With Bitcoin on the cusp of reclaiming the $30,000 level I thought this week it would be a good time to look purely at the technicals for Bitcoin and also a selection of altcoins that I currently find interesting.
Altcoin have really underwhelmed during the past few weeks, however, I am almost certain the trigger point and leading signal to start to buy altcoins will be multi-day stabilization above the $31,000 level.
This is what technical analysts are looking for as a major signal. If this is the case ETH, BCH, LINK, and dare I say LTC could all do very well.
Source: Tradingview.com
Starting with BTC, and the road is paved for $35,000 if we see 2 or maybe 3 daily closes above the $31,000 level. Maybe we even need a weekly close above this really important level to cement a breakout.
Source:Tradingview.com
Personally, I think if the spot ETF is approved Bitcoin could reach the loft heights of $42,000 this year, and then correct somewhat in 2024 before lifting off to new highs.
Since BTC broke above the wedge pattern BTC has been on its strongest two-day price ramp since the early summer. Only a daily close back under $28,400 can dampen bulls spirits.
The curious case of ETH continues to baffle traders as it languishes around the $1,600 level while BTC trucks ahead.
Source: Tradingview.com
However, I am still positive towards ETH and I think we could easily see a challenge coming to $2,200 if bulls can start to take control of the $1,750 area.
Source: Tradingview.com
As seen in the attached charts a number of wedge patterns are building which really depicts a strong technical breakout at $1,750 and then $2,200.
Chainlink is super interesting at the moment, I think a 100% rally is entirely possible if we see a clear technical breakout.
Source: Tradingview.com
The famous trading quote amongst technical analysts "the wider the base, the higher the space" truly comes to mind when I think of LINK/USD.
And then we come to a crypto that is really very much oversold, namely Litecoin.
Source: Tradingview.com
Litecoin is trapped underneath a wedge pattern right now and has very little momentum to be a strong buy both technically and fundamentally.
There are three good reasons to watch Litecoin. One is a close correlation to Bitcoin, two is the fact it is close to being its most oversold since 2019 and thirdly, massive bullish divergence.
Source: Tradingview.com
As you can see from the attached chart the nasty dive from the $110.00 level fueled plenty of bullish MACD price divergence.
Source: Tradingview.com
And finally, we come to Ripple. XRP is a real wild card, especially if we see a positive outcome from the SEC case.
Simply put, a multi-year trendline breakout would cause a technical earthquake with nothing less than $1.50 in bulls sights.
Source: Tradingview.com
In case you wondering, the trendline breakout comes in around the $0.8500 area.
Overall, I hope you enjoyed this week's purely technical look at the crypto market. A big upside breakout could well be nearing for the entire market.
