Cryptocurrencies have been rallying throughout the day, with Bitcoin joining the blooming rally in altcoins with a bang, surging above $8000 right after finally leaving the $7000 price level behind. The whole segment followed the most valuable coin higher, with several altcoins already showing strength before the move.
BTC/USD, 4-Hour Chart Analysis
With no clear news catalyst behind the move, we reiterate that as the last part of the decline, this move is also mostly technical in nature, as the severely oversold long-term momentum readings that developed after the long downswing, coupled by the bleak investor sentiment created a solid base for the rally.
ETH/USD, 4-Hour Chart Analysis
Ethereum, which has been relatively strong lately continued higher, and the second largest coin is now nearing the $500 level, after taking off from the make-or-brake level that we pointed out last week. The currency remained bullish amid BTC’s surge, which is a very positive sign for the fate of the rally, even as the broad declining trend is still intact in the segment.
Ripple has been weak for an extended period, and the coin was late to join the party today as well, but the number three digital currency also left behind several resistance levels after triggering a short-term buy signal in our trend model, reaching up to $0.65 in a matter of hours.
Altcoins Following in the Footsteps of EOS
EOS/USD, 4-Hour Chart Analysis
EOS, the early leader of the rally reached the next target for the move at $9 today after clearing the primary resistance as expected. All of the top 100 coins are sporting gains, and even today’s laggards, most notably Litecoin, ETC, and XMR are challenging important resistance levels amid the broad advance.
While the segment is still not in an uptrend, as the series of higher highs and lower lows hasn’t been established and the broad bearish trends are intact, the momentum of the current move and the developing leadership are both encouraging for bulls here. That said, short-term traders should still expect volatility and
We will take a look at the long-term technical charts tomorrow, so stay tuned.
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Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.