– Bitcoin maintains a tight trading range as it continues to move closer to the bottom of the daily cloud.
– Cardano (ADA), QTUM (QTUM) and other altcoins experience big gains.
Bitcoin maintains tight trading range
A scenario that I discussed yesterday is playing out today. Bitcoin has drifted into the Kumo/Cloud and has remained inside the cloud for (so far) the entire trading session. We may even see a close for the day that is higher than yesterday’s, albeit a small rise higher. The close for January 8th, 2018 was at 3993.85 and if we were to close at the present value area, we could see a close just above at 4009.74. If we consider the December 2018 opening price of 3944.69 to hold as support along with the bottom of the cloud, we could see enough pressure to push price above the current downtrend line and then up towards the December 2018 high at 4277. There is current to much resistance and to much support holding Bitcoin at its current trading range. But a significant amount of altcoins have seen some big rises over the trading day.
Cardano has just been on a major bull run since price first pulled above the Kumo on December 29th, 2018. And that move increased when the Lagging Span finally broke above the cloud as well. The chart above shows the price history for ADA from the cryptocurrency exchange, Binance. While not as long as Bitcoin’s last bullish breakout criteria, Cardano has not had a daily bullish breakout condition met since December 17th, 2017. And right now, we finally have that condition. While I do see significantly more upside potential here for Cardano, I did take some off the table and pocketed some profit because of the 6/8th inner harmonic pivot at 0.00001308, which is alright right against a Gann arc. Now, there is enough bias to push this pair higher, but I don’t want to take the chance – I’d rather get some guaranteed profit and buy in a little higher if I need to (or lower!).
QTUM (pronounced Quantum) has a working relationship with Amazon in China, so it has some actual clients – and you can’t go wrong with Amazon being a partner. Just as with Bitcoin and Cardano, QTUM has not had a bullish breakout on the daily Ichimoku chart for a while – since November of 2017. Price has formed a very nice base after trading in a tight range for the past 90-trading days. 90-days is one of the very important Gann day counts. Actually, 90-days is the most important inner year day cycle in Gann’s work, so its not very surprising that after 90-days in this congested trading range we are just a hair from seeing a bullish Ichimoku breakout condition on QTUM’s daily chart. I think even if we close where we’re at, we move up and above the most recent swing high of 0.000727 on December 24th, 2018.