Weekly Cryptocurrencies technical outlook - January 7.

The vast majority of popular cryptocurrencies remained almost flat last week. The overall market momentum shows that the recent bear market is set to find a local bottom. Some of the coins even managed to gains some strength though. Litecoin was the leader, adding 18.25% in the past seven days, TRON and Etherium were trying to follow the leader, growing for 14.34% and 11.58% respectively. The largest cryptocurrency in the scope of market cap - Bitcoin - did not have any significant changes in the value. Stellar (-2.92%), Ripple (-2.05%) and Bitcoin Cash (-0.96%) were among losers. Etherium made a significant jump in total market cap with trading volume of $16.09B, while Ripple was the third most heavy-volume traded cryptocurrency with $14.67B weekly result. Thin trading conditions were mostly influencing the lack of investors’ activity in the cryptocurrency market due to the holidays period. We suggest that the upcoming week should bring a lot of surprising results and a couple of coins is really attractive for buying in the short-term perspective, as the technical outlook points to a potential breakthrough in the uptrend.

LTC/USD: Bullish.

Litecoin was the strongest cryptocurrency in the first week of 2019. There is a huge potential for Litecoin to accelerate the uptrend and here is why. First of all, LTC/USD approached the 89-days simple moving average ($40.2986), the first time since November 5. The peak of the price was charted around $39.8000 at the time of writing this outlook, 1 PM GMT on Sunday. Another meaningful resistance is placed here currently - the Ichimoku Cloud’s top of the span ($39.7465). If the daily close price managed to break through both levels, that would be a powerful signal for the bulls to accelerate the momentum. The latest appearance of Litecoin price above the Ichimoku span was noticed in February 2018 (false break) and in January 2018, when the cryptocurrency bloodbath crashed the market. Our point is that if the Litecoin bulls managed to push the price above the cloud in a sustainable manner, then we would observe a surge which could be compared with the latest cryptocurrency boom. The span itself has almost performed the bullish cross pattern, and both its lines have entered the cloud, which points to a potential bullish reversal pattern to complete in the nearest term. However, a conservative technical analysis suggests that such a strong resistance level would not be broken with the first attempt and we might observe Litecoin bounce South towards conversion line ($35.1785) or even baseline ($31.3220) Ichimoku supports. That range should be considered as a buying opportunity for long-term crypto investors. Anyway, the blue dotted median magnetic line, connecting the bottom on November 25 with the top on December 25, should attract LTC/USD price in the long-term perspective.

Weekly Cryptocurrencies technical outlook - January 7.


TRX/USD: Bullish.

TRON charted several significant technical achievements on the daily timeframe. The coin had not only entered into the same sideways range that had been noticed in the period of August - November 2018 but also breached the 133-days exponential moving average after two failed attempts. Bearish pullbacks, which followed the unsuccessful tries to breach the long-term resistance curve, were not so deep, signalling the market’s intentions to drastically change the technical outlook for TRON and come back to the bull market. The next target is placed at the top horizontal static resistance - the upper line of the same range - $0.027008. Once breached - the double-top prices since July 2018 would be in play for the TRON bulls. Daily fast oscillators - Willams %R and RSI - almost entered the overbought territory, showing the strength of the bullish momentum. Nevertheless, both indicators are still far from peak values, leaving enough room for the long play before a potential bounce. The buy-and-hold trading strategy should be the best choice for the upcoming week.

Weekly Cryptocurrencies technical outlook - January 7.


ETH/USD: Bullish.

One of the most attractive cryptocurrencies is Etherium nowadays, from the technical point of view at least. ETH/USD tested the long-term descending resistance trendline (green dotted on the daily chart below), peaking at $167.00 on Saturday. What’s interesting is that the same horizontal static line used to work as the support on September 12 last year. We suggest that it’s just a matter of time to break through this resistance, given the recent bullish momentum (+84% from the latest bottom on December 14, in three weeks). Another confirmative sign is coming from the bullish bounce off the 21-days exponential moving average (exactly as we predicted before), which has been used by Etherium buyers to enter the market on December 27. As long as the support curve is rising rapidly, we do not think that ETH/USD would drop far from the latest top of the market. A test of the support cannot be excluded though, and conservative traders should use that moment as a perfect entry point to buy the cryptocurrency. Aggressive traders should consider placing buy-limit orders slightly above $167.00 level, using breakthrough trading strategy. Talking about the nearest targets, we would highlight $191.16 - the lowest close price in October 2018, and $225.12 in extension. However, a short-term consolidation is possible as some of the fast technical indicators need to be reloaded before the bullish run, accumulating enough liquidity for the breakthrough scenario. EMA21 also needs to get closer to the descending trendline or even cross it, which would be an additional confirmation.

Weekly Cryptocurrencies technical outlook - January 7.


BTC/USD: Neutral.

Bitcoin price failed to hold gains from the last week of 2018, sliding to a local bottom of $3700.0. The last week’s price action was in the tight sideways consolidation range, signalling uncertainty among crypto investors. Moreover, the ascending channel, which has been formed by consecutive higher lows, has been also breached. BTC/USD needs to overcome the nearest blue dotted line before the technical sentiment would turn back to bullish. The price of $4100 is still a tough nut to crack for Bitcoin bulls, and there is no background to talk about further achievements until that level holds BTC offered. A positive sign was that the range has been narrowed, which could signal a potential bullish spring. However, we would recommend staying out of the Bitcoin market unless the technical picture cleared or a powerful trading signal occurred.

Weekly Cryptocurrencies technical outlook - January 7.
See also:
Weekly Forex technical forecast January 14 - 18.
Weekly Forex technical forecast January 14 - 18.
14.01.2019
Technical analysis