Bitcoin, Ethereum & Litecoin Weekly Key Reversals Point to Rebound
Cryptocurrency Technical Highlights:
- Bitcoin posted a big key-reversal bar on the weekly time-frame
- Ethereum did similar, remains the strongest of the group
- Litecoin reversal from support brings attention on December trend-line
See trader positioning in Cryptocurrencies and what it might mean – IG Client Sentiment page.
Bitcoin posted big key-reversal bar on the weekly time-frame
We noted towards the end of last week that cryptocurrencies were on the verge of putting in key reversals on the weekly time-frame if they held up through the week (ending yesterday). However, they will need to break through resistance to make good on those bullish events.
Bitcoin is already near resistance around 9222, the January spike-low, and the trend-line from last month. A break through both of these hurdles could have Bitcoin finding a resurgence of buyers for a larger rebound to unfold back towards 11.5-12k, or better.
The lower end of that targeted zone would wipe out the last leg lower from the triangle proceeding the sell-off, a common occurrence after these types of technical patterns lead to a strong move and reversal.
The broader outlook remains, though, despite the possibility of a rally; lower prices look likely as the mania continues to move in reverse. However, this won’t happen in a straight line and with volatility high there will be plenty of trading opportunities for both sides of the market.
Want to learn more about cryptocurrencies? Check out this guide, Introduction to Bitcoin Trading
BTC/USD Weekly Chart
BTC/USD Daily Chart
Ethereum does similar, remains the strongest of the group
Ethereum continues to act the strongest of the group, and if we see a broader surge higher it could rally back relatively close to its previous high before turning lower again. With a little more strength, it will soon test the underside of the November trend-line. Beyond there, look to the trend-line off the high near 1100.
ETH/USD Weekly Chart
ETH/USD Daily Chart
Litecoin reversal from support brings attention on December trend-line
Litecoin traded just below the June spike-high and 200-day MA before putting in what amounted to a near double-bottom (close enough). The weekly doji candlestick has it pointed higher, but also very near the trend-line off the December high. A breakout above should help propel Litecoin higher, with 200+ targeted.
LTC/USD Weekly Chart
LTC/USD Daily Chart
Whether you’re a new or experienced cryptocurrency trader, we have several resources to help you;Introduction to bitcoin trading guide, indicator for tracking trader sentiment, and a weekly webinar discussing the latest developments.
---Written by Paul Robinson, Market Analyst
To receive Paul’s analysis directly via email, please SIGN UP HERE
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.