ANALYSISLong-Term Cryptocurrency Analysis:
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.
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)”