Crypto Market Commentary – Bubblicious? – 03/01/17
The crypto markets are buzzing today. Once again, Dash is the outperformer, as I suggested during the breakout two weeks ago in my post, “Crypto Commentary – Altcoin Breakout – Bitcoin Dominance in Jeopardy – 02/15/17”.
A pullback in DASHUSD could come at any moment. Dash appears to be in bubble territory, where overbought technical indicators such as the RSI don't matter. This most likely will come to a halt sometime within the next couple of months. Where will it land? Nobody knows but I don't think $100 would be out of the question. We shall see. I will monitor the situation and give my best guess on when the rally has ended. These types of moves don't happen very often but when they do, they happen very quickly.
BTCUSD is pushing higher as well, along with the rising tide. BTCUSD is approaching the long-term upper trend line again, for the fourth time. A break above this could indicate a mania phase is imminent. A strong rejection off this line could indicate more consolidation. This longer-term trend has a long way to go before changing to bearish. Prices need to move below the lower trend line and below the 200 dma to change the long-term trend to bearish. Right now, this level is around 770, about 47% below current prices. Of course, this is bitcoin. Anything can happen, so I wouldn't rule out a sudden collapse below those levels.
ETHUSD is also in rally mode and breaking above long-term resistance near $15. The last bit of resistance for this pair is the all-time-high around $20. A break above this level could send ethereum off to the races.
Could crypto enter bubble mode this spring? Possibly, but these things are extremely difficult to predict so It’s definitely not a good idea to get your hopes up if you own digital currency. If the trend roles over, then the bubble won’t happen. However, the charts look primed in my opinion. Remember: the trend is your friend.
Disclaimer: This is not advice of any kind
For some reason I can't touch DASH
Frank