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Cryptocurrencies Bouncing

As posted two days ago in Monthly Bitcoin Price Bubble Popping: Wake Me Up When 2018 Ends! we proposed:

Short term the Bitcoin price seems oversold and may soon develop a relief rally that traders may want to exploit but that is possibly a premature decision for long term investment.

Just today cryptocurrencies confirm our expectation by breaking out from a short term bottoming phase as exemplified on the Bitcoin 4-hour price chart:


Price Targets

Although it remains to be seen if this price reversal will be sustained the initial upside price targets are not overly ambitious since we expect for the declining 7-Period moving average (purple line) to cap and reject the price lower as shown for the three cryptocurrencies with the largest market capitalization here  below.

In case of Bitcoin it should happen in the $7,400 area:

For Ethereum the resistance level sits just below $600:


And in case of Ripple there is a sturdy ceiling made of the conjunction of the 7-period moving average with the long term broken support and now turned into resistance at the $0.62 level:


To this review we also want to add Verge for which we suggested not later than yesterday the possibility that it had already forged a bottom. Verge sees the price target of its potential short term bounce just above the USDT 0.4 level:

Conclusion

In a forceful bear market we expect the short term bounce happening throughout the crypto space to fail initially at the most proximate resistance level as highlighted in the article charts.

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