Daily Crypto Analysis - 31st Mar - Technical Analysis
Bitcoin
Bitcoin made a second bounce from just above the $6550 support and is now moving up to make a retest of the 78.6% resistance. Volume has dropped off significantly, so this is likely to be forming a bearish consolidation. A climb towards the $7682 resistance is a strong possibility, which would form an ascending wedge/ channel.
In the bigger picture, this bounce has been extremely small and on very low volume, so far. This is not a strong sign for Bitcoin in the short term, and I expect another push lower after this bearish consolidation.
Ethereum
After a brief pullback yesterday, ETHBTC pushed higher to 0.05901 before pulling back to the 0.05659 support. This is a very strong sign for Ethereum, as we've now got a support level after a leg up from lows, meaning we could now form a bullish consolidation zone. What we're looking for is a few days of low volume and low volatility which holds firmly above support. Once this is in place, we can start building up longs.
Bitcoin Cash
As noted yesterday, the sharp retrace from highs was a very weak sign for BCHBTC, and has lead to another push lower. However, this dip comes on much lower volume and the possibility of bullish divergence on the RSI and MACD. We'll have to wait until we've seen a confirmed bounce, as there is room for this to drift lower, but it isn't all bearish in the medium term.
Litecoin
Litecoin made a retest of the 0.01752 resistance before pulling back a bit. Volume has been decreasing but, so far, we've been holding fairly high. Now we're looking for a good bounce from the 0.01677 support to confirm this as a horizontal channel. From there, a few days of lower volume and volatility will be required to confirm this as a bullish consolidation, but this is looking quite promising.
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.