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    Crypto index analysis: preparing to rally towards 70,000

    By Nathan Batchelor

    13:42, 16 September 2020

    Crypto index analysis

    The Crypto index has recovered towards a two-week trading high, as Bitcoin and a number of top coins start to erase losses from the early month sell-off in the cryptocurrency market.

    Crypto index analysis shows that a bullish reversal pattern is pointing to a recovery towards the 70,000 level.

    Crypto index medium-term price trend

    The crypto index has started to recover towards the 55,000 level, as bullish momentum spreads through the cryptocurrency market.

    Technical analysis shows that the bulls are now attempting to move the index above its key 200-day moving average, which is around the 60,000 level.

    Crypto index technical analysis over the medium term shows that a large broadening wedge pattern has recently formed.

    Broadening wedge patterns are amongst the most powerful breakout patterns. They are characterized by periods of range bound trading activity, followed by explosive breakouts.

    The wedge pattern is located between the 48,000 and 72,000 level. Price stabilization above the index’s 200-day moving average should encourage a rally towards the top of the wedge pattern.

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    ETH/USD

    3,189.40 Price
    -0.090% 1D Chg, %
    Long position overnight fee -0.0616%
    Short position overnight fee 0.0137%
    Overnight fee time 21:00 (UTC)
    Spread 6.00

    US100

    17,194.20 Price
    -0.080% 1D Chg, %
    Long position overnight fee -0.0262%
    Short position overnight fee 0.0040%
    Overnight fee time 21:00 (UTC)
    Spread 1.8

    XRP/USD

    0.56 Price
    -2.560% 1D Chg, %
    Long position overnight fee -0.0753%
    Short position overnight fee 0.0069%
    Overnight fee time 21:00 (UTC)
    Spread 0.01168

    Gold

    2,302.91 Price
    -1.030% 1D Chg, %
    Long position overnight fee -0.0198%
    Short position overnight fee 0.0116%
    Overnight fee time 21:00 (UTC)
    Spread 0.40

    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 55,000 level.

    The one-hour time frame shows that a bullish inverted head-and-shoulders pattern will form if the price reaches the 57,000 level.

    According to the size of the bullish price pattern, the crypto index could rally towards 70,000 over the short-term.

    Watch out for a coming breakout rally in the crypto index if bulls can anchor the price above the 57,000 level.

    Crypto index technical summary

    Crypto index technical analysis highlights that bulls need to maintain the price above the 57,000 level to encourage a rally towards the 70,000 area.

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