Bitcoin made an impulsive move to the upside on Friday. It is important to note the large volume on which the strong uptick took place. In general, high volumes could be used as an indication that the market is set to extend the initial move.
After rallying big a couple of days ago, the benchmark cryptocurrency is currently consolidating above 3560. We anticipate a second wave to violate the 3780 resistance. This will attract even more buyers which will quickly take bitcoin to the 4100-4200 area.
For this bullish scenario to prevail, it is key that the instrument keeps on trading above the solid 3320 support. Failure to do so, will change the outlook back to negative and will just reinstate the long-term downtrend of this market.
The buying spree in the last working day of the week took ripple all the way to an intraday high of 0.3143. The big move was confirmed by large traded volume, which hints about its lasting nature.
The only negative thing that can be clearly spotted on the chart is that the advance was confined below the important from technical perspective 0.3140 resistance. For the rally to continue, XRP needs to make a clear break through the latter. Otherwise, there is a risk of a protracted range-bound trading.
Once we see a violation of 0.3140, ripple would be set for another leg higher, thus targeting 0.3830. Success there will take the cryptocurrency to the key 0.4526 resistance for an initial test.
In line with the general markedly positive mood on the market, ethereum also made a solid rally on Friday, which took it to a local high of 120.81. The cryptocurrency managed to break even higher in the next couple of days, touching 124. This sharp move was made on the back of a serious uptick in volume, as it can be clearly seen from the bars in the bottom of the chart.
Although a slight correction cannot be ruled out at this point, we expect ethereum to challenge 131.50 in the short-term. In case of a pull-back, downside should be limited by the 114 support. An eventual violation of 131.50 will set ethereum for a more massive rally targeting the crucial 161 resistance, where we will potentially witness some profit taking.
Among the top 20 cryptocurrencies, litecoin was the one that made the biggest rally last Friday. The news about its partnership with Beam, which would eventually result in the implementation of the Mimblewimble protocol, resulted in the impressive intraday gain of 26.5%. This sharp move, confirmed by a large uptick in traded volumes, brought litecoin to a daily high of 44.25. The digital currency advanced even further during the weekend, touching 46.80.
On its way up, litecoin violated the resistance at 42. The latter should provide a reliable cap and limit the downside for now. Our expectations are for the cryptocurrency to make another leg higher. Next target is 57, where a temporarily pause to the rally could be witnessed.