Cryptocurrencies are the best performing asset class on Tuesday. There is no clear, crypto-related reason behind today's rally and therefore it can be reasoned with an overall improvement in risk moods as well as weakening of the US dollar. Bitcoin trades 6% higher on the day and returns above the $20,000 mark. Ethereum adds around 5.5% while Ripple trades almost 2.5% higher. NEO and UNISWAP are top performers with each gaining around 15% at press time.
Taking a look at the BITCOIN chart at the H4 interval, we can see that the coin climbed to the highest level since September 15, 2022. Bitcoin price broke above the 50-session moving average yesterday (green line), that acted as the resistance in recent days (orange circles). Upward movement accelerated following a break above this moving average and the coin broke above the 200-session moving average ahead of the European open today. Price also broke above a psychological $20,000 handle but the rally lost momentum later on. The upward move has a lot of room to extend until the downtrend is snapped with the upper limit of market geometry sitting at around $22,400, or around 11% above the current market price. However, price zone marked with 38.2% and 50% retracement of a downward move started in mid-August.
Source: xStation5
