We’ve had a nice run up over the past week. Generally, the time before Christmas is met with strong stock markets and an overall bullish feeling, yielding to what is known as the ‘Christmas Rally’. That has not been the case this December, which will go down as one of the worst Decembers in history for US stocks – and the worse since the Great Depression. And as cryptos have come off the worst downturn in its history, its experienced a Christmas rally – but there are some key levels ahead to watch.

 

Bitcoin (BTCUSD)

 

We’ve moved up as much as +33.43% since the low back on December 15th, and we’ve continued to trudge higher. The current Gann arc (blue arc) remains the near term resistance and we’re seeing Bitcoin just ride up against the contour of that arc. We could expect to see a pullback here, at least a 50% retracement – but there is a persistence here that shouldn’t be ignored. Judging from the current 4-hour chart, we’re seeing an equal distribution of buyers and sellers up here, but there is some noticeable bearish divergence between both price and the Composite Index and the RSI and the Composite Index – indicating some possible downside pressure.

 

Ethereum (ETHUSD)

 

Ethereum has experienced a nice pop as well, regaining the key $100 value area. Its pattern in the current Gann Square of a Range has been very, very consistent with how it has been respecting particular angles and movement. It’s actually been a kind of nerd-out watching it move so precisely. That red vertical line is what I find most important on this screen. That red vertical line is called the 6/8th harmonic in time, and it acts as a natural pivot in time. What this means is that it acts as a source of resistance in time against the current trend in force – which is exactly what played out. The near-term area for Ethereum to get to for some major resistance is at the 1/8th Major Harmonic at 181.38.

 

Cardano (ADAUSD)

 

Cardano’s biggest move came Friday morning, with a 14% drive higher – but it’s shaved off nearly half of that move as I’ve been writing. Crazy amounts of volume have stepped in over the past week. Even though there is some short-term downside movement ahead, the fact that we’ve just launched a huge distance from the major downtrend angle is a good sign. If we play by the ‘rule’ that big momentum moves will often experience at least a 50% retracement before the next drive higher, then traders should see a deep retracement to the former downtrend line – which makes sense for two reasons. First, any time we see a break of a major trendline, we want to see a retracement back to that line to confirm the break – otherwise, it’s just a false move or a weak move (not always, but often it is). Second, the retracement back to that trendline would represent the 50% retracement.

 

Ox (ZRXBTC)

 

This is a chart I like to see: an important and major cryptocurrency whose performance is lagging against its peers. ZRXBTC has not experienced the same pump and drives higher as the majority of the altcoin market – so it may represent a great speculative long opportunity at these present levels. There are a few levels here which make me kind of excited for this move higher. On December 27th, we see the beginning of a new 192-day Law of Vibration time cycle – but we also see that right in front of us is the final Gann arc (blue arc) and the 1×4 Gann angle (blue angle). This entire zone could be a big launching point.