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Technical Analysis: When Bitcoin is ranging, it’s time turn your gaze to long-term trading zones for altcoins

This week, Marco Bozza takes a look at a few large market cap altcoins and charts a long-term plan of their potential future trading zones.

Written by Marco Bozza Published on

Yesterday’s Bitcoin’s price was simply ludicrous: the range low (~$6100 USD) and the range high (~$6550 USD) were both tested within an hour of one another. Regardless, if you still had more of your bids between $6200 USD and $6120 USD, you could have played the entire range within the super volatile hour! This price action, however, is a clear indication that the Bitcoin market is still ranging, with bulls or bears able to gain momentum just yet, even if we are still exploring the bearish Weekly engulfing. As traders, the best time to plan is when the market gives you a gap in which to do it, and a ranging market is perfect for that. Like Tuesday’s article,  this week we’ll be charting some high market cap altcoin charts for another long-term planning overview.

Litecoin (LTC/USD)


LTC Long Term trade plan by Pansyfaust on TradingView.com

Litecoin has the benefit of having historical depth, so the long-term zones do jump out when one zooms out. The chart depicts several key support (Green rectangles) and resistance zones (Red Rectangles) based on prior highs and VPVR activity. Currently, we’re teasing an important long-term level: the prior 2013 bubble high for Litecoin between $40 and $54 USD (depending on the exchange used). Depending on wider market sentiment, this level could form a good base on which to stack up on Litecoin. However, should this level fail, future support zones are at $28 ~ $25 USD and at the extreme end, $8-$12 USD. Resistance zones to take profits on longs from this zone would be between $75 and $90 USD.

Ripple (XRP/USD)


XRP Long Term Trade Plan by Pansyfaust on TradingView.com

Although a few alts bounced with Bitcoin yesterday, not many of them maintained their gains once Bitcoin volatility subsided, save for XRP. A reason for this stronger bullish XRP day could be in anticipation for the Ripple Swell event on the horizon. Or it could be because we are at strong prior resistance turned support with a double bottom pattern playing out at ~0.25$ USD. Sometimes a blend of fundamental analysis is just extra fuel for the technical analysis! Our next zone to look out for is the $0.45-0.5$ USD, which is a strong resistance to take some profit on any longs acquired in this support zone.

EOS (EOS/USD)


EOS Long Term Trade Plan by Pansyfaust on TradingView.com

This coin has a particular level that has acted as support and resistance throughout the whole year: the Yearly Pivot point at ~$7 USD. It’s acted as an important trend confirmation level (bullish if above, bearish if below), and I see no reason why it cannot play that same role going forward. However, should EOS bearishly move away from the Pivot and break its trendline support, zones to buy would initially be $4 USD, however, if that zone breaks, expect a quick drop to the next zones between ~$3 USD and $2 USD.

Monero (XMR)


Long Term Trade Plan XMR by Pansyfaust on TradingView.com

Monero is one of the few coins around that has managed to be one of the better-performing alts this bear market. We can see that XMR has pushed into its prior consolidation zone on the run-up to its all-time high, between $100 and $80 USD, and has managed to hold its own relatively well independently of Bitcoin. If you are long XMR and looking to exit, $150 USD is the first zone to take profit, with $220-$240 being the uppermost take profit zone. However, if we break below $80 USD, our next longing zone would be between $60 and $50 USD, and potentially $30 USD.

Larger altcoins still correlate with Bitcoin to a large degree, often dumping harder when Bitcoin dumps and pumping harder when Bitcoin pumps. Keep in mind that Bitcoin is the wider market “sentiment” indicator—so when Bitcoin does well, it’s like the rising tide: it raises all the altcoin ships. The reverse is also true, as many altcoin holders discovered in 2018.

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Written by

Marco has been involved in cryptocurrencies since late 2013, a part-time cryptocurrency trader since 2016 and has transitioned into full-time cryptocurrency trading in 2018.

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