Cryptocurrency Analysis: Rally Continues as Bitcoin Hits Targets
by Mate Cser for hacked.com
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Bull market action continued in the crypto segment during the weekend, as the Bitcoin-led advance carried most of the majors higher. BTC experienced a perfect break-out from the bullish volatility compression pattern that we pointed out last week. The coin hit a marginal new high today in early trading, breaching the second Fibonacci-target at $3410 for the break-out, while the short-term momentum indicators are now in overbought territory. The long-term picture is also getting a bit stretched, so reducing exposure on strength is advised.
BTC/USD, 4-Hour Chart Analysis
NEM outperformed once again, starting a new leg higher after breaking out of the long-term correction pattern just like Ethereum. Monero and Litecoin are also in the bullish looking pack, while Ethereum Classic and Especially Ripple are still weaker, being stuck in their downtrends for now. Bitcoin Cash staged a rebound after last the strong decline in the second half of last week, and that helped the segment in getting close to the $120 billion in total capitalization for the first time ever. Let’s see how the most traded coins are shaping up today.
Ethereum
ETH/USD, 4-Hour Chart Analysis
ETH finally moved out of the declining trend that dominated its deep correction and surpassed several resistance levels, confirming the bullish move. The coin has further targets at $285, and near $330, as the short-term momentum indicators are getting close to overbought territory. That said, the long-term picture is still encouraging and dips should still be bought here.
Litecoin
LTC/USD, 4-Hour Chart Analysis
Litecoin is holding on to its recent gains in a narrow consolidation pattern, with the $50 and $58-60 targets still being intact. Both the short- and long-term trends look positive, with strong support at $44 and at $42.
Dash
DASH/USD, 4-Hour Chart Analysis
Dash hasn’t joined the rally in earnest yet, as it continues to trade between the $190 and $200 levels, although the picture is still clearly bullish. A break-out above the $200 level could open up the way tot the prior highs at above $220, with the long-term target still being just above $250.
Ripple
XRP/USD, 4-Hour Chart Analysis
XRP is still not showing relative strength, but at least it’s holding up above the key support levels at $0.175 and below that at $0.16. With the sideways price action the coin is drifting towards the declining long-term trendline, possibly setting up a break-out. The long-term picture remains constructive, and investors could still add to their positions here.
Ethereum Classic
ETC/USD, 4-Hour Chart Analysis
ETC is also lagging the other majors, still being inside its declining trend, and below the $16 and $18 resistance levels. Key support is found around the $14 level, and the long-term picture is still oversold, providing a buying opportunity for investors.
Monero
XMR/USD, 4-Hour Chart Analysis
Monero breached the $50 level during the weekend and started a short-term correction after a period of relative strength. The rising trend remains intact and a test of the all-time highs seems likely in the coming period. Support levels are at $46, $42 and $40.
NEM
NEM/BTC, 4-Hour Chart Analysis
NEM completed its short-term correction and surged higher once again overnight, possibly headed for the next major resistance level at 0.00010. The long-term picture is still bullish and we expect more gains for the coin in the coming weeks.
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