Hello traders! The cryptocurrency market is on Fire, with the Bitcoin price continues to rise, altcoins might outperform the BTC growth in the coming days and weeks. Particularly we’ll look into the price action of Tezos against the Bitcoin and try to understand the upside potential.
The most important factor is the clear rejection of the 461.8% Fibonacci retracement level at 0.0001848. The Fibs was applied to the small pullback after the price broke below the massive support area at 0.0002470. Along with the Fibonacci, XTZ/BTC rejected the support trendline and then broke above the downtrend trendline. While the price could have started to rise immediately as most probably expected, Tezos initiated the consolidation phase.
On the small correction down, it found the support near 0.0001937. XTZ attempted to break below, but only produced a spike lower. Fibonacci was applied to this corrective move down, which shos taht 2272% Fibs exactly corresponds to the previous area of support at 0.0002470. Also, the previous support is confirmed by 61.8% Fibs and could be the potential upside target if the uptrend will start. And besides, the 0.0002470 resistance corresponds to 200 Exponential Moving Average and could play a key role in further price development if/when reached. Overall, the XTZ/BTC is extremely bullish but only as long as daily closing prices will remain above the 0.0001848 support.
Bias: Strongly bullish while above 0.0001848
Potential Support Zone: 0.0001848 – 0.0001937
Potential Targets: 0.0002470
Have a profitable trading!