Technical Analysis: Bitcoin Creeps to New Highs as Altcoin Rally Continues

The cryptocurrency segment continues to reach new highs on a daily basis, as Bitcoin is holding up to its recent gains, while altcoins are steadily rallying. The major coins are experiencing constant rotation, but overall, the value of the segment is growing, and it reached $240 billion today for the first time ever.

IOTA is the strongest major of the day, as the coin emerged from a short-term correction to hit a new rally high just below the $0.95 level. The short-term uptrend in the coin is intact and although the currency is getting overbought we still expect the rally to continue, with a likely test of the previous high at $1.1, and key support levels are found at $0.75 and $0.64.

IOTA/USD, 4-Hour Chart Analysis

BTC is also trading in a short-term uptrend despite the overbought long-term picture, and the currency scored a new all-time high again above the $8250 level, although the momentum of the move is weak, and the 4-Hour MACD is showing negative divergence. Investors should still wait for a deeper correction before entering new positions here with crucial support at $7700, $7000, and $6700.

BTC/USD, 4-Hour Chart Analysis

Altcoins are broadly higher today, with Monero being in a very good position for a rally to new all-time highs, Ripple, Ethereum, and ETC also showing encouraging strength, while Dash and NEO trading in short-term consolidation patterns.

Ethereum

ETH/USD, 4-Hour Chart Analysis

Ethereum is consolidating above the prior resistance level at $350 after the weekend rally, and the second largest coin looks set to test the $380 level, with a good chance of a rally towards the $400 level and the all-time highs in the coming week. Support below $350 is found at $330 and $315, while the rising long-term trendline is currently at $320.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin is edging towards the $75 resistance after leaving the vicinity of the key $64 level and the coin remains bullish on all-time frames, without getting overbought. We still expect a test of the $82.50 target, with a possible rally to $100, with the all-time high just below the historic level. Further support is found below $64 at $56.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is still consolidating in a bullish pattern after its break-out to new highs, and the coin is holding up above the previous high at $400. While long-term investors shouldn’t open new positions here, as the coin is now on a neutral signal, traders could still play the rally. Support below $400 is found at $360 while resistance is ahead near $500.

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple is drifting higher after a period of relative weakness, and it triggered yet another short-term buy signal following the previously failed break-outs. The long-term picture remains clearly positive, and investors should still add to their positions here. Support is found around $0.2250, and near $0.20 while resistance is ahead at $0.26 and $0.30.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic climbed above the $18 level after the short-term correction, and it looks set to test the $20 level in the coming days, with the all-time high also ahead at $23. The long-term picture is getting overbought, but traders should still play the rally, with support below $18 at $16 and $14.50.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero moved away from the $125 support/resistance level after a choppy consolidation period, and the coin remains one of the most promising major from an investment standpoint. Only the all-time high near the $150 level remains as resistance ahead, and we still expect a rally to new highs in this cycle, with support found at $125 and $100.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO pulled back to the crucial $40 level after the explosive rally, and it’s now trading in a short-term flag pattern, still being clearly bullish from a long-term perspective. The coin has support at $34 and $30, and we expect a move above $50 towards the all-time highs.

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Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

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.