Tezos Vs. Bitcoin
I was asked to look at the XTZ/BTC pair...
Overall, I would say this formation has a Bullish lean. There is clearly a tightening symmetrical triangle on the 3-day chart. The price action has remained above the 200-day moving average since it broke below earlier this year. Now the price has broken above the 50-day moving average, is holding above, and continues to generate momentum upwards. I would watch the 50-day moving average closely. If that average is broken, it will be time to reassess.
However, I will point out that I have seen triangle formations like this break out to the downside. You have to notice that there have been a series of higher lows as upper resistance on the symmetrical triangle*. If BTC buyers flood the market and BTC becomes majorly bullish breaking out of its long term triangle, it may be the asset you want to be in.
The RSI also looks to break above an upper line of resistance. It could break above to set up new support, or it could get rejected by the resistance. I'd keep an eye there as well.
I would like to be properly positioned in both trades, personally. If we're in a new Alt season, you definitely do not want to miss that trade. Trust me.
As always, calculate the odds, set your stops, & DYOR.
*Doesn't necessarily mean it's a bearish set-up
Overall, I would say this formation has a Bullish lean. There is clearly a tightening symmetrical triangle on the 3-day chart. The price action has remained above the 200-day moving average since it broke below earlier this year. Now the price has broken above the 50-day moving average, is holding above, and continues to generate momentum upwards. I would watch the 50-day moving average closely. If that average is broken, it will be time to reassess.
However, I will point out that I have seen triangle formations like this break out to the downside. You have to notice that there have been a series of higher lows as upper resistance on the symmetrical triangle*. If BTC buyers flood the market and BTC becomes majorly bullish breaking out of its long term triangle, it may be the asset you want to be in.
The RSI also looks to break above an upper line of resistance. It could break above to set up new support, or it could get rejected by the resistance. I'd keep an eye there as well.
I would like to be properly positioned in both trades, personally. If we're in a new Alt season, you definitely do not want to miss that trade. Trust me.
As always, calculate the odds, set your stops, & DYOR.
*Doesn't necessarily mean it's a bearish set-up
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