Long-Term Cryptocurrency Analysis: Bitcoin Holds up Amid Broad Sell-Off

Cryptocurrencies had a mixed and divergent week that ended with a bearish move on Friday with Bitcoin performing relatively strong throughout the period, helped by the BIP 91 consensus. BTC took a nosedive on Monday, but recovered from that move well, and it’s now trading near last weekend’s levels, while the other major coins are deep in the red for the week.

The long-term picture for the most valuable coin is unchanged despite the volatile week, with the break-out from the one-month long correction holding up, and the strong resistance zone below the prior all-time high still being ahead of the coin. The MACD indicator is still bullish, without reaching overbought readings, leaving room for at least a re-test of the $3000 level in the coming period.

BTC/USD Daily Chart Analysis

While BTC emerged from the deep correction, some of the other majors like Ethereum, Ripple, and Liteocin are still stuck in their respective corrective patterns. The short-term leaders, Dash and Monero, are also dragged lower by the broad weakness this weekend, just as most of the smaller coins. Let’s take a look at the long-term charts of the most traded majors to evaluate the technical damage.


ETH/USD Daily Chart Analysis

Ethereum continued to lag Bitcoin and failed to hold the $200 level this week, as the declining trend that defined the 60% correction is still intact. The daily MACD indicator is still in oversold territory, although it got closer to neutral thanks to the recent bounce. The $175 level is in the focus right now, and a break below that would be a bearish short-term sign, while a long-term bottom is still likely to be forming.


LTC/USD Daily Chart Analysis

Litecoin is just entering neutral territory concerning the daily MACD indicator, after the strong rally in June, as the coin is trading sideways between $40 and $44. The currency is still above the base formation that stopped the declines in the past month. The declining trendline of the triangle consolidation pattern is intact and we expect more range trading before the next major move.


XRP/USDT Daily Chart Analysis

Ripple is still inside the more than two-month long correction pattern, with a base formation still being formed between $0.14 and $0.18. The coin still hasn’t signaled a clear trend change, and although investors could add to their holdings on short-term dips, short-term traders should still be cautious with new positions.


DASH/USD Daily Chart Analysis

Dash remains the most bullish major besides BTC, still being in a clear long-term uptrend, close to its recent all-time highs. The coin is testing the $175 level this weekend, while the line-in-the-sand support zone around $140 and the level of the prior high at $150 also below the current price. The MACD indicator is still in neutral territory, with resistance zones ahead at $190, $200 and at $220. Traders and investors should still expect a test of the prior highs in the coming weeks.

Ethereum Classic

ETC/USD Daily Chart Analysis

Ethereum Classic is testing the key support zone around the $14 level, with the daily MACD is still oversold. ETC has been relatively weak in the recent period, but the long-term setup is unchanged for now. Investors could still add to their positions here, but short-term traders should wait for a trend change before opening new positons.

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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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.