Crypto Update: Bitcoin and Two Altcoins to Revisit Lows
The first month of the year hasn’t been so kind to large cap cryptos like Bitcoin (BTC/USD), EOS (EOS/USD), and Monero (XMR/USD). While these three cryptos ended the last couple of weeks of 2018 strong, they’ve been pulling back ever since the calendar switched to 2019. As a matter of fact, they are now in danger of giving up all of the gains they made in the last couple of weeks in December 2018. Even though this sounds bearish, bargain hunters may take this chance to bottom pick the market and play the bounce.
In this article, we show how Bitcoin, EOS, and Monero are likely to revisit recent lows.
Bitcoin showed signs of life on December 20, 2018 when it went as high as $4,299 on Bitfinex. At that point, the market skyrocketed by over 33% from the 2018 lows of $3,215 on December 15. Some investors were experiencing euphoria. They thought that Bitcoin finally found the bottom and the market was ready to reverse.
Unfortunately, a reversal remained a figment of the imagination. Bitcoin went below the range midpoint of $3,775 on January 10, 2019. Since then, the market has been steadily bleeding out.
Daily chart of Bitcoin on Bitfinex
While Bitcoin continues to show weakness, the silver lining here for the bulls is that the market seems to be printing a falling wedge. The apex of the wedge is close to the recent lows of $3,215. If it plays out, you can buy as close to $3,215 as possible and sell as close to the top end of the range at around $4,300. Nevertheless, this wedge shows that Bitcoin is likely to revisit recent lows.
Just like Bitcoin, EOS is in peril of giving up all of its late December 2018 gains. Bulls had multiple attempts to take out the range high of $3.00. Unfortunately, bulls lost all momentum after their sixth attempt failed. As soon as participants realized resistance of $3.00 won’t budge, many panic sold. This quickly drove the market down to the range midpoint of $2.375.
With the prevailing bearish outlook, it didn’t take EOS long to move below $2.375.
Daily chart of EOS on Bitfinex
Currently, EOS seems to be forming a bear flag on the daily chart. A break below the support of the flag at $2.20 will likely send the market down to the range low of $1.75. Bottom pickers and bargain hunters can anticipate this drop and set bids around this level.
Monero appears to be mirroring the price action of EOS.
After failing to take out the range high of $58.50 on December 24, 2018, Monero quickly dumped to the range midpoint of $46.17 on December 27. While the market managed to bounce off the support, it printed a lower high of $57 on January 7, 2019. Bears capitalized on this weakness as they sent Monero below the range midpoint of $46.17 on January 10.
Daily chart of Monero on Bitfinex
Just like EOS, Monero appears to be forming a bear flag on the daily chart. A move below the support of the flag at $43 would trigger the breakdown and send Monero down to the range bottom of $38.50.
Pending a huge rally in the next couple of days, January is likely to print a red candle on the monthly charts of Bitcoin, EOS, and Monero. After failing to stay above their range midpoints, these three cryptos are printing structures that will likely send them down to the bottom end of their ranges. Bottom-pickers and bargain hunters can take this opportunity to buy the dip and potentially profit on the bounce.
Featured image courtesy of Shutterstock.