Daily Crypto Analysis - 2nd Apr - Technical Analysis
Bitcoin
After a strong bounce from $6400 yesterday, Bitcoin is moving up in an ascending channel. After the first spike, volume dropped off extremely quickly on subsequent jumps, suggesting weakness to the climb.
An ascending channel is generally a bearish pattern when combined with diminishing volume, however its hard to say when it'll finally break down. We've already seen one attempt at a break down, but it quickly bounced back into the channel.
Ethereum
ETHBTC continues its slow dip back towards the 0.05395 support on extremely low volume. The low volume pullback is a bullish sign, however it waits to be seen where the drift will bottom out. A strong bounce above support is required to confirm this as a double bottom. If not, we run the risk of a situation similar to the last bounce, where we simply drift through support towards new lows.
Bitcoin Cash
Bitcoin Cash continues to push lower against bullish divergence on both the RSI and MACD. While this indicates that the bearish trend is weakening, as usual, its best to wait for a confirmed support and bullish reversal pattern before building up longs.
Bitcoin Cash has been consistently pushing lower on the ratio for the last 3 months, so it'll take a lot to reverse the bearish trend.
Litecoin
Litecoin broke the 0.01677 support yesterday, instead making a bounce from 0.01663. This breaks the theory of a bullish consolidation zone for the moment at least, as we now require a good second test of this support level and a new resistance level.
Volume has been dropping off nicely so, once LTCBTC has confirmed a horizontal channel, it will make a very attractive buying opportunity.
Disclaimer
I will do my best to give unbiased, objective analysis, but I can make no promises about my accuracy.
All posts are based on my personal opinions and ideas and do not constitute professional financial investment advice.