Crypto Price Analysis: 5 Altcoins to Watch This Week
Four out of the five altcoins on last week’s list traded within our expectations. Litecoin (LTC/BTC) led the way as it rallied from the bull flag support and it is now threatening to break out of the pattern. It is followed by Bitcoin Cash (BCH/BTC), which has successfully generated a higher low set up while the smart money continues to accumulate. On the other hand, TRON (TRX/BTC) and Cardano (ADA/BTC) may be showing signs of weakness but they are keeping their heads above water.
Only OmiseGo (OMG/BTC) disappointed as it moved below a key support area.
As Bitcoin (BTC/USD) remains stuck in range trading, we look at altcoins that have shown signs of strength. Here are the five altcoins to watch this week.
Binance Coin (BNB/BTC)
Binance Coin shocked many crypto investors after igniting a monster rally at the turn of 2019 to record a new all-time high of 0.0030997 on March 3. However, the market is flashing signs of exhaustion. We can see a bearish divergence on the daily RSI. On top of that, volume has been on a steady decline while the price rose. With momentum and volume waning, Binance Coin is ripe for a pullback.
Daily chart of BNB/BTC
The initial area of interest is 0.0026. If it holds, Binance Coin will likely bounce back to 0.0036. Watch 0.0026 closely because a break below this level might drive the market down to 0.002.
EOS has been correcting after climbing as high as 0.00107 on February 24. The market price is currently diving slightly below support of 0.000088. If it manages to recover this level, then we can expect fireworks to resume. On the other hand, a significant move even lower below this support might drive the market down to 0.00813.
Fortunately for bulls, we should be expecting a golden cross between the 50-day moving average and the 200-day moving average. This gives us reason to believe that the dump might be nothing more than a shakeout.
Ethereum Classic (ETC/BTC)
Ethereum Classic is a surprise addition to our list this week. We completely lost interest in the coin when it broke below support of 0.0015 in November 2018. Nevertheless, it is now showing signs of recovery. Ethereum Classic is in a great position to break out of a symmetrical triangle pattern on the daily chart.
Daily chart of ETC/BTC
The safe way to trade this setup is to wait for the market to take out 0.0012 and retest it as support. On the other hand, should Ethereum Classic dump, it will likely dump deep and record new lows on Binance.
CyberMiles appears to be following the footsteps of Ethereum Classic. It is also printing a symmetrical triangle as the trading range narrows. So far, it looks like the market is due for one more leg down to 0.00000675 before it can break out of the triangle.
Daily chart of CMT/BTC
Should CyberMiles break out of this pattern, it is likely to rally to 0.00001. Otherwise, a breakdown here will force the market to fight for its existence.
Aeternity is finally starting to show signs of bullishness. It appears to have established a bullish higher low of 0.000106. Bulls are now using this support to mount an attack on resistance of 0.00001465.
Daily chart of AE/BTC
0.000106 is likely to hold because volume started to come to life when the market dropped to this level. On top of that, there’s a possibility of a golden cross between the 50-day MA and the 200-day MA. These signals affirm our view that bulls are gunning for 0.0001465.
While Bitcoin trades in a tight range, altcoins are exploiting this window to pump. Coins like Binance Coin and EOS may be retracing but they still look strong. On the other hand, Ethereum Classic, CyberMiles, and Aeternity are starting to show signs of life. Have fun trading!
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.