Daily Technical Analysis: Bitcoin, Ethereum, Litecoin

Bitcoin, Ethereum, and Litecoin are currently the three of the most heavily traded coins traded in the cryptocurrency market. They are collectively considered by many market participants as a sort of “bellwether”  for the rest of the cryptocurrency market, especially Bitcoin. As bitcoin goes, so does the rest of the crypto market. So it comes as no surprise that the price action of the three seems to move in tandem. For traders, this is a good thing. It serves to give an alert when a potential move is coming and to confirm the mood and sentiment of the market. Keeping a close watch on all three is a good market analysis technique.

 Bitcoin (BTCUSD)

Bitcoin continues to consolidate around the $11,100.00 level. Bitcoin’s price action is showing signs of uncertainty as asymmetric triangle price patterns are manifesting themselves in the price charts indicating indecision by traders and investors. The Daily chart below shows the asymmetric triangle price patterns in purple. The chart also shows the 9-day average that has been flat for the lasts 4-days, further indicating that the direction of the bitcoin market is currently in flux as traders are wavering on whether to get back in on the long side and catch the next upward move, or avoid the downside risk of Bitcoin dropping even further.

Chart#1 Bitcoin Daily

It goes without saying that there are a great many traders/investors that missed the first runup of Bitcoin to its all-time high near $20,000, and don’t want to miss the next runup (if there is one). However, at a price of $11,100.00, there is a substantial amount of downside risk. In this case, timing is of the essence. The savvy trader will be patient and wait for the price to break above the triangle pattern, for the 9-day moving average to turn upward, and for volume to begin to surge.

Ethereum (ETHUSD):

Ethereum is exhibiting much of the same type of price action as Bitcoin. The chart below for Ethereum shows the 15-minute intraday price action. The asymmetric triangle price pattern is even more pronounced in the intraday chart as price action reaches the apex of the pattern. Volume patterns are also beginning to show signs of shifting to a more bullish sentiment as upward price movements are accompanied by volume surges.

Chart#2 Ethereum 15-minute

The triangle price pattern will be completed in the next few days. The savvy trader will wait to see which way price breaks out of the pattern and react accordingly. All indications are that Ethereum will break—out to the upside.

Litecoin (LTCUSD):

Just like Bitcoin and Ethereum, Litecoin is experiencing similar downward pressure. It is also exhibiting a triangle price pattern on the daily price chart, but unlike Bitcoin’s and Ethereum’s pattern, this pattern is a descending triangle, indicating a tendency for downward price movement.

Chart#3 Litecoin 15-minute

The horizontal lower line for the triangle pattern at $180.94 is holding strong, and volume and daily range have been very weak over the past 5-days, as shown in the 15-minute chart above. Although Litecoin is displaying a downward bias from a technical perspective, the potential for an upside move is just as likely when considering the price action for Bitcoin and Ethereum for which Litecoin trades in tandem with. The triangle pattern has reached its apex, however, an upward breakout move will not be confirmed until price exceeds the resistance level at $209.67.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of coinmarketcap.com