Long-Term Cryptocurrency Analysis: Bitcoin and Ethereum Rally Continues amid North Korea Fears
The most valuable coin topped $60 billion in market cap during the week for the first time ever, doubling from the correction lows in July in three weeks. The SegWit rally helped the whole segment in leaving behind the more than one-month long-correction, but the long-standing majors failed to break-out to new all-time so far, as the up and coming coins with momentum drew capital and the past week’s geopolitical tensions favored BTC as a safe haven asset.
Bitcoin completed the long-term correction and break-out pattern that we anticipated in June, and now it’s getting long-term overbought again, although the previous extreme readings are not yet hit. The final target of the move is around $4200, but we advise investors to reduce their holdings on the way up, as corrections tend to be violent from overbought readings. As Bitcoin is so much ”ahead of the pack” concerning long-term momentum, better reward/risk opportunities lie in the other majors, such as Ethereum, Litecoin, and Dash. With that in mind let’s see how the daily charts look after this bullish week.
ETH/USD, Daily Chart Analysis
Ethereum has been consolidating for most of the week, after hitting $310 on Monday and pulling back towards the $285 support. The long-term momentum indicators are still signaling plenty of upside potential, and a rally towards the previous all-time high seems likely in the coming weeks, with the well-established uptrend in place. The $330 level is the primary resistance here, with support found at $285 and near $250.
LTC/USD, Daily Chart Analysis
Litecoin recently provided a bullish cross on the daily MACD after the correction that started in July. The coin rallied up above $50 before entering a short-term correction with the other majors. The long-term picture is clearly positive, and an advance towards the $58-$60 zone is still likely in the coming weeks.
XRP/USDT, Daily Chart Analysis
Ripple failed to break-out from its protracted correction pattern that has been dominating the market since May (after a 6000% rally). The $0.16 support and the $0.18 resistance are in focus now, but the $0.22 level would be the strongest resistance in the case of a break-out.
DASH/USD, Daily Chart Analysis
Dash is still the closest to its all-time highs among the majors, although it failed to produce a break-out lagging BTC and ETH during the bullish move. That said, the long-term uptrend is clearly intact while the short-term triangle consolidation pattern is still holding the coin back. The range-projection target remains at $260, while support levels are found at $190, $175, and $150.
ETC/USD, Daily Chart Analysis
Ethereum Classic continued to trade similarly to Ripple, staying within its consolidation pattern while holding above strong support. The coin remains bullish both short- and long-term, but a traders should wait with significant new positions until a break-out form the downtrend. The long-term MACD is neutral giving more opportunity to investors to increase their core positions.
XMR/USD, Daily Chart Analysis
Monero short-term rally halted at $52, but the coin remains relatively strong, given the almost 100% rally of its correction lows. The $46 support could be in the center of attention until the short-term correction runs its course, while a rally to $58 is still very likely in the coming weeks. Further support levels are found near $42 and $38.
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-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)”
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