Long-Term Cryptocurrency Analysis: Bitcoin Rally Reaches Euphoric Phase

Bitcoin shot higher this week surpassing the range projection target of the previous correction at $7000, and hitting a new all-time high at $7500 on Friday, with only Bitcoin Cash following the coin higher thanks to the increase in the correlation with its “big brother”. Although the short-term uptrend is still intact in the most valuable coin, given the severely overbought short- and long-term picture, even traders should stay away from new positions until the next correction, contrary to last week’s setup. Major support levels are found at $6300, $5800, and $5400.

BTC/USD, Daily Chart Analysis

Altcoins had a generally volatile week, as although the total market cap of the segment hit a new all-time high above $200 billion, capital flows favored BTC strongly, so its spike above $7000 caused a mini-crash in some of the coins.

That said, the main changes in the long-term setups were positive, as Ethereum Classic moved out of its declining trend, while Ripple also stabilized above the $0.20 level after a brief volatile period. The rest of the market is virtually unchanged since last week, but let’s see how the daily charts look this weekend.

Ethereum

ETH/USD, Daily Chart Analysis

Ethereum spiked to the bottom of the current dominant trading range this week, testing the $285 support yet again, while also touching the crucial long-term trendline. While the coin remains bullish from an investment standpoint, and he daily MACD is neutral, short-term traders should still wait for a break-out from the range. Support is found at $285 and $250, while resistance is ahead at $315 and between $330 and $350.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin remained relatively quiet despite the hectic period, leaving the long-term setup unchanged, as the $56 support/resistance level is still in focus. The currency is among the stronger majors from a technical perspective, but a move out of the current consolidation pattern is required for a bullish confirmation for traders. Support levels are still found at $51 and $44 with targets ahead at $64 and $75.

Ripple

XRP/USDT, Daily Chart Analysis

Ripple returned to volatile trading this week, as it got hammered lower amid the Bitcoin surge, breaching the $18 support in the process, but it recovered strongly to finish the period in the green. The coin remains in a long-term trading range, despite the wild moves of the recent weeks, with a bullish technical outlook from an investment perspective. The short-term picture is neutral, and support levels are still found just below $0.20, $0.18, and $0.16, while resistance is ahead near $0.22 and $0.26.

Dash

DASH/USD, Daily Chart Analysis

Dash remains stuck in declining correction pattern, but it’s well within the advancing long-term trend, despite spiking below the $265 support during the altcoin sell-off. Similarly to its closest peers, the long-term MACD is neutral, and the technical setup is still encouraging, despite the lengthy correction. Targets for a bullish break-out are ahead at $330, $360, and near $400.

Ethereum Classic

ETC/USD, Daily Chart Analysis

Ethereum Classic is among the most active coins this weekend, after a much-awaited short-term trend change. The coin surged past the $11 level on Friday after getting dangerously close to the long-term support at $9 again. The $12.50 level has proven too strong for the currency for now, but the technical picture got much better thanks to the move, triggering a short-term buy signal, and another test of the key resistance is expected soon. Further resistance levels are still ahead around $13.50, $16, and $18.

Monero

XMR/USD, Daily Chart Analysis

Monero has been very stable throughout the week, and both the long- and short-term picture remained unchanged. XMR is still trading inside a range between $80 and $100, showing relative strength compared to the other altcoins.  We still expect a bullish move out of the pattern, with targets above $100 at $125 and near $150, and support below $80 at $68.

IOTA

IOTA/USD, Daily Chart Analysis

IOTA had another very volatile and slightly bearish week, as the coin remains stuck in a declining trend, but above the key $0.35 level. The currency spiked below that support during the week, but the strong rebound kept the bullish long-term picture intact. Major resistance is ahead near $42 and above that in the $0.45-$0.48 zone.

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

Author:
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.