Crypto Update: 5 Altcoins to Watch This Week
Last week, we covered large cap altcoins such as Bitcoin Cash (BCH/BTC), Monero (XMR/BTC), and Ethereum (ETH/BTC). Many of the alts that we’ve covered in this series have moved according to expectations. However, there are those like Haven Protocol (XHV/BTC) and (DOCK/BTC) that have moved strongly in the last weeks and exceeded expectations. We hope that we deliver more of these gems in this installment.
In this article, we deliver a fresh batch of 5 altcoins to watch this week.
Quarkchain broke out of a falling wedge on the 4-hour chart on November 8, 2018 when it broke out of the falling wedge and took out resistance of 650 satoshis. The breakout generated tremendous momentum as the market printed volume that’s over 300% of its daily average. This sparked a rally to 876 satoshis on November 11.
4H chart of QKC/BTC
Currently, the market is trading in overbought territory. Therefore, we expect it to retest support number one (S1). From there, technical indicators must cool off before it can make any meaningful attempt to breach resistance number 1 (R1).
QKC/BTC shows a lot of potential, which is why we believe that it will ignite a bull run once it goes above R1.
Red Pulse Phoenix/Bitcoin (PHX/BTC)
Red Pulse Phoenix broke out of a rounding bottom pattern on October 27 when it breached resistance of 365 satoshis. This generated a monster rally to 1,000 satoshis on the same day.
4H chart of PHX/BTC
From the looks of it, Red Pulse Phoenix is just getting started. We expect it to range trade between S1 and R1 for some time. This will enable the pair to create a new base of buyers who will help keep the market’s uptrend alive.
Bullish momentum should return once the market flips R1 into support. At that point, 1,000 satoshis is a real possibility.
Bread’s 4H chart looks messy, but that’s okay. The market broke out of a descending channel on the 4H chart. This triggered a strong rally to 7,610 satoshis on October 4.
4H chart of BRD/BTC
The market has been consolidating since, range trading between S1 and R1. This is a wide range so feel free to buy low and sell high if you get the opportunity. You can also consider the diagonal trendline as additional support.
In the end, we believe that it’s only a matter of time before Bread takes out R1 and ignites a new bull run.
CloakCoin shares a couple of similarities with Bread. The first one is that it relies on its diagonal support to keep trending higher. The second one is that it only must take out one more resistance to launch a potentially massive bull run.
4H chart of CLOAK/BTC
Another thing going for CloakCoin is that the 200-day moving average is serving as a firm support. Since late September, the market has managed to bounce every time the candle touched the 200-day MA.
We expect CloakCoin to take out R1 soon and ascend to R2.
We’ve been watching PO.ET from the time it claimed S1 and became bullish. From that point, PO.ET has been generating higher highs and higher lows. Currently, it is positioning to take out R1.
4H chart of POE/BTC
When the market does take out R1, it will trigger the breakout from the inverse head and shoulders pattern on the 4H chart. This will attract more traders who are watching this accumulation period from the sideline. If the breakout takes place, R2 and R3 become easy targets.
Small cap altcoins with bullish potentials have taken over our watchlist this week. While many are focused on large cap altcoins such as Stellar and Ripple, the likes of Red Pulse Phoenix, CloakCoin, PO.ET, Quarkchain, and Bread are making strong bullish moves in the background.
NOTE: a satoshi is the smallest unit of Bitcoin, which equals to 0.00000001 BTC.
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.