Crypto Update: Bullish Breakouts for ETC, IOTA, and LSK
This is part three of our multi-coin analysis series. We continue to look at altcoins that have successfully reversed their trend. This series aims to show you how cryptocurrencies are slowly emerging from the altcoin apocalypse of 2018, where many pairs were devalued by as much as 90% in less than a year. Ultimately, we wish to help restore investor confidence and possibly inspire those who were impacted to recoup their losses.
In this article, we reveal major bullish breakouts for ETC, IOTA, and LSK.
Ethereum Classic (ETC) Analysis
The Ethereum Classic/Ethereum (ETC/ETH) pair managed to climb to as high as 0.07051609 on November 28, 2017. Unfortunately for buyers at this level, 2018 ushered in a low of 0.02246813 on February 1. In a couple of months, ETC/ETH lost almost 70% of its value.
Such a heavy loss in such a short period of time would have devastated any retail investor. However, the deep retracement attracted bargain hunters and bottom fishers.
Daily chart of ETC/ETH
The pair established firm support at 0.024 where it consolidated for six months. Then on August 4, ETC/ETH broke out of a double bottom reversal pattern. This was a clear signal that the bear market was over.
ETC/ETH is one of the few altcoins in the green this year. It is up by over 25% year-to-date thanks to its recent bullish reversal.
The IOTA/Ethereum (IOTA/ETH) pair plummeted to 0.0015 on February 1, 2018. At that price level, the market was down by almost 75% from the 2018 high of 0.0056981.
Any sane investor would have lost heart at this point. However, it is sometimes beneficial to factor in your emotions when making investment decisions. If you’re feeling depressed, chances are others feel the same, too. Depression can be a reliable indicator that a bottom is in place.
That’s exactly what happened to IOTA/ETH.
Daily chart of IOTA/ETH
IOTA/ETH used 0.0015 to establish a firm support level. While bears managed to put together a series of lower highs throughout the recent downtrend, bulls valiantly defended 0.0015. Then on August 27, the market broke out of the long descending triangle pattern with extremely heavy volume. The momentum was generated by the strong demand at 0.0015 support.
Count IOTA/ETH as another altcoin out of bear country.
LISK (LSK) Analysis
Lisk/Ethereum (LSK/ETH) dropped by almost 80% from the 2018 high of 0.038 when it slumped to 0.00851965 on August 8. Back then, it looked like LSK/ETH had more downside potential. A quick look at the weekly chart, however, showed a different story.
Weekly chart of IOTA/ETH
From a long-term perspective, we could clearly see that bears were up against the market’s uptrend support of 0.008. That line has never been breached and especially not in this scenario where bears suffered exhaustion. On the contrary, bearish exhaustion was one of the major factors that triggered the breakout from the large falling wedge.
With bears out of the picture, bulls appear to be in total control of the market.
Altcoins looked bearish for most of 2018, but no more. With bears facing exhaustion, bargain hunters and bottom pickers have emerged. Like other altcoins in this series, they’ve helped ETC/ETH, IOTA/ETH, and LSK/ETH reverse their trends.
Featured image courtesy of Shutterstock.