The cryptocurrency markets have shown early signs of a bullish momentum shift following several months of heavy selling pressure. After losing upwards of 75% to 85% and forming ‘adam-and-eve’ style double bottoms, many leading cryptocurrency markets have produced significant bounces over the course of the last fortnight. The markets now appear poised in ‘open air’ – with either a retest of recently broken descending trendlines or further bullish momentum toward 23.6% retracement areas comprising the likely next moves for price of leading cryptocurrencies.
BTC Markets Recover by 25% From Support
The bitcoin (BTC) markets led the charge for the recent crypto bounce, forming an adam-and-eve styled double bottom after testing $6,000 USD area for the second time in 2018. The bounce saw BTC make a fourth point of contact with a long-term ascending trendline from July 2017. The recent low of roughly $6,400 comprised a 62.5% loss in value from this year’s highs of approximately $17,000.
On the 12th of April, BTC produced a dramatic upward spike and broke out of the descending triangle pattern in which it has consolidated during preceding months. With prices testing resistance at the $8,100 area as of this writing, the BTC markets have produced a gain of approximately 26.5% from the local low of roughly $6,400. Presently, as with many other cryptocurrency markets, it looks as though the next move for BTC will likely be either more bullish momentum towards the 23.6% retracement area, or a drop back down to retest the descending trendline that BTC recently broke above.
BCH Makes Bullish Gains of Almost 37%
Bitcoin Cash (BCH) found a local floor of approximately $610 towards the end of the first week of April, establishing support at the break-out area from November 2017 that also formed a third point of contact with a major long-term ascending trendline dating back to the BCH’s all-time low during the earliest weeks of Bitcoin Cash’s existence.
The recent sustained bearish action comprised a loss of approximately 79% from 2018’s highs of approximately $2,900. When measuring from BCH’s all-time high of roughly $4,000 from late December, Bitcoin Cash has experienced a retracement of over 85%.
Since then, Bitcoin Cash has rallied by approximately 37%, with the prices hovering at the $835 area as of this writing. BCH appears to be showing early signs of a bullish momentum change after breaking out of multiple significant descending trendlines and producing many days worth of sideways consolidatory price-action. As of this writing, BCH has the fourth largest market capitalization of all cryptocurrencies with a total capitalization of $14.2 billion.
Altcoin Markets Break Out of Descending Trendlines After Retesting Breakout Zones of Late 2017
The Ethereum (ETH) markets have also produced an adam-and-eve styled double bottom after fully retracing to retest the November 2017 breakout area of approximately $380. The local bottom also formed an additional point of contact with a long-term ascending trendline that has so far held for over 12 months.
ETH has since broken out of a major descending trendline, and produced gains of 35.5%. The price of ETH is approximately $515 as of this writing. Ethereum has continued to retain its position as the second largest cryptocurrency market by total capitalization, currently boasting a market cap of approximately $51 billion according to Coinmarketcap.
Ripple (XRP) is the third largest market by capitalization with $26.75 billion. In recent week, XRP established a local floor of approximately $0.46, after losing over 85% from the record highs of roughly $3.25 seen during early January. Since then, Ripple has bounced by over 68%, and is currently testing resistance at the $0.686 area.
Litecoin (LTC) is currently the position of the fifth largest cryptocurrency market with a total capitalization of $7.7 billion. After establishing resistance at $100 and making a third point of contact with an ascending trendline from September 2017, LTC has made gains of 27.5%, with prices currently sitting at almost $137.
Do you think that the immediate bear trend is over? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, Trading View
Want to create your own secure cold storage paper wallet? Check our tools section.
The post Markets Update: Broken Trendlines and Bullish Bounces appeared first on Bitcoin News.
Powered by WPeMatico