Since the start of the week, most of the largest digital currencies have broken out from their broad declining trends, as the total value of the segment is now more than 50% above the level around the correction low. Some of the major coins also confirmed new short-term uptrends. In this review, we’ll have a look at the performance three major cryptocurrencies.
BTC/USD Chart Analysis
The broad picture of the whole market is still looking positive, with only Bitcoin’s weakness causing headaches for crypto bulls, as the most valuable coin is hovering close to declining trendline that dominated trading throughout the first quarter of the year.
Huge resistance is still just ahead between $9000-$9200, with further levels at $10,000 and $11,300, while support is found near $8400, $7650, and in the $6150-$6250 zone. We have already tried 3 times to go through that zone of confluence resistance, but 3 times have the bears rejected the bulls.
It seems there are possibilities for more bullish trends. We can obviously predict that the Bulls want to make that 5th wave extension to around $9,400+. Even though the RSI is almost overbought, the ascending wedge still indicates a bearish pattern, which normally predicts a downward trend pattern. Under normal circumstances, we would go down from here.
With the EW-structure finishing with huge extensions on the 3rd and 5th wave, high RSI, MACD showing signs of the becoming weaker, and having very strong resistance above. The next target would probably be around 8,5oo to 8,400 USD, which probably would be the end of the first Wave.
Since a clear-cut direction cannot be fully guaranteed, for now, we advise no positions should be entered yet, except for the professional traders. Also, leveraging in this kind of market condition can be extremely risky. We, therefore, advise not to leverage in this market condition.
However, despite the short-term weakness, BTC is still among the stronger majors from a long-term perspective, and with the secular uptrend clearly being intact, long-term investors should hold on to their coins and add to their holdings on the short-term pullbacks.
ETH/USD Chart Analysis
Ethereum built upon its recent relative strength, the coin broke out convincingly above the declining trendline, and reached the next key resistance zone between $625 and $640 before the momentum of the move stalled. We expect a downward trend movement. But, considering the volatility of the crypto-market, if it breaks above that zone it will be very bullish indeed.
While there are still several strong zones ahead, with the closest ones near $725 and $845, barring a quick move back below the declining trendline, it is expected to continue the advance.
With the long-term MACD still just in neutral territory, long-term investors could add to their holdings during short-term corrections, with key support levels at $500, $450, and $400. If you are still long, this is a good area to take some money off the table and throw a stop on the rest to lock in profits. We advise being very careful at this point, as it may be a region of no trading.
To be clear, we aren't just looking for it to move sideways to trigger a short position, we need some red candles to confirm it's going to start moving down where it “breaks” the trendline, and it doesn't just saunter by it. We will have to see how the sideways movement forms to determine if it's a bull flag, or simply getting ready for a lower move.
BCH/BTC Chart Analysis
Considering the recent trend that led to more than 10% increase in 24 hours experienced last week, leading to a whopping 37% increase in the last 7days, many fundamental indicators such as the recent Us taxpayer season have been attributed to the recent bullish trend of the coin against the BTC.
While many traders recoiled in fear as the cryptocurrency crash of the Q1 of this year drove down prices, the smart money was waiting on the sidelines for cheap prices on high performing markets. After watching BCH plummet by roughly 75% during the early months of 2018, many large buyers evidently began to accumulate.
From the initial break out pattern that also coincided with a falling wedge pattern, the BCH/BTC markets recently broke above, and then bounced off a broken a major descending trendline, signaling that trading BCH’s over the BTC may continue in the short term which shows a consecutive break out patterns on the smaller time frames that have provided opportunity to accumulate. The BCH/BTC markets are also testing the 23.6% Fibonacci retracement area when measuring from the major resistance area of 0.25 BTC.