Long-Term Cryptocurrency Analysis: Bitcoin and IOTA Lead Coins Higher
The major cryptocurrencies followed through the initial post-crash healing process with a healthy rally, skipping the re-test that usually follows such a sharp move lower. The segment even powered through another ICO ban, this time in South Korea, which only caused a brief decline and the strongest coins are back at or near their rally highs.
Bitcoin getting closer to the $4400 resistance after leaving behind the $4150 level, with the most valuable cryptocurrency being in the forefront of the advance yet again. BTC is the closest to its all-time high among the majors, as it is up by more than 40% since hitting the bottom. With several strong support/resistance levels already below the current price, $4000, $3800, and $3500, the coin looks poised to test the all-time high near $5000 in the coming weeks.
BTC/USD, Daily Chart Analysis
The other majors are in different phases of the recovery, as correlations broke down since last weekend and with the prior leaders, Dash, Monero, and Litecoin underperforming the broader market, another group of coins is leading the advance. IOTA and Ripple were among the most active coins in recent days, and with the long-term charts showing potential gains, they could remain relatively strong. Let’s see the details of the daily charts.
ETH/USD, Daily Chart Analysis
Ethereum is battling with the $300 resistance after recovering above the key $285 level following the crash. The coin got hit hard by the Korean ban but it bounced quickly off the lows, as the short-term remains clearly positive. The token still faces strong resistance near $330 and $380, but odds favor a test of the all-time highs in the current leg higher.
LTC/USD, Daily Chart Analysis
Litecoin has been stick below the $56 resistance all week long, as the coin remained relatively weak after the previous stellar rally and the following crash. The coin is on the verge of a bullish MACD cross, and that could signal the end of the deep correction, and the start of the next rally. Support is found at $51, $44, and $38, while primary resistance is ahead near $64.
XRP/USDT, Daily Chart Analysis
Ripple broke out of its declining short-term trendline, while the long-term picture remained neutral this week. The MACD indicator shows bullish readings, and a rally above $0.22, towards the $0.26 level seems imminent. The currency has strong support at $0.18, and near $0.16, while further resistance is ahead at $0.30.
DASH/USD, Daily Chart Analysis
Dash ended the week lower than last weekend’s levels, as the coin has been relatively weak during the post-bounce rally. The currency is still not far off its all-time high and given the relatively muted correction, more sideways price action is still likely before a sustained move higher. Support is found near $300 and $265, while resistance is ahead at $360 and near $400.
ETC/USD, Daily Chart Analysis
Ethereum Classic showed surprising strength after a period of alarming weakness, and the coin is now trading above both the declining short- and long-term trendlines. That said, the long-term base formation is still ahead as resistance, but the picture looks much better than a week ago, and the current price levels are still attractive for investors. Strong support is found at the $9 level, while key resistance is ahead around the $13.50 level.
XMR/USD, Daily Chart Analysis
Monero is still inside the short-term declining trendline that dominates the correction in the coin. The currency is trading below the $100 level as well, but the long-term picture is still bullish, and after the correction runs its course 9the MACD is slowly getting closer to a buy signal) we expect the coin to outperform once again. Support is still found at $80 and $68, while resistance is still ahead at $125.
IOTA/USD, Daily Chart Analysis
The coin has been among the strongest performers this week, as it broke out of the declining trend and from the short-term consolidation pattern as well. The MACD is clearly bullish after the lengthy move lower, and a rally above the $0.64 is likely in the coming week, with a possible test of the $0.75 level. Support is still found between $0.45 and $0.48, while further resistance is ahead at $1.10.
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