Long-Term Cryptocurrency Analysis: Bitcoin, Ethereum, Ripple, Litecoin, Ethereum Classic, and Dash
The cryptocurrency market went from hell to heaven in a matter of days, as the long-term correction that started in mid-June ended with a bang last Sunday. The liquidation-fueled final leg lower in Ethereum took the majors deeply into oversold territory, and this week was all about upside momentum adn rising prices.
That said, some of the coins, like ETH itself, are still stuck in their declining patterns, but the stronger currencies are already sporting uptrends, with Bitcoin leading the way higher after the lock-in of the BIP 91 protocol. BTC rallied by more than 30% bottom-to-top, as it got back in line with our one-month long projection for the correction.
BTC/USD Daily Chart Analysis
As we stated before the prior bearish move was the direct consequence of the spring’s stellar gains, but now, as the charts turned oversold in the latter stages of the correction odds favor at least a re-test of the previous highs in the segment. The total market value of the coins is nearing $100 billion again, with Bitcoin’s share jumping back to almost 50% amid the scaling-relief rally. As correlations naturally broke up after the panic abated, the majors will likely take diverging paths in the coming period. With that in mind, and as the weekend is quiet so far, let’s see how the most traded coins look if we take a step back.
BTC broke out of the declining trend that dominated trading for more than a month and pushed above the %2750 resistance yesterday. The long-term MACD is still only in neutral territory, leaving ample room for more upside. While a short-term consolidation is possible here and some chips could be taken off the table, we expect at least a re-test of the highs and most likely a rally to new highs in the coming period.
ETH/USD Daily Chart Analysis
Ethereum lagged BTC in the second half of the week, and it is still trading right at the declining trendline, with strong resistance ahead between $325 and $250. The MACD is still in oversold territory and despite the current sideways price action; we expect a move out of the declining trend and the start of a new short-term uptrend.
LTC/USD Daily Chart Analysis
Litecoin is hovering around the $44 level after the volatile consolidation phase that took the MACD indicator back to neutral territory following the strong break-out. The currency held the above the key support zone during the expected correction, but another test of the $40 level is possible before a sustained move higher.
XRP/USDT Daily Chart Analysis
Ripple remained inside its long-term correction pattern, as it has been relatively weak during the rebound this week. The coin is still yet to signal a clear trend change, and despite the fact that it is developing a base formation, we would still wait before opening new trading positions in XRP. That said investors could still add to their holdings on short-term dips, as the long-term momentum remains oversold.
DASH/USD Daily Chart Analysis
Dash remains the most bullish major, now joined by BTC, as the long-term MACD formed a bullish cross again, and the price of the coin is just below its all-time high after this week’ rally. An advance above $220 would signal a test of our long-term range projection target just above $250. Short-term traders should be looking for buying opportunities in anticipation of a break-out.
ETC/USD Daily Chart Analysis
ETC has been the least volatile during the long-term correction among the majors, holding on to its lofty gains, consolidating between $14 and $18 with the exception of a couple of brief spikes. The long-term MACD is still in oversold territory, giving an opportunity for investors to add to their positions here, while the short-term picture is neutral.
How to Use These Charts?
As we stressed in our article on Bitcoin in June: “…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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