Four of the five of the coins included in last week’s list moved according to expectations. The crypto list was led by Qtum (QTUM/USD) after the market completed the conversion of a key resistance level into support. It is followed by Zcash (ZEC/USD) and Bitcoin Gold (BTG/USD). Both cryptocurrencies are very close to completing the retest of key support areas as predicted. Lastly, OmiseGo (OMG/BTC) remains in a clear bullish trend and it is still positioning to break out of an ascending triangle.
The only crypto that disappointed was Dash (DASH/USD). Instead of breaking out from an inverse head-and-shoulders pattern, the coin corrected and sapped all bullish momentum.
This week, we switch it up and look at altcoins and their bitcoin pairs. With the king of cryptocurrency looking bearish, this may be the week that other coins rally against bitcoin. Here are the five altcoins to watch this week.
Litecoin (LTC/BTC)
Litecoin continues to show its strength against bitcoin. The crypto regained its bullish momentum after breaching resistance of 0.0136 on June 6, 2019. This triggered the breakout from an inverse head-and-shoulders pattern on the daily chart.
Currently, the market is in overbought territory. Thus, we expect it to pull back in the next few days. If you want to open a fresh long position, wait for the retest of 0.0136 as support. As long as bulls maintain this support, our target is the recent high of 0.0182.
Ethereum (ETH/BTC)
Ethereum is looking like a ticking time bomb. From looking at the chart, it seems that it’s only a matter of time before bulls take full control of this market and send it to the moon. The crypto has been in range accumulation for about nine months now. This may be the week that it starts breaching key resistance levels.
A look at the daily chart shows that Ethereum is close to taking out the diagonal resistance that has kept the market bearish for most of the year. If you want to position for the expected move up, buy as close to 0.03 as possible. If bulls can preserve this support, they will annihilate the diagonal resistance and catapult to 0.041.
Bitcoin Cash (BCH/BTC)
Bitcoin Cash has been correcting ever since it posted recent highs of 0.067299 on April 3rd. However, it seems the corrective period is about to be over soon.
A look at the daily chart shows that Bitcoin Cash is painting a large symmetrical triangle on the daily chart. This structure is valid as long as the diagonal support is respected.
If you want to long the crypto, buy as close to support of 0.048 as possible. Bitcoin Cash will likely break out when it hits the apex of the pattern. If it moves as expected, our targets are 0.055 and 0.064.
Cardano (ADA/BTC)
After a scintillating March 2019, Cardano is back to range accumulation. It is now stuck trading between 0.00001 and 0.0000135.
The good thing about range trading is that most of the time it is predictable. For instance, we see bulls defend Cardano’s range low of 0.00001. With this price action, we expect the market to consolidate above this level for the next few days before it moves up to our range resistance of 0.0000135.
Buy the support; sell the resistance. That’s range trading.
NEM (XEM/BTC)
Our last pick for this week is NEM. We decided to include it on the list because its chart resembles that of Ethereum’s.
Just like Ethereum, XEM has succumbed to this large diagonal resistance for months. Nevertheless, the crypto has a chance this week to finally take it out. The key is for the bulls to put up a strong fight at the support of 0.00001. If they do, we can say goodbye to the diagonal resistance and say hello to the horizontal resistance 0.000015.
Bottom Line
Cryptocurrencies in their bitcoin pairs have been battered but they might come alive this week as bitcoin struggles to maintain its bullish momentum. The key levels to look out for have been mapped out. Use tight stops and all will be fine. Good luck trading altcoins this week.
Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.
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