Long-Term Cryptocurrency Analysis: Bitcoin, Ethereum, Ripple, Litecoin, and Dash
It was a long and frustrating week for most cryptocurrency traders as the correction in the two main coins, Bitcoin and Ethereum continued, with a long low-volatility drift that was followed by a decline on Friday. To put the week in perspective, the long-term charts are basically unchanged, even as the short-term moves are being magnified by the recent sharp swings in both directions.
Given the several 100% of gains this spring, the correction is a normal part of the market cycle, and with some of the majors already hitting new highs since the lows last Monday, and the other trading also above their lows, the long-term uptrend seems intact in the sector. But are we close to a new leg up? Let’s see what the charts say.
BTC/USD Daily Chart Analysis
BTC is still roughly in line with our projection for the correction and although more time is likely needed before a sustained move higher if we use the previous cycles as a comparison. The currency has likely already hit its correction low, but a re-test of the developing is still possible in the coming period.
ETH/USD Daily Chart Analysis
Ethereum is also trading above the correction lows, despite being relatively weaker recently. As the coin outperformed Bitcoin by a mile during the spring rally, the deeper (50%) correction was justified. The declining short-term trend remains intact with strong support zones at $230 and at $200. The MACD is already back to neutral, although it’s still bearish, and the short-term declining trend is also intact. Volume is trending lower, and the momentum of the correction is falling. A break-out above the declining trendline could open up the way to $300, while the re-test of the lows is still possible.
LTC/USD Daily Chart Analysis
Litecoin is in a different “rhythm” compared to the two giants, as it hit a new high this week before entering a short-term correction. The long-term picture shows slightly overbought readings and a bearish divergence that points to a consolidation in the near future. One more push higher to reach the range projection target around $58-$60 is possible, but we would wait for a neutral reading on the MACD before entering new positions.
XRP/USDT Daily Chart Analysis
Ripple is still stuck in a long-term consolidation since mid-May, which started after a 7-fold rise in only two months. The coin is trading in a broad range that has been intact since the end of May. The MACD indicator is still neutral and trading volumes remain very low compared to the active periods. Short-term traders should still wait with new positions, while long-term investors could still add to their positions here.
DASH/USD Daily Chart Analysis
Dash is still the most bullish major, despite the recent breakout that failed hold above $200. The long-term MACD is just after a bullish cross, and although it didn’t reach neutral territory it still has more room for even a strong rally from here. Short-term positions could be opened near the current levels, anticipating a move above this week’s highs, with a long-term target still ahead just below $260.
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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