Since the beginning of the year, Bitcoin has risen about 41%, and on February 5, it has sparked investor excitement as the price surpassed the $ 9,500 resistance level and rose to a new yearly high of $ 9,777.
Amid Bitcoin's strong reversal trend from its 2019 bottom at $ 6,400, there is an increasing number of altcoins that have overshadowed the recent rise of Bitcoin. For example, Tezos has so far risen 205% from its October low of $ 0.728.
When Bitcoin increased by 6.14%, XTZ increased by 15.76% to reach a 19-month high of $ 2.24. In addition to the recent bull market trend that is driving many altcoins to generate double-digit returns, a large number of exchanges are now offering rewards to XTZ-holding investors.
This week Binance also announced that they have added XTZ / USDT permanent contracts, like AZCoin News have reported. The new trading option will allow traders to choose up to 50x leverage on their XTZ / USDT positions.
Daily chart of XTZ USD. Source: TradingView
After surpassing the $ 1.15 resistance level and the 200-day moving average (MA) on November 6, 2019, XTZ closed with a strong rally for months, taking the price from $ 0.02. shouting to the high of $ 1.86. Since forming a local bottom at $ 1.25 on January 2, XTZ has increased by 80.29%.
6-hour chart of XTZ. Source: TradingView
At the time of writing, the XTZ / USD pair is still rising sharply (more than 3%) as traders maintain their buying volumes and the relative strength index (RSI) continues to push deeper into the overbought area but at the end. The same pullback must occur.
When this happens, traders may just need to follow the Fibonacci and VPVR retracements because the current structure fits well with both indicators.
Tezos can return to the 23.6% Fib retracement level at $ 2,011 and below it to $ 1,912. Traders can see the pullback price of the Fib 50% retracement at $ 1,739 where the price history shows stronger support and a large volume node on the VPVR.
Below this support, traders can see a golden pocket bounce between $ 1,633 and $ 1,574 (Fib 61.8% and 65% retracement levels). In the unlikely event, the 200-DMA will most likely act as a strong support.
Meanwhile, traders should pay attention to the trading volume in shorter time frames, and watch to see if the RSI starts falling from the overbought area or the MACD indicator starts to curve downward towards the line. signal.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Annie
Bitcoin Magazine | Cointelegraph
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