Crypto Index analysis: cautiously bullish
17:00, 17 August 2020
The Crypto Index is once again attempting to break higher as Bitcoin and Ethereum lead the charge amongst the top coins.
Crypto Index analysis shows that a bullish triangle pattern breakout is targeting the 78,000 level.
Crypto Index medium-term price trend
The Crypto Index looks set to challenge towards it’s all-time trading high, as bullish momentum from a host of top coins drives the cryptocurrency market higher.
Ongoing technical breakouts in Bitcoin and Ethereum has also been extremely beneficial for the Crypto Index.
Crypto Index technical analysis over the medium term shows that a bullish triangle pattern breakout has taken place.
The overall size of the triangle pattern breakout is projecting an eventual rally towards the 78,000 level.
Traders should note that the ongoing triangle breakout remains valid while the price trades above the 61,000 level.
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Crypto Index short-term price trend
Crypto Index analysis highlights that the index has a bullish short-term trading bias while the price trades above the 61,000 level.
The four-hour time frame shows that a bullish inverted head and shoulder pattern will form if the price reaches the 64,00 level.
According to the size of the bullish price pattern, the Crypto Index could stage a 7,000 point upside move if price moves above the 64,000 level.
Traders should note that bearish RSI price divergence on the lower time frames is warning that the index could see a significant drop towards the 48,000 area.
Crypto Index technical summary
Crypto Index technical analysis indicates that a major upside breakout is underway. A move above the 64,000 level should help encourage further technical buying.