It was a huge week for the cryptocurrency market as the much-awaited Bitcoin and the beginning of the SegWit activation process for the most valuable coin raised fears and expectations alike before August 1. The fork and the transition went relatively smoothly, and that restored the confidence of investors, pushing volatility down in the second half of the week. The calm environment served as a good base for the BTC market to stage a strong rally this morning, in line with the still encouraging long-term picture.
BTC/USD, Daily Chart Analysis
The main targets for the breakout are near $3200 (already hit), around $3450, with a long-term range projection target at $4200. The other major coins are also bullish after the hectic week, with Ethereum finally breaking out of its declining trend together with Litecoin, which also gave a long-term buy signal, and Monero that continued to show relative strength. As the bullish environment means lower correlations between the majors, the different coins are expected to move is different rhythm. Let’s see how the daily charts look after Fork Day.
ETH/USD, Daily Chart Analysis
Ethereum is trading between the two key levels at $235 and $250 this weekend, with the token finally moving out of the long-term correction pattern. A new uptrend is being established by ETH, and that could set up a move towards $285 in the coming period. The daily MACD is still bullish, and it is in neutral territory leaving a lot of room for the coin to rally. The $200 level serves as primary long-term support.
LTC/USD, Daily Chart Analysis
Litecoin took off together with BCT this morning, breaking out from the dominant triangle pattern in line with our previous recommendation. The long-term MACD gave a buy signal today, after the coin established a new base between $34 and $38. Our range projection target is still near the $60 level, with the prior high being slightly below that at $58. Support levels are at $44 and $40.
XRP/USDT, Daily Chart Analysis
Ripple is also moving higher, but it’s one of the last coins to be trapped in a declining pattern. That said, the coin is on a short- and long-term buy signal, despite the strong resistance zone ahead near $0.22 and the declining trendline just below that. A break-out from the correction pattern would confirm the base pattern and could signal a quick rally up to $0.30, with the MACD still being below zero.
DASH/USD, Daily Chart Analysis
Dash continues its bullish consolidation below its all-time highs, although it failed to break-out above $200, and it is still inside a short-term triangle pattern. The long-term MACD is neutral, while the uptrend remains intact. The long-term range projection target just above $250 could be in focus in the coming weeks, with support at $175 and $150.
ETC/USD, Daily Chart Analysis
Ethereum Classic is also showing bullish signs, although it’s still inside a correction pattern, just like Dash. The coin found support near the key $14 level again, and gave a short-term buy signal this week. The long-term MACD remains slightly oversold, still giving an opportunity to investors to load up on ETC.
XMR/USD, Daily Chart Analysis
Monero surged past the key long-term resistance at $46 today, and it go close to the short-term target at $50 as well. With the long-term MACD still being bullish near the 0 level, a rally towards $58 is likely. A rally above that level could set up a move towards $66 and $70, our mid-term targets, with storng support at $42, and at $38.
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)”
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