Altcoin Analysis: Weekend Positive for Bitcoin and Heading Altcoins, Ethereum Grew by 13% Overnight
February 18, 2019, by Marko Vidrih on ALTCOIN MAGAZINE
After Friday ‘s positive movement in the crypto market, we see that the Bitcoin price and most Altcoins come out of the weekend positively. Most positive movement showing ether today.
1.5 weeks have passed since the last surge in Bitcoin volatility, during which the coin rate was in the narrow range of $3,528- $3,659 until today. At the Asian session, the BTC-USD pair strengthened well, demonstrating an upward trend over 7 hours. According to MACD, there is a slight overbought, RSI indicates the growth of the BTC-USD pair, as well as the sliding Alligator. We believe that in the medium term we can expect an increase in the value of BTC to $4,000- $4,600. We offer to consider purchases from the current position.
Litecoin which was marked by bilateral dynamics last week has managed to win back Monday’s losses by today’s trading. Today, the LTC-USD pair is trading in a narrow range of $41.47- $43.16 in the direction of $45 resistance. In case of recovery of the crypto-market as a whole, we expect an acceleration of the upward dynamics from Litecoin and resistance testing in the medium term. MACD and Alligator also indicate a pair is growing. Consider buying on the rebound from $37 resistance with a $38 mark.
Ethereum, after a week of consolidation before the rest of the coins, resumed steady growth, forming support in the $117 region. Over the past 24 hours, the price of Ethereum has grown from $124 to $146. Analysts foresee a strong short-term recovery in the future, as the cryptocurrency demonstrates a strong upward momentum.
Optimistic price movements of major crypto active assets, such as Ethereum, EOS, Bitcoin Cash and Binance Coin, occurred during a period when sentiments regarding short-term cryptocurrency market indicators became noticeably gloomy.
Is it possible to fully restore crypto market?
On February 17, before a recent rally in the cryptocurrency market, a trader with the nickname “Mine” stated that investors cannot work only on the basis of past market results.
“We’ve had some bullish moves on $ETH, $BTC, and $alts over the last 2 weeks. Is the bear market over? Maybe, the fact of the matter is we are going up Traders must see PA for what it is and can change bias quickly. If you have been stuck with a bearish lense you are missing out” tweeted the trader.
Over the past few months, Bitcoin and the rest of the cryptocurrency market have shown similar patterns; Bitcoin showed weeks of stability and subsequently fell by 5–10 percent.
But while the historical performance of crypto active assets is positive, it does not guarantee future performance.
Since the beginning of February, for more than two weeks, cryptocurrencies have fixed a long period of stability.
Since the cryptocurrency market has experienced long periods of low volatility in the past few months, and each of them has led to a fall in the cryptocurrency market valuation, many traders expected this trend to continue.
However, on February 18, caused by a sharp jump in prices for Ethereum, the cryptocurrency market began to recover and eased significant pressure from the market.
Previously, a cryptocurrency technical analyst, known as DonAlt, stated that Ethereum is in a favorable position to outperform BTC at any time period.
After a 12% jump in Ethereum prices, DonAlt added that the movement was controlled, and now it is at a key resistance level.
Carefully expecting Ethereum to break through important resistance levels in the near future, DonAlt said:
“Well, this is a real rally. Not a big surge in volume, and with this a good controlled climb. I did not expect such a large number of actions at the weekend, but I do not complain. ETH as the best gainer on BitMEX. The price is now right at the resistance and it will be interesting if it can pass it or not.”
Altcoins showed good results
Although alternative cryptocurrencies historically exceeded Bitcoin, when the dominant cryptocurrency demonstrated lateral movement, the amount of profit shown by tokens surprised investors.
Tokens, such as Basic Attention Token, Bancor, Golem, and Maker, have recorded growth in the range of 8 to 12% against BTC and the US dollar per day.
If the main cryptocurrencies continue to go beyond the long-term trend lines and show positive technical signals, the digital asset market may show a rally of corrective growth during February.
However, traders remain cautious in declaring the bottom of the cryptocurrency market due to the lack of daily volume and the inability of Bitcoin to exceed key resistance levels.
Author: Marko Vidrih
Charts by TradingView