We see themes running through charts in big coins. We see a variety of consolidation patterns after recent gains.
Bitcoin (BTC) on BitMEX is making a rising wedge formation. Those formations can be either bullish or bearish. In this case, it would be bearish if XBTUSD fell below $3,850 (Figure 1). Conversely, if Bitcoin (BTC) broke out of the top of the formation, that could be extremely bullish.
Litecoin (LTC) has similar potential vulnerabilities. A head and shoulders top may be forming. To avoid a bearish reversal, Litecoin (LTC) would need to stay above $48 (Figure 2). If Litecoin (LTC) were to move above $50 and stay there, that could be a sign of real strength.
The dApp space has some of the most constructive charts. The consolidation in Ethereum (ETH) on BitMEX is a nice sideways pattern that looks like a bull flag (Figure 3). This bodes well for upside continuation.
Bitcoin Cash (BCH) has possibly the best looking consolidation formation with a downward sloping triangle (Figure 4). Upside continuation is possible after perhaps one flush lower.
Tron (TRX) is also intriguing. Tron (TRX) vs. Bitcoin (BTC) is sitting on support near 626 Satoshis (Figure 5). The price action is so quiet on top of this support that risk-reward seems good to try the long side.
Bottom Line: Crypto is a waiting game at the moment. Patience seems warranted. As one trader said, markets are frequently a wealth transfer from impatient traders to patient ones.
Join me in the Crypto.IQ Trading Room as our trades plot how to benefit from these charts.