Crypto Price Analysis: 5 Altcoins to Watch This Week
Bitcoin’s steep rise last week has pushed many altcoins to the point of capitulation. Some were driven beyond their 2018 bottoms and recorded new bear market lows. This happened because the altcoin bagholders dumped their holdings in favor of bitcoin. The good news is that the leading crypto appears to be consolidating. The consolidation benefits other cryptocurrencies, especially those that are now trading in extreme oversold conditions. Thus, this week, we continue to look at coins against their BTC pairs. Here are the five altcoins to watch this week.
It’s do or die time for Ethereum. It either bounces now at support of 0.025 or it goes into oblivion. The second largest crypto has touched the support for the third time and in theory, this demand area should be drained.
Therefore, if the bulls are going to make a move, they should do so now. With bitcoin correcting, they have a window of opportunity to pump the cryptocurrency to the range high of 0.035. So far, the price action over the last few days has been reassuring.
Buy close to support of 0.025 and keep your stops tight. Target is 0.035.
ChainLink is on a league of its own as it does not rely on Bitcoin’s price action to determine its value. Hopefully, this is something that we will see in all altcoins but for now, we can take advantage of ChainLink’s strength.
A quick look at the daily chart shows that the market went into overdrive after climbing as high as 0.0003877 on June 29, 2019. Now that it is losing steam, the smart move would be to wait for it to retest the former resistance of 0.000228 as support. With the crypto trading in extreme overbought conditions on the daily RSI, we are confident that it will significantly correct before resuming its uptrend.
NEM is one of those crypto tokens that has been severely battered but bulls appear to be holding their ground.
The daily chart tells us that the cryptocurrency has created a double bottom pattern at support of 0.0000075. The same pattern can also be seen in the daily RSI. If this support holds, NEM is very likely to skyrocket to resistance of 0.0000126.
Bitcoin Gold (BTG/BTC)
Bitcoin Gold has recently recorded fresh historic lows on Binance when it dropped to 0.002247 on June 29th. Nevertheless, bulls quickly responded and lifted the Bitcoin fork above our line in the sand of 0.00234.
What we want to see is for the bulls to cement 0.00234 as a strong support. Fortunately for the bulls, the market is trading in oversold conditions. This should provide some selling relief that can help them stay above 0.00234 and rally to the current range high of 0.0035.
The final pick for this week is the popular Dogecoin. The crypto token has come all the way down to convert former resistance of 0.00000027 into support.
A look at the daily chart shows that Dogecoin may be carving a bottom at support of 0.00000027. The cryptocurrency generated a double bottom pattern on the daily RSI. On top of that, we can see a bullish divergence on the same technical indicator.
If you want to long the market, buy as close to 0.00000027 as possible with very tight stops. Targets are 0.00000035 and 0.00000044.
It may look very risky to trade cryptocurrencies against bitcoin due to the prevailing bearish sentiments. However, many have been badly beaten and they are likely at the point of maximum financial opportunity. Keep in mind, altcoins have the tendency to erase losses in a matter of days or weeks. This is one of the things we expect heading into a fresh trading week.
Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.