Crypto Update: 5 Altcoins to Watch This Week
Over the last few weeks, we’ve been looking at small-cap altcoins making big moves. A good number of these altcoins such as DOCK (DOCK/BTC), Haven (XHV/BTC), and Raiden Network Token (RDN) have moved according to expectations. While there are many micro-cap alts showing promise, we shift our attention to large caps, which made stirring moves over the weekend.
In this article, we reveal the five large cap altcoins to watch this week.
1. Bitcoin Cash/Bitcoin (BCH/BTC)
News of the November 15 hard fork has given Bitcoin Cash a new lease in life. Over the weekend, the market went parabolic and broke out of a small descending triangle pattern on the 4-hour chart. In doing so, BCH/BTC breached multiple resistances and climbed as high as 0.091342 on November 4 before profit-taking commenced.
4H chart of BCH/BTC
In the coming days, we expect the market to pull back as bottom pickers and bargain hunters lock in gains. Nevertheless, keep a close eye on Bitcoin Cash. It will likely retest support one (S1) and dip as low as S2. Bulls must successfully complete the retests to give the market a chance to take out resistance one (R1) first and then R2.
NOTE: Bitcoin Cash is BCH on most exchanges, but some refer to it as BCC instead.
2. Ethereum/Bitcoin (ETH/BTC)
Just a few days ago, social media was flooded with posts regarding the demise of Ethereum. Many predicted that ETH/BTC will revisit its 2018 low of 0.026882 that we saw on September 12. The tune suddenly changed, however, as Ethereum/Bitcoin broke out of the descending triangle pattern on the 4H chart and went as high as 0.033577 on November 4.
4H chart of ETH/BTC
Unfortunately, Ethereum flashed extreme overbought readings before it could touch R1. Thus, we can expect it to retrace back to S1 or at least close to it before making another attempt to breach R1.
Ethereum must take out R2 to start looking bullish. The true bull run begins once it moves above R3.
3. Monero/Bitcoin (XMR/BTC)
Monero is not getting the attention that it deserves. It did not make a big splash over the weekend. However, XMR/BTC broke out of range when it breached resistance of 0.017 on November 4. The breakout enabled the pair to rally and touch R1 before succumbing to profit-taking.
4H chart of XMR/BTC
Monero pulled back after respecting RSI resistance of 78. We expect the pair to continue correcting in the next few days but we believe it will not go below S2. If S2 holds, then we might be looking at a large cup and handle reversal structure. With that being said, Monero must take out R2 to ignite its bull run.
4. TRON/Bitcoin (TRX/BTC)
Compared to other altcoins on this list, TRON had a rather ordinary weekend. Nevertheless, it made the list because of its ability to stay above S1 after climbing as high as R2 on October 8, 2018. This price movement is enabling TRX/BTC to establish a bullish higher low setup around 350 satoshis. The market needs this new base if it wants to take out R1.
4H chart of TRX/BTC
Currently, TRON is in near overbought territory. We expect it to pull back before it makes a move to breach R1 and R2. Take out R2 and TRON launches a new bull run.
5. Litecoin/Bitcoin (LTC/BTC)
Capping off our list is Litecoin. LTC/BTC had a strong weekend as it went above 0.00809 and climbed as high as 0.008663 on the same day (November 4). At that level, however, the market was extremely overbought. This gave bottom fishers and bargain hunters the signal to start unloading.
4H chart of LTC/BTC
To start showing signs of bullishness, Litecoin must hold S1. This will enable the market to establish a bullish higher low setup. LTC/BTC faces a few near-term resistances so a higher low can only help its cause.
To reach escape velocity, Litecoin must go above R3 and flip the resistance into support.
Large cap altcoins such as Bitcoin Cash, Ethereum, and Monero showed some life over the weekend. Most of them are currently correcting after strong rallies. Should the levels discussed hold, then these alts may generate stronger rallies towards the end of the week.
NOTE: a satoshi is the smallest unit of Bitcoin, which equals to 0.00000001 BTC.