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(+) Long-Term Cryptocurrency Analysis: A Major Peak Could Be Reached

This week is likely to go down in the history of the cryptocurrency segment, whether or not we have seen a lasting high, given the epic Bitcoin rally above the $ 10,000 level. The commercial frenzy of the recent period looks like a peak that could be the starting point for a deep and lasting correction.

That said, with the increase in short-term trends still intact, and as the coins are getting more and more attention from mainstream media, it's possible that the exact top is still in head. What is sure is that there will be much better buying opportunities, and that the risk of correction has not been higher.

BTC's price once again crossed the threshold of $ 11,000, coming close to Tuesday's all-time high after setting close to $ 9,000 during the mid-week correction . Below that, the coin has significant support near $ 8200, $ 7,700, $ 6,700 and $ 6,000. The extremely overbought momentum readings indicate a deep correction in the coming weeks.

BTC / USD, Daily Graphical Analysis

Litecoin was the largest major altcoin, with Dash and IOTA, and LTC is trading just below the $ 100 level this weekend. The piece is also in a very tense long-term setup, and we are not expecting new highs of all time in this cycle. Strong support is near $ 75, $ 64 and $ 56

LTC / USD, Daily Graphical Analysis


ETH / USD, Daily Card Analysis

The Ethereum breakaway stopped just at the $ 500 level within the Bitcoin-Frenzy and the second largest coin followed the BTC during the volatile breakout and the next rebound . The coin is not very overbought, but we expect a correction at the segment scale, although the ETH is expected to outperform during this period. Below break level at $ 400, there is $ 380 and $ 350.

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XRP / USDT, Daily Graphical Analysis

Ripple is still lagging among the majors in a long-term perspective and the play has followed the wild moves of the week into its long-standing trading range. The currency is wedged between key levels of $ 0.2250 and $ 0.26 this weekend, and it is still neutral on all timing regarding dynamics, while staying on a buy signal. Support is still just under $ 0.20, and $ 0.18, while additional resistance above $ 0.26 is found at $ 0.30


DASH / USD, Daily Chart Analysis

Dash resists very strongly in the middle of the volatile correction, proving his apparent relative strength once more. That said, the room is clearly overbought, and although we expect it to remain strong in the coming months, a deep correction is likely. Key support levels are still just over $ 600, $ 500, $ 470 and almost $ 410.

Classical Ethereum

ETC / USD, Daily Graphical Analysis

The November rally of the Ethereum Classic was one of the strongest among the majors and the 200% gain led to an extremely tense long-term setup. The initial correction of the coin brought the previous record back to almost $ 23, and we expect this level to be exceeded in a future downturn. Additional support is found at $ 18 while the historical high is ahead as resistance at $ 32.


XMR / USD, Daily Graphical Analysis

Monero reached our final target for his break-out this week, and he's already tested the break-out level again in the next fix. The coin remains in a short-term uptrend despite the oversold long-run momentum readings, but we expect further price corrective action before a higher major move with support levels at $ 180, $ 150 and $ 125.

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IOTA / USD, Daily Chart Analysis

IOTA skyrocketed to $ 1.50, above expectations after surpassing the $ 1.1 resistance. The coin remained strong in the second half of the week, though it was the biggest over-bought with BTC and ETC. Investors and traders should wait for the next correction to enter new positions, with key support levels at $ 1.1, $ 1 and $ 0.75.

How to use these graphics?

As we pointed out in our article on Bitcoin: "… not all strategies are binary (holding or not an asset) .There are many strategies for investing and trading at long and short-term in a bull market like the crypto-currency segment, but mixing calendars and mixing trading and investing (see our article on the subject) could lead to problems. "

Here is a reminder of some possible strategies:

  • Buy and hold, without worrying about daily (or even month-month) fluctuations
  • Buy and maintain a basic position and add to the main troughs; a very powerful strategy
  • Buy a certain amount every week or month, and standardize your price of entry, without the hassle of timing the market
  • Try to catch major turning points to reduce and "revive" your position
  • Trading short-term movements with stop-loss, targets and strict risk management (this is not trading) "

Image from Shutterstock to photo

Disclaimer: The analyst has cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term trading or trading in the market, nor does he hold short positions on any of the coins.