Consolidation Continues, Profits Are Taken
The cryptocurrency market continues to consolidation following the 5-month highs hit two week’s ago. The market is undergoing an understandable round of profit-taking driven by this years big gains. While Bitcoin is still down more than 60% from its all-time high it and other digital coins and tokens have posted high double-digit gains this year. It is hard to say how long this consolidation will last, or where exactly it will take the market, so long as the industry continues to mature we can be assured the 2019 rebound and recovery will move higher over the long-term.
The Bitcoin Bubble
Bitcoin is consolidating above its 30-day moving average and looks like it may have found its support level. The indicators are still bearish and suggest market weakness, both MACD and stochastic are moving lower, so it is still too soon to call the next rally. At best we can expect to see price continue to move sideways with a possibility of testing the EMA. A move below the EMA would be bearish and could take the coin down to $4,800. The $4,800 is a key support level marking the top of a previous range and needs to hold for the current rally/rebound to remain intact. A fall below $4,800 would put BTC back within its trading range where it could linger indefinitely.
Ethereum, Not Out Of The Game
Ethereum is still not out of the game despite lingering issues with scalability, security, costs, and transaction speeds. This coin has made one of the worst recoveries this year, mostly because the team and network can’t seem to make progress they way they led us to believe. Currently, this coin is trading below the short-term 30-day EMA where it may be finding support but it is way to early to call a rally. The indicators are showing some signs of support but, with the coin below the EMA and indicators still bearish, a move lower is just as likely as a move higher, maybe more so. A fall from this level with close below $146.50 would be bearish and may take the coin all the way down to $100 or lower.
Litecoin, Big Rally and Big Correction
Litecoin is among the top performers in 2019. The coin, an adaptation of the BTC blockchain, has risen more than 300% since hitting its 2018 low and is now correcting from that high. The coin has shed about a third of its total value over the last three weeks and is approaching the 50% retracement level of the last rally. This level, near $61, is a key support target and a high-probability zone for major price signals. The indicators are still bullish but stochastic is oversold and the last bullish MACD peak is an extreme peak so I am expecting a retest of $100 over the next 4 to 6 weeks.
Ripple, Making Waves
Ripple was making waves with its new last year but it seems like the positive headlines have stopped. The coin, meanwhile, has been trapped within a trading range with no signs of breaking out. An attempted bullish break earlier this year was repelled by resistance and more recently a bearish test of support was likewise halted. The coin is now indicated to move higher within its range but there is no guarantee, if the cryptocurrency market correction continues this coin could see new lows.