Following the dip in market capitalization from $800 billion to $300 billion, the cryptocurrency market has bounced back to over $400 billion.
The technical analysis of the leading cryptocurrencies in the trading market, Bitcoin, Ethereum, and, Litecoin will be discussed in this piece.
Technical Analysis of Bitcoin from the One Day Chart
The Bitcoin one day chart shows diagonal trends which represent changes in direction. Currently, the BTC/USD pair shows a bullish trend. There was a prominent downward trend in the price of Bitcoin since it reached its all time peak of $19800. However, this trend was broken in mid-April.
There is a support level around $6600 and Bitcoin has successfully bounced off this range on different occasions.
Technical Analysis of Litecoin from the One Day Chart
Just like Bitcoin, Litecoin has suffered a downward trend and recovered as well. The one day chart indicates a horizontal support level of about $105 and a resistance level of about $230. The next few weeks will determine if Litecoin will bounce of these trading levels.
A significant part of Litecoin’s technical analysis capitalizes on trends. However, a divergence is yet to be seen.
Technical Analysis of Ethereum from a One Day Chart
According to the one day chart, Ethereum is showing a local support level of $350 and a resistance of about $700. If there is a break out of the red area, Ether investors will be full of jubilation as this will be significant to Ether’s progress.
Under the cloud, there was a TK cross which is a good sign of a bright future for Ethereum even if it wasn’t too significant. The skinny cloud recently took a bullish twist indicating that a breakthrough is on the horizon for Ethereum.
Technical analysis aren’t guarantees of the future of cryptocurrencies as these digital assets are highly speculative. However, traders can use a combination of fundamental and technical analysis to make profitable trades.