If we look at grandpa BTC , it currently resembles very much XRP back in September last year: We can definitely see the Ascending Triangle that both have shaped. But still, there are key differences that I'd like to point to you at in this analysis:
XRP September 2018
- Ripple got saved from breaking the summer lows at 25 cents from strong hands
- Those strong hands pumped the price until 80 cents -almost 3xed the price in 3 days
- I highly doubt that this was a mere market reaction at that critical price level
- At 80 Cents, we saw huge profit taking: just look at the ugly wick that occurred there
- The Price collapsed 25% after this wick
- After breaking the , the price collapsed another 20%, underlining the the pump & dump scheme
Altogether it was a very short-lived price action: The company could not convince the market participants that XRP tokens would eventually be used in concepts like xRapid, and this is what the market showed as reaction. Only recently we got saved yet again from this critical 25 cents of summer lows, through the strength of BTC & the general correlation, that dragged XRP higher together with the whole crypto market.
BTC May 2019
- We have institutionals like Bakkt & Fidelity preparing for launch, not just some minor strong hands as in Ripple's case
- We have had the Bitfinex FUD & Binance Hack, which in the latter case could have led the company/CZ to buy some Bitcoin for the exchange holdings
- We have not 3xed in 3 days, instead only doubled over the course of a few months since breaking the $4k resistance: this is much healthier
- We definitely had short squeezes around the $6k resistance wall => Shorts have to cover their position by going 'long' ( -1 +1 = 0)
- On top we had HODLers FOMOing in, who had been absent from the market for months.
Altogether the recent rallied has surprised HODLers and analysts alike, as all of us were awaiting the $6k to hold as strong resistance, since it was holding up throughout 2018 as strong support (S&R zone). Grandpa BTC is extremely strong right now, and it could definitely break this to the upside, which would signal in first $9k and ultimately the magic 5-figures again: $10k. This would give you 10% and 20% profits respectively. So if you're a usually an XRP HODLer/trader, it might make sense for you to take a closer look at grandpa BTC again, which is the horse that the institutional players are betting on.
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