Long-Term Cryptocurrency Analysis: Bitcoin Flirts with $8000 as Altcoin Bull Persists
Bitcoin’s swift recovery was the main topic of the week, as the most valuable coin not just regained its steep losses, but hit a marginal new high towards the end of the period. The entire segment is experiencing capital inflows as the total value of the coins climbed above $230 billion for the first time ever after finally leaving the vicinity of the $200 billion mark.
BTC breached the $8000 level before turning slightly lower on Friday, but despite the severely overbought daily chart, it is still trading near its all-time highs. As the long-term picture still suggests a deeper correction, investors should wait with opening new positions and traders should also control position sizes here. Key support levels are found at $7700, $7000, and $6700, while the recent key break-out level at $5000 still hasn’t been re-tested.
BTC/USD, Daily Chart Analysis
Dash is still the most bullish altcoin from a technical standpoint, despite this week’s short-term correction, as the coin is trading above its prior all-time high, and this weekend, it looks ready to test the break-out high near $500. Support levels are still found at $400, $360, and $330, and as the long-term picture is approaching overbought territory, investors should only hold on to their positions here.
DASH/USD, Daily Chart Analysis
The other major altcoins are also mostly in bullish setups, with some of them already in the latter stages of this cycle, like Monero and IOTA, but elsewhere in the segment, there are still opportunities for both traders and investors. Let’s see the detailed long-term view.
ETH/USD, Daily Chart Analysis
Ethereum remained the most stable major coin this week, although it drifted higher along the long-term trendline, without leaving neutral territory regarding momentum. The investment picture remains favorable for the token, and we expect a test of the all-time highs in the coming weeks with strong support levels at $330, $315, and $300. Below the $400 level resistance is ahead at $350 and $380.
LTC/USD, Daily Chart Analysis
Litecoin hit yet another target this week, although it promptly turned lower off the $75 level, and remains below the key resistance. That said, the coin remains in bullish setups on all time-frames, and the long-term chart still doesn’t indicate an overbought stance. The next target is ahead at $82.50, and a test of the $100 level is a possibility during this cycle, with support levels at $64 and $56.
XRP/USDT, Daily Chart Analysis
Ripple broke out of its dominant trading range yet again, but it fell back to the $0.2250 support afterwards, with the coin still showing relative weakness compared to the other altcoins. XRP continues to be in broad long-term trading range, and although we expect a move above the pattern, more sideways price action is likely. Support is still found just below $0.20, $0.18, and $0.16, while resistance is ahead near $0.26.
ETC/USD, Daily Chart Analysis
Ethereum Classic is still consolidating its recent gains, recovering after a brief deep below the short-term trendline. The long-term picture remains encouraging, although from an investment perspective it’s already late in the cycle to open new positions, but a rally towards the all-time high is still likely. Support is found at $16 and $14.50, while resistance is ahead at $18 and $23.
XMR/USD, Daily Chart Analysis
Monero is also in a clear short-term uptrend and with the coin being one of the strongest altcoins from a long-term perspective we expect at least a test of the all-time high near $150 in the coming period. The daily MACD is not overbought yet, and the currency remains on a buy signal on all time-frames. Key support is still below the current price level at $125 and $100.
IOTA/USD, Daily Chart Analysis
IOTA remained in the forefront of the rally this week, and the coin reached our next target at $0.75 and spiked as high as $0.90 before entering a short-term correction. Traders could still play a move towards the prior high at $1.10 but investors should reduce their holdings already. Key support levels are found at $0.75 and $0.64.
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)”
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.