Long-Term Cryptocurrency Update: Bitcoin, Ethereum, Ripple, Litecoin, and Dash
The crypto-correction continues in earnest this weekend, with Bitcoin leading the way lower this time around, “catching up” with our previous roadmap for the correction. The most valuable coin is testing the developing long-term base formation after spiking below the $2000 level earlier on today.
BTC/USD Daily Chart Analysis
The other majors are following BTC lower, although Ethereum held above its prior low so far, together with the majority of the smaller coins. The long-term charts are getting oversold after the broad and deep correction, and sentiment is starting to get gloomy enough for a long-term bottom. While the short-term trends are clearly negative and the Judgement Day of Bitcoin is still looming, this is already a much better time to buy for the long run than one month ago when we warned about the overbought condition. Let’s take a step back again this weekend and see how the other majors are holding up on the long-term charts.
Ethereum bounced off its previous low once again today, and it still trades above the key $175 level. The short-term trend is still negative despite the recent bounce, but the long-term MACD is getting oversold after the one-month correction. The ETH token has already declined by 60%, and long-term investors are advised to add to their position here.
LTC/USD Daily Chart Analysis
Litecoin failed to test the $58-$60 range projection target this week, and it is dragged lower this weekend by the broad correction. The bearish divergence on the long-term MACD led to a correction back to the $40 level, but so far, the previous support levels are holding up well, in line with the relative strength that the coin has been showing. We still expect more sideways action before a move higher, as the long-term trendline has been broken.
XRP/USDT Daily Chart Analysis
Ripple is still stuck in its long-term consolidation pattern since mid-May, but it’s holding above the forming base pattern, despite the recent sell-off. The long-term technical picture remains unchanged and we still advise short-term traders to wait with new positions, while long-term investors could still add to their positions here. If the coin holds above the 0.175 level that could be a bullish short-term sign, and a good long-term entry point.
DASH/USD Daily Chart Analysis
Dash has been weaker this week than we expected, as the broad correction pushed the coin back towards its prior high at $150, although another rally attempt seemed likely. The coin missed our final long-term target for the breakout, but it remains inside the rising trend, as it is testing the lows from late June. With the MACD already in neutral territory, we remain bullish on the coin, especially as the other majors are nearing oversold momentum readings.
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-to-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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