Crypto Update: 5 Altcoins to Watch This Week
Just as it appeared that the crypto market was finally finding its footing, Bitcoin (BTC/USD) suddenly crashed hard last week. The bearish price action made a lot of investors jittery. Consequently, many participants either took profits or cut their losses on their altcoins positions. This drove numerous altcoins back to their support areas.
Last week’s price drop was a gentle reminder that we are still in a bear market. That’s why this week, we look at coins that are showing signs of strength while trading near firm support levels. Here are the five altcoins to watch this week.
Ethereum corrected right after tapping the 200-day moving average. At that point, the market was showing signs of bullish exhaustion. You can see a bearish divergence on the daily RSI. Plus, volume was weakening while the price kept rising. Those who saw the writings on the wall managed to take profits at the top.
Daily chart of ETH/BTC
The good news is that Ethereum has an opportunity to keep its bullish momentum intact. Defending support of 0.03157 would enable the market to establish a bullish higher low setup. Bulls have a very good chance to preserve the support because both the 50-day MA and the 100-day MA are crawling around that level. They will act as additional support levels to help Ethereum stay above 0.03157.
Should bulls fail to defend 0.03157, the market’s sentiment will likely turn from slightly bullish to neutral. We can then expect Ethereum to drop back down to 0.026746.
Binance Coin (BNB/BTC)
Binance Coin refuses to follow the footsteps of Bitcoin. Even though its market structure closely resembled that of Bitcoin’s, the results were different. After apparently breaking down from a descending triangle in November 2018, Binance Coin rose from the dead and reclaimed support of 0.0014 in December.
The fakeout attracted bulls who were staying on the sidelines. As a result, Binance Coin took out the diagonal resistance of the triangle.
Daily chart of BNB/BTC
With the diagonal resistance out of the picture, BNB/BTC appears to have regained its bullish tone. If you’re looking to place long positions in the market, you might want to be patient and buy as close to 0.00146 as possible. That’s where both the 50-day moving average and the 100-day moving average are crawling.
Invalidation of this view comes if BNB/BTC trades below 0.0014.
NEM’s corrective period may be finally coming to an end. While the market did breach the initial support of 0.0000176, it looks like it is establishing a new base at 0.00001544.
Daily chart of NEM/BTC
If market participants can keep XEM/BTC above 0.00001544, it will send a strong message that the NEM remains bullish. After all, the market would have just established its first pair of a higher high and a higher low in months.
On the other hand, if XEM/BTC goes below 0.00001544, the sentiment will likely shift from bullish to neutral.
While 0x remains in a downtrend, there might be an opportunity to bottom-pick the market. With 0x creating a falling wedge on the daily chart as it approaches key support area of 0.000073, it might be possible to profit from a dead-cat bounce. Should ZRX/BTC break out from the falling wedge, the initial target is 0.0001.
Daily chart of ZRX/BTC
Keep in mind that 0x is still in a downtrend so have tight stop losses if you’re planning to take on this trade.
Bitcoin Gold (BTG/BTC)
Bitcoin Gold appears to be establishing a new base at 0.0033 support. Market participants have been accumulating positions around this area for over a month. If bulls can hang on for another week or so, Bitcoin Gold may just establish a bullish higher low. This will enable the market to trend higher.
Daily chart of BTG/BTC
A bullish higher low setup might inspire bulls to tap resistance of 0.005564. Otherwise, Bitcoin Gold might revisit lows of 0.00256.
Last week’s crash has driven many altcoins near key support areas. Nevertheless, this gives us a chance to look at coins that are showing signs of strength and are trading near key support areas. There’s a lot of uncertainty going on in the market so make sure to place tight stop losses if you’re planning to enter any trade.
Featured image courtesy of Shutterstock.