Shiba Inu Coin (SHIB) is looking strong! Last week, I wrote about the Cryptocurrencies forming a base. Bitcoin and Ethereum were retesting major resistance zones. While XRP, Litecoin, Bitcoin Cash and many others were forming range patterns.
Bitcoin has closed above our 40k resistance zone. This is now support. We could pullback to retest before continuing higher to the 50k zone.
Ethereum, similar set up to Bitcoin, and ETH took out the 2800 zone. This is now the new support. A pullback could be next, before a run to $3600.
Was there any news on this? Zerohedge put out a headline regarding Mexico’s third richest man. “Crypto Spikes As Mexican Billionaire Says Bitcoin Is A ‘Better Option Than Fiat Money“, was the headline.
However, it seems a short squeeze was the main factor:
Technically speaking, there is a large $730 million options expiration with bitcoin bulls placed heavy bets between $40,000 and $44,000… which may suggest this price action is gamma-driven pinning.
XRP was my pick for the crypto trade just because it met my trading criteria. Readers, and members of our Discord group were given the heads up right on the breakout. My XRP article predicting the current move on technicals can be read here. Our job is very simple. Look for the same set ups and repeat trade them over and over again. Something which I hope regular readers are seeing with my many Market Moment posts.
The trigger for us was the breakout candle on February 4th 2022. We all had a good Sunday evening, and woke up to a nice Monday morning. My longs on the CFD side printed on this 19% move. There is resistance here at the $0.80, which was my first target. A pullback and then a higher low swing taking us above and to the $1.00 zone is next.
For those that missed out on XRP, Shiba Inu (SHIB) has something that looks very similar. The market structure looks identical. A downtrend, and then a range, with a breakout confirming a new uptrend.
The breakout was confirmed on yesterday’s close (remember: crypto markets are open on the weekend!). Shiba Inu is up 41.27% in the last 24 hours.
I would love to see a pullback before entering. Perhaps back down to the $0.000025 zone, just to see buyers enter and confirm a higher low swing taking us up to the $0.000040 zone.
Another confluence here is the trendline breakout, but I put more emphasis on the structure. The range breakout after a long downtrend is what gets me excited.
It looks like a new crypto uptrend is beginning. There was some fear of Biden’s executive orders on crypto’s, but the positive thing is that regulations would be bullish. Why? Because Wall Street and other larger firms could trade and hold more freely because there would now be depositor insurance.