Cryptocurrency Rally Continues as Ethereum and Bitcoin Shine

Cryptocurrency Rally Continues as Ethereum and Bitcoin Shine

his article was posted on Tuesday, 14:43, UTC. 

The major cryptocurrencies got bought aggressively following the weekend liquidation, and the most valuable coins rallied back above their prior high, giving the first confirmation of a possible long-term trend change. Bitcoin surged past $2150 and hit the key $2250 level, with the timing of the previous being almost perfectly in line with our prior projection.

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Apart from the technical position, BTC and the broader market were both boosted by the favorable developments regarding the BIP91 protocol that could save BTC from a hard fork event on the coin’s Judgement Day.

BTC/USD, Daily Chart Analysis

The coin did spike briefly below the base pattern that we have been monitoring, but the current rally should have marked the end of the correction, with the long-term picture reaching oversold territory last week. Most of the other majors and smaller coins are also sporting double digit gains from the lows, as the oversold currencies are slightly catching up to the likes of Litecoin and Dash which were holding up during the lengthy sell-off. Let’s look at the how the majors stand after the strong bounce.

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Ethereum

ETH/USD, 4-Hour Chart Analysis

Ethereum climbed above the previous low near $170 as well and rose as far as $195  today in early trading. The ETH token is still not out of the declining trend but if it can hold above the $170 level, the odds of a sustained rally are very high, given the long-term setup and the encouraging bullish momentum of the bounce.  The relative strength of the small cap coins in the last two days is also positive for the coin.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin has been drifting higher since yesterday, sticking to the rising long-term trendline, and reaching up to the crucial confluence zone near $44. The short-term declining trendline and the strong support/resistance line is now just ahead of the coin and a break-out would trigger a trend change. The MACD indicator is still bullish after turning higher yesterday, and with it being right at 0, the picture is favorable for a break-out if the other majors remain bullish.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash bounced back above the key $150 after testing the rising long-term trendline during the weekend, just as Litecoin. The coin has been slightly lagging LTC since yesterday, and it’s still below the upper boundary of the declining short-term pattern, leaving the short-term picture neutral. The currency remains among the most bullish majors long-term, but it needs to gain some strength to trigger a short-term buy signal.

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple is trading right at the 0.175 level after the bounce, still well inside the long-term correction pattern that has been dominant for over two months now.  Short-term traders should still avoid opening new positions until the declining trend is intact, but long-term investorsestors could add to their positions here.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

ETC has been held back by the declining short-term trendline just as Litecoin after showing considerable strength during the weekend sell-off. The key support zone around the $14 level held the coin recently, but a move above $18 would be ideal for short-term traders to have an “all clear” signal regarding a rally to new highs. That said, new positions could be opened above $16, after the higher low that the currency formed on Sunday.

Monero

XMR/USD, 4-Hour Analysis

Monero remains among the weakest majors short-term, as it still failed to rally above the prior correction low, despite the broad-based bounce so far this week. The coin is now back to the key base formation, above the $32 level, but short-term should wait for a move above $36 before and a higher low to form.

NEM

NEM/BTC, 4-Hour Chart Analysis

NEM has been showing some relative strength compared to its closest peer, Ripple, recently, but it remains in a declining long-term tredn compared to Bitcoin. The coin is getting close to the major trendline after this week’s rally, and a move above 0.000066 would trigger a long-term buy signal after forming a low neat 0.00005 last week.

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