Close
  • Loading ticker data...
Coin Prices →
Altcoin News

Top 6 Alt Coins by Market Cap: Are there signs of Decoupling from Bitcoin?

In the longest bear-run yet, Bobby explores how altcoins are performing against Bitcoin and what this could mean for the future.

Written by Bobby Atkins Published on

Top Trending News:

-Binance CEO says Amazon will have to issue its own crypto-currency. Zhao meanwhile wrote on Twitter:

 

-Litecoin has been on a trailblazer as of late in terms of price and fundamental news.  Charlie Lee, founder of Litecoin, tweeted, “We are now also exploring doing bulletproof MimbleWimble w/ extension blks.”

-In other Twitter news, Aliant announced that they will begin offering cryptocurrency processing free-of-charge to qualifying merchants that sign up for debit and credit card processing.  Bob Moore Auto Group has signed on with Aliant to accept Litecoin at their dealerships.

2019 has been the year of shaking out the weak hands and allowing the builders to…..BUILD!  Developers working on new technology are more focused on code and feel less pressure from skyrocketing prices.  Mark Novogratz believes that all the infrastructure being built in 2019 to cater the institutional herd will serve as a launching pad for the next bull cycle.  Tom Lee of Fundstrat who recently made an appearance on CNBC believes despite market sentiment Bitcoin is way undervalued.  Fidelity is progressing in building their crypto-currency exchange and custody solution as well as the much anticipated Bakkt platform hopefully launching in 2019.

Despite the positive fundamentals what does the technical picture tell us for the leading alt coins:

1. Ripple (XRP) Surveillance Report

Week 1 of 21 – Ripple (XRP) Surveillance Report by bitcoinbobby on TradingView.com

BEARS – have been successful squashing any short term rally attempts by the bulls in this descending channel. Every pullback has been defended by the bears. Selling pressure continues and evidence for this is when the 50 Day SMA (Orange Trend Line ) fell below the 200 Day MA (Blue Trend Line ) back on April 9th . This is known as a death cross. The fact XRP has been unable to confirm the 50 Day SMA as solid support since shows how much the bears are in control. If bears are successful in pushing prices below 26 cents this could ensue panic selling. We don’t feel XRP has reliable historical support from 2017 as the coin pumped so much in a short period of time. We feel more probable support would be a drop to the 161.8% Fibonacci retracement to around 17 cents. We feel there is enough of a risk/reward ratio to place a short if the bears are able to break below our short entry level of 26 cents.

BULLS – XRP bulls will not gain ground until a high volume event propels the coin above the 50 Day SMA as well as the top of the descending channel. We want to be conservative going long in this pronounced bear market and patience is the name of the game. Therefore, we are suggesting to wait to place any buy orders until XRP breaks above the channel at or around 34 cents at the time of writing. We will update this entry price as the market develops and possibly to lower targets if prices continue to dip. The 200 Day MA (Blue Trend Line ) is sitting around 39 cents. XRP has outperformed Bitcoin for several months but has not been able to decouple. As you can see multiple times it’s propelled above its 200 Day MA, but was not able to sustain the momentum. Until Bitcoin starts to make some real bullish moves XRP will remain overall bearish sentiment.

RSI – XRP has been a consistent RSI trade on oversold conditions since Aug 2018. Had you bought when RSI touched or dipped below 30 your average costs basis is still profitable. Or even better had you sold during the overbought levels or when the market began to reverse you would have profited with nice double-digit returns per trade.

Trade suggestion: We are not recommending any trades until there is more market clarity whether you are a bear or bull. Be patient for interesting prices.

2. Ethereum Surveillance Report

Week 1 of 21 – Ethereum Surveillance Report by bitcoinbobby on TradingView.com

BEARS – Back on April 10th, 2018 bears successfully completed the death cross where the 50 Day SMA (Orange Trend Line ) fell below the 200 Day MA (Blue Trend Line ). Since then Ethereum bulls have exhibited typical bear market behaviour. Desperate volatile pullbacks, but inside a descending channel . Selling pressure continues. If bears are successful in pushing prices below $95 a likely retest of the December lows of $80 is very likely. We also feel that a double bounce is unlikely at this level and that a break below $80 could ensue panic selling. There is little historical support from 2017 at these lower levels as Ethereum ballooned up from $13, but we feel more probable support would be a drop to the 161.8% Fibonacci retracement to around $31.88. We feel there is enough of a risk/reward ratio to place a short if the bears are able to break below our short entry price of $95.

BULLS – Bullish signs will not be evident until there is a high volume event that breaks above the 50 Day SMA, which is sitting at $123 at time of writing. Therefore, we are suggesting traders to wait until the bulls break above the descending channel at or around $127 at the time of writing. We will update this entry price as the market develops and possibly to lower levels. The 200 Daily MA (Blue Trend Line ) is sitting around $205. Any asset class that breaks above its 200 Day MA is a very positive price action that should lead to a long term positive sentiment and bullish trend direction. Until Ethereum breaks above and confirms this trend line as the support we will maintain an overall bearish sentiment.

Bullish Chart Pattern: A falling wedge pattern has been developing on the Ethereum chart since September 2018 and has been confirmed by multiple touches on the high and low. The falling wedge is marked by lower highs, however, the lower lows are decreasing in magnitude which signals the bears are starting to lose their grip on the market. This is normally traded as a reversal pattern at the bottom of a downtrend.

RSI – There is a positive divergence on the RSI daily timeframe but this doesn’t hold much weight. RSI confirms bearish momentum as it is well below 60.

Trade suggestion: We are not recommending any trades until there is more market clarity whether you are a bear or bull.

3. EOS Surveillance Report

Week 1 of 21 – EOS Surveillance Report by bitcoinbobby on TradingView.com

BEARS – EOS bears successfully completed the death cross back on July 14th, 2008. Since then EOS has been trading in a descending channel. Every pullback has been met with a fierce defence by the bears. Despite this, EOS has been one of the altcoins that has outperformed since the market capitulation back in December. If bears are successful in pushing prices back below $1.95 this could ensue panic selling. We don’t feel EOS has reliable historical support from 2017 as the coin rallied from 30 cents to over $12 in a short period of time. We feel more probable support would be a drop to the 161.8% Fibonacci retracement to around 54 cents in a full bear mode scenario. We feel there is enough of a risk/reward ratio to place a short if the bears are able to break below our short entry price of $1.95.

BULLS – EOS bulls will not gain ground until a high volume event propels the coin above the 50 Day SMA as well as the top of the descending channel. We want to be conservative going long in this pronounced bear market and patience is the name of the game. Therefore, we are suggesting to wait to place any buy orders until the bulls break above the channel at $2.70 at the time of writing. We will update this entry price as the market develops and possibly to lower levels if price continues to dip. The 200 Day MA (Blue Trend Line ) is sitting around $4.50. Until EOS breaks above its 200 Day MA we will remain bearish bias.

Falling Wedge Pattern: Bullish reversal pattern marked by lower highs, but the lower lows are flattening signalling that the bears are losing their grip on the market. This is traded normally as a reversal pattern when found at the bottom of a downtrend.

RSI – Positive divergence and RSI is in the neutral territory around 48. Strength will be reflective once RSI approaches 60.

Trade suggestion: We are not recommending any trades until there is more market clarity whether you are a bear or bull. Be patient for interesting prices.

4. Litecoin (LTC) Surveillance Report

Week 1 of 21 – Litecoin (LTC) Surveillance Report by bitcoinbobby on TradingView.com

BEARS – Back on April 2018 bears successfully completed the death cross where the 50 Day SMA (Orange Trend Line ) fell below the 200 Day MA (Blue Trend Line ). Since then Litecoin bulls have exhibited typical bear market behaviour. Desperate volatile pullbacks, but inside a descending channel. Selling pressure continues. If bears are successful in pushing prices below $26.50 a likely retest of the December lows of $22.30 is very likely. We also feel that a double bounce is unlikely at this level and that a break below $22 could ensue panic selling. There is little historical support from 2017 at these lower levels as Litecoin ballooned up, but we feel more probable support would be a drop to the 161.8% Fibonacci retracement to around $10.56. We feel there is enough of a risk/reward ratio to place a short if the bears are able to break below our short entry price of $26.50.

BULLS – Bullish signs are on the horizon for Litecoin. Litecoin has found temporary support on the 50 Day SMA, which is sitting at $32 at time of writing. Therefore, we are suggesting traders to wait until the bulls break above $34.88 with an appropriate stop at $27. We will update this entry price as the market develops. The 200 Daily MA (Blue Trend Line ) is sitting around $47.90. Any asset class that breaks above its 200 Day MA is a very positive price action that should lead to a long term positive sentiment and bullish trend direction. Until Litecoin breaks above and confirms this trend line as the support we will maintain an overall bearish sentiment.

RSI – Is showing positive momentum and currently sitting at 54. Litecoin is one of the leading performers since the December capitulation.

Trade suggestion: We are not recommending any trades until there is more market clarity whether you are a bear or bull.

5. Tron (TRX) Surveillance Report

Week 1 of 21 – Tron (TRX) Surveillance Report by bitcoinbobby on TradingView.com

BEARS – TRX bears have been getting battered since December 2018 when Bitcoin capitulated from 6k to 3k. TRX is the top performing alt coin and the bottom seems to be in. However, Bitcoin still remains King so we remain cautiously optimistic. A short position is only viable if bears can break below the 200 Day MA, the 50 Day MA and below the ascending channel. Earliest short entry price can be found around .02 cents with a target goal down to the 161.8% Fibonacci retracement to .012 cents. This drop, although unlikely, is in line with a Bitcoin market capitulation candle that many bear traders are calling for.

BULLS – TRX Bulls are looking to push prices back above the centerline of the ascending channel and are keen to hit the next Fibonacci extension (127%) sitting at .035. TRX is trading above it’s 50 Day SMA and 200 Day MA, which is a significant development. Any pullback should find solid support in this zone especially with the 50 Day moving back above the 200 Day. If this was Bitcoin we would confirm the crypto-currency market bottom is in. However, we are impressed with TRX resilience and this price action leads us to believe higher levels are on the near term horizon.

RSI – Showing strength and support above 50. Bulls are in control.

Trade suggestion: Our buy order level was triggered at .024. We suggest traders go long on the next pullback that finds support on the lower bound end of the ascending channel with a stop loss at .021.

6. Bitcoin Cash (BCH) Surveillance Report

Week 1 of 21 – Bitcoin Cash (BCH) Surveillance Report by bitcoinbobby on TradingView.com

BEARS – The Bitcoin Cash fork was a negative sentiment changer for the community and this showed up in the price action. It was only in November BCH reached $640 and post fork fell to $74 five weeks later. Bears have taken advantage of this uncertainty and have squashed any bull rally attempts from materializing. This is evident with prices remain fixed below the 50 Day SMA. If bears are successful in pushing prices below $97.90 a likely retest of the December lows of $74 is very likely. We also feel that a double bounce is unlikely at this level and that a break below $74 could ensue panic selling. BCH could panic sell to a drop to the 161.8% Fibonacci retracement of $18. We feel there is enough of a risk/reward ratio to place a short if the bears are able to break below our short entry price of $97.90.

BULLS – Bitcoin cash Bulls have a lot of work to turn things around. First, they need to break above the 50 Day SMA, then above the descending channel and confirm this as support. Only then can we be more confident in placing a potential buy order at around $178. The market sentiment around Bitcoin Cash will be confirmed once it breaks above its 200 Day MA around $400. If and when this happens only then can we confirm a bottom is likely in.

RSI – Bears are in control with an RSI sitting at 40. Bullish momentum will be confirmed once it scales above 50 and approaches 60.

Trade suggestion: We are not recommending any trades until there is more market clarity whether you are a bear or bull. Bitcoin cash tends to violently move up or down in conjunction with Bitcoin so we can only trade confidently in this coin when a trend is established. We have no interest in catching falling knives.

Start trading cryptocurrency with Coindirect.

Written by

14 years experience across UBS Asset Management, Principal Global Investors and Factset Research Systems. In 2017 I left the centralized system to become a full time crypto-currency trader, researcher and internet publisher.@wolfpackcrypto

Related Articles