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The market has taken some tentative steps above various downtrends. Volumes are a little uncertain so far, except for Bitcoin Cash whose bulls have taken the lead. Is this the beginning of the end of the doldrums? Possible. Moonboots on...

Bitcoin

BTCUSD daily chart (Bitfinex)

Chart 1: Bitcoin daily (Bitfinex)

BTC has ventured above its downtrend, the small rally halted by the 50 day moving average (blue). MACD has swung positive so the ball is in the bulls' court. RSI remains non-committal, a possible turning down at the 50 line being cause for caution. Volumes are slight for the moment.

A break above the 50 day MA would bring the 200 day MA into focus at around $7100-$7120.

TLDR: Promising first steps, but not a home-run yet.

BTCUSD daily chart (Bitstamp)

Chart 2: Bitcoin daily (Bitstamp)

The recent Tether panic has caused some chart differences between the different exchanges. Nowhere is this clearer than comparing the attempted breakout between Bitfinex and Bitstamp – on the latter we're arguably still under the downtrend – although with the other cryptos busy breaking out (see below), I'm doubtful this represents true average sentiment.

Ethereum

ETHUSD daily chart

Chart 3: Ethereum daily

Recent action consolidated into a triangle from which last night's move broke north. Resistance (green) and the 50 day MA (blue) are headwinds. Volume reasonable. With MACD crossing bullish and RSI above 50 this is looking hopeful.

The vicious Ethereum selloff has caused the 50 day moving average to be miles away from the 200, so potential short-term upside on a breakout above the 50 day is quite dramatic - $293, $325, $370 resistances and the 200 DMA around $400.

Note, this is a Bitfinex chart, but the other exchanges are all within around 1% of the same pricing.

Ripple

XRPUSD daily chart

Chart 4: Ripple daily

The huge Ripple volatility in late September has made it a bit of a head-case to chart. There's a possible triangle which I've added, from which last night's move becomes a breakout. Either way price is just under the 50 day (blue) and resistance (red dashed) so plenty of challenge for bulls to get their teeth into. MACD has crossed bullish.

The 200 day moving average is just above at $.506-$.509 so that's the next hurdle.

Interestingly if the uptrend continues as-is, the 50 day moving average is threatening to cross the 200 in around a week's time. This would give us what we've all been waiting for – a golden cross to finally cancel the death crosses we saw at the start of the bear market.

That's when things will really heat up. Could XRP lead crypto sentiment back into a bull market? It wouldn't surprise me.

Litecoin

LTCUSD daily chart

Chart 5: Litecoin daily

LTC volume on the breakout from the downtrend is reasonable, MACD crossing bullish. There's a ton of resistance just above including gap resistance (yellow/green) as well as the 50 day moving average (blue), so a lot of work for bulls to do here.

First target on a break above these would be $74, with the 200 day MA up around $84 as T2.

Bitcoin Cash

BCHUSD daily chart

Chart 6: Bitcoin Cash daily

I mentioned a couple of weeks ago on the BCB live TA Whatsapp channel (available to clients, please ask) that the BCH wedge looked the most bullish of all the main coins since it was at a steeper angle. Well BCH hasn't disappointed, and this is by far the most convincing breakout here. Volume is excellent, and the move broke the 50 day MA confidently. We're at former gap resistance (yellow dashed) here and overbought, so a pullback not unlikely - but this is still a great looking chart for bulls.

Target 1 is just above us at around $600. T2 is $700 and T3 is the 200 day MA at around $778.

DISCLAIMER
BCB Group has no position or opinion on the price of Bitcoin or any other cryptocurrency and this article should not be construed as analysis of or advice regarding the current or future market price of Bitcoin or any other cryptocurrency. No analysis of the price movements of BTC or any other cryptocurrency or any other asset provided by BCB Group should be construed as an invitation or inducement to buy, sell or otherwise to trade BTC or any other cryptocurrency.

Jon Cotton

Jon Cotton

Strategy and Execution Partner

Jon is BCB’s head strategist, with an emphasis on market intelligence. An expert in behavioural science and highly experienced chartist, Jon has been providing BCB’s clients with crypto and macro technical analysis since 2017, and has quickly gained a reputation for accuracy after correctly calling the December 2017 top and August 2018 bottom.

Jon is also MD of British music production company Poseidon. He began studying technical analysis in 2000 due to its overlap with behavioural economics – much used in Poseidon's international marketing work, which has seen the company achieve three iTunes US number one albums among other notable successes.