Technical Views on Cryptocurrencies

12 March 2019

Exhibit 1: Monthly chart of Bitcoin on Log-scale

BTC Monthly (CMP: $4003)

After the debacle of 2018 and especially the big fall towards end of the year, Bitcoin is trying to consolidate. An extremely interesting observation of Exhibit 1 is that the over 80% depreciation in prices of BTC in the past year does not appear that threatening when viewed on logarithmic scale (which portrays equal % gains/losses in equal height of vertical scale).

Two further observations from Exhibit 1 are worth mentioning. Firstly, prices are not making lower bottoms & secondly, for the first time in many months, February saw a higher high than previous month. Both observations obviously convey bullish messages.

Exhibit 2: Bitcoin on daily chart on log-scale with Bollinger Bands

The daily chart reveals a strong resistance at $4220 regions. Price actions are slowly assuming an ascending triangle pattern & higher bottom formations are quite evident. This suggests a possible breakout in upside. Another important observation is the diminishing width of Bollinger Band breadth which further reinstates a bullish breakout scenario. The immediate support for Bitcoin is at $3818 regions.

Exhibit 3: daily Chart of Litecoin

Litecoin/USD (CMP: $55.90)

In the face of adversity, when most other crypto pairs are struggling to hold their respective previous bottoms, Litecoin is a welcome relief, for it is showing a primary uptrend in all sense & thus outperforming its peers by a wide margin.
LTC has given a return of nearly 250% since its December bottom was established at $22 regions. There is lately strong upward momentum in LTC and buying-on-pull back could be a strategy worth following in this crypto, given the supports at $52 and $46 to be used as stop loss.