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Technical Analysis: Bitcoin, Ethereum, Bitcoin Cash, Litecoin and Ripple

Technical Analysis: Bitcoin, Ethereum, Bitcoin Cash, Litecoin and Ripple

Disclaimer: This article contains technical analysis, which is a methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. The content presented in this article is the opinion of the author. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence and consult with a financial advisor before making any investment decisions.

Cryptocurrency markets continued the bullish trend this week with an almost $40 billion increase in market cap at one point. Over the weekend, however, a strong pullback occurred leaving the overall market cap around $430 billion. This week, we will use technical analysis to look into the current price action of Bitcoin, Litecoin, Ethereum, Bitcoin Cash, and Ripple.

Disclaimer: This article is not meant to constitute trading/investment advice. Please use extreme caution when trading any cryptocurrency.

Bitcoin (BTC)

Bitcoin made a run for $10,000 but ran out of steam around the $9990 area.

In the short term, $10,000 will be a key resistance level, but if Bitcoin definitively breaks that level it looks to be on its way to the red resistance area. Using past information, the chart shows Bitcoin has rejected the red area several times.

Using our indicators, we see a similar scenario to last week on the 1D BTC/USD chart. The lagging span is about to break out from the cloud, and the latest candle looks to be bouncing directly off the Tenkan-Sen. RSI is somewhat overbought, with slight bearish divergence.

Ethereum (ETH)

Ethereum blew right through the highlighted resistance level last week after breaking out of the cloud. This week, it sits on top of the level. After resistance levels are breached, they often turn into support levels. Keep an eye out for the price action over the next few weeks to look for bounces off the area.

After making a major move out of the cloud, Ethereum is heading towards the Tenkan-Sen. The Tenkan-Sen was sloping upwards indicating high momentum in the market, but it is currently flattening out.

Bearish RSI Divergence on the 1D ETH/USD.

Litecoin (LTC)

Litecoin looks similar to last weeks chart after making around a 10% move. It tested a local resistance level but turned away. Expect retests of this level in the coming weeks.

Litecoin turning away from resistance zone between $170 and $190.

Adding Ichimoku Clouds, we see Litecoin is close to exiting the cloud. The lagging span is somewhat close to the current price which shows that the trend isn’t very strong. Over the next week or so we should be able to tell how strong of trade signal this cloud break will be.

Little to no bearish RSI divergence on the 1D LTC/USD chart.

Bitcoin Cash (BCH)

Bitcoin Cash was one of the weeks largest gainers, seeing a 35% increase. It is towards the top of a resistance level, and if it makes a significant breakout of the range, it could see even more upside.

Using Ichimoku Clouds, we saw three signs of entry.

  • Cloud Break
  • Kumo Twist
  • Lagging Span exists cloud above price
Bearish RSI Divergence after a large move up.

This trade has already seen most of its gains after going up $400 in a week. You can spot RSI divergence with the drawn diagonal lines. Price is making higher highs while RSI is trending downwards.

Ripple (XRP)

Clear local support level at the $.45-$.55 level.

Despite Ripple being hit with a class action lawsuit, its price has been holding up well. Ripple is finding itself back at the $.85 cent level that we saw back in late February.

Adding RSI and Ichimoku Clouds to the picture, we see some key information. The cloud recently flipped bullish which is a great sign considering price also broke outside of the cloud. Depending on if the lagging span breaks out as well, you could make a trade here and catch some upside. There is some bearish RSI divergence which can be a red flag, but this trade is still developing.

RSI Divergence spotted. Price is moving sideways, while RSI is turning bearish.

Conclusions

Many of the above examples show signs of bearish RSI divergence. Bearish divergence occurs when an oscillator such as RSI is making lower highs, while the price is making higher highs.

It is possible that the market is pulling back slightly after a very bullish week. Technical analysis is not always correct, and should only be used to make more educated guesses on your trades. A combination of both fundamental and technical analysis should be used to ensure more successful trading.

Cover Photo by Jeremy Thomas on Unsplash

Posted In: Technical Analysis, Trading

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Austin Tuwiner

Austin is an avid cryptocurrency investor studying computer science and software engineering at Towson University. His hobbies include researching cryptocurrencies, travel, and rock climbing. His goal is to help the average person understand and get into into cryptocurrency.

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Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.