is in a declining moment as we cannot pick a bottom.
What I can see from the chart is the higher high getting lower. We need to find a bottom before we say, this is the direction Ethereum is moving. We can’t pick a bottom in a declining moment like this. We need to find a bottom for any possible reversal to form and that’s when we can have, a strong bull market.

Fig.4. Ethereum: The green lines showing higher high getting lower. Source: bitcoin.live

Looking at ETH daily chart from September –to- date, you will see a very significant sell off. The overall decline from that period till now is 35%. All the Altcoins seem to toll the same line.

Fig.5. Ethereum: 35% decline from September till date. Source: bitcoin.live

With BTC in the driving seat, Ethereum will most likely play a catch-up.

The key indicator to watch is the formation of a bottom, probably looking at the first quarter of 2021. Once this happens, there will be an impulse move and Ethereum will be a monster of trade in the bull market. For now, it’s still downtrend all the way.

Top Takeaways
BTC – New Cycle Highs. BULL MOVE.
ETH – Downtrend wait for lows.

🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service


🔴This Market Update is created using Paid Content by Peter Brendt and his partners at Bitcoin.live. Peter Brendt is a Trader since 1975. Author and publisher of the Factor Report as well as Best Selling Trading Books. If you want to read full content by him and his partners, trading signals/calls in real time, daily/weekly/monthly reports, trading videos and podcasts, trading tips check out his VIP Subscription Service