Long-Term Cryptocurrency Analysis: Bitcoin and Ethereum Break-Out of Declining Trends

The altcoin-led rally continued since our previous look at the long-term charts, and the major coins all confirmed a new short-term uptrend. Most of the largest digital currencies also broke out from their broad declining trends, as the total value of the segment is now more than 50% above the level around the correction low.

BTC/USD, Daily Chart Analysis

The overall picture remained positive, with only Bitcoin’s weakness causing headaches for crypto bulls, as the most valuable coin is hovering close to declining trendline that dominated trading throughout the first quarter of the year.

Despite the short-term weakness, BTC is still among the stronger majors from a long-term perspective, and with the secular uptrend clearly being intact, long-term investors should hold on to their coins and add to their holdings on the short-term pullbacks.

Crucial resistance is still just ahead between $9000-$9200, with further levels at $10,000 and $11,300, while support is found near $8400, $7650, and in the $6150-$6250 zone.

ETH/USD, Daily Chart Analysis

Ethereum built upon its recent relative strength, and the coin broke out convincingly above the declining trendline, and reached the next key resistance zone between $625 and $640 before the momentum of the move stalled.

While there are still several strong zones ahead, with the closest ones near $725 and $845, barring a quick move back below the declining trendline, the coin should continue the advance. With the long-term MACD still just in neutral territory, long-term investors could add to their holdings during short-term corrections, with key support levels at $500, $450, and $400.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin’s rally has been relatively weak compared to the leaders of the move, although it managed to top $150, and the coin is still strong from a long-term perspective, similarly to Bitcoin. We expect the coin to regain its strength in the coming weeks and test the $170-$180 zone, as the long-term MACD is still only neutral. Long-term investors could still add to their holdings, with support found at $140 and $125.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash cleared not only the $435 resistance, but also spiked above $500 just today, confirming the new short-term uptrend and the likely major bottom. Although the short-term picture is overbought, the long-term setup is still favorable, and there is further room for gains in the coming weeks. The coin faces further resistance zone between $575 and $600 and $650, while key support below $435 is at $400.

Ripple

XRP/USD, 4-Hour Chart Analysis

While XRP is trading in a short-term correction after doubling off its recent low, the coin is clearly bullish from a long-term perspective, as it left behind the previously dominant declining trendline. The currency still has room for further gains, and investors could add to their holdings on the pullbacks, with support found right at the current price level near $0.85, at $0.73 and $0.64., while the next target is the $1 level.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic established a new short-term uptrend after a period of relative weakness, and now the coin is testing the $20 resistance level. The MACD indicator is now in neutral territory, but investors could still add to their holdings, even as very strong resistance is ahead near $23, while support levels are now found at $18 and $16.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero confirmed the base pattern in the $150-$175 zone, as it regained its relative strength during the past week and rallied all the way to the $280 resistance. The coin is still among the strongest majors from a long-term perspective, and although the best time to buy passed, investors could still add to their holdings on the pullbacks. Resistance levels are now ahead at $300, $335, and $400, while key support is at $260, $240, and $200.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO’s advance halted near the $80 resistance and the broad declining trenldine, but the long-term picture remains positive, and we expect the coin to follow the market higher in the coming weeks. While a short-term correction is likely already underway, investors should hold on to their positions and accumulate the currency on the pullbacks. Strong resistance zones are ahead near $100 and $110, with support found at $64 and $50.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA confirmed the new uptrend with a move above $1.5 as we expected, and surged above the $1.9 level as well, reaching up to the next resistance zone between $2.2 and $2.35. Long-term investors now should only hold on to their coins, while traders could still be looking for entry points during the short-term corrections with further targets are ahead at $2.65 and $3.

EOS

EOS/USD, 4-Hour Chart Analysis

EOS is getting overbought from a long-term perspective, after rising almost three-fold off the March lows, and reaching up to the $12 level as the early leader of the rally. Strong resistance is just ahead at $12, with another zone near $15.50, while key support is between $8 and $9. Long-term investors could still hold on to their positions, although taking some chips off the table near $12 is advised.

How to Use These Charts?

As we stressed in our article on Bitcoin: “…not all strategies are binary (either holding an asset or not).There are many long- and short-term investment and trading strategies that can be successful in a roaring bull market like the one that the crypto-coin segment is experiencing, but mixing the time-frames and mixing trading and investing (see our article on the topic) could lead to troubles.”

Here is a reminder of some of the possible strategies once again:

  • Buy and hold, without caring about day-to-day (or even month-to-month) fluctuations
  • Buy and hold a core position and add on the major dips; a very powerful strategy
  • Buy a certain amount every week or month, and even-out your entry price, without the hassle of timing the market
  • Try to catch major turning points to reduce and “re-boost” your position
  • Trade short-term movements with stop-losses, targets, and strict risk management (this is trading not investing)”

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Author:
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.