Over the last 7 days, Bitcoin has fallen ~ 4% as the largest digital asset by market cap recently failed to power through all-time highs. Following the sharp sell-off, BTC could be reversing sentiment going into next week. Based on current technicals, which cryptocurrencies are flashing buy signals in the short term? We outline the top 5 that traders should have their eye on going into next week.
During the last week, Bitcoin saw a sharp sell-off after attempting to retest all-time highs. As the digital asset surpassed $19,400 last week, many believed it was gearing up to retest the December 2017 all-time high of $19,665. After experiencing strong upward momentum this month, BTC entered overbought territories and ultimately ran out of fuel. At the time of this report, BTC is currently trading at $17,766 and has witnessed a natural pullback.
Based on current technicals, BTC is now flashing a buy signal that should not go unnoticed. With altcoins still being highly correlated to BTC price action, which altcoins are also flashing buy signals based on the underlying technicals? Below we outline the top 5 cryptocurrencies to keep an eye on going into next week. The most important technical we are watching right now are moving averages ( especially important following parabolic moves ).
Bitcoin Technical Analysis – Strong Buy
Bitcoin’s recent sell-off gave it the opportunity to “cool-down” and restore the underlying technicals. Given the recent parabolic moves, this type of correction was justified on various levels. As of right now, BTC is approaching a scenario where the 50-day moving average could cross the 200-day. Based on historical data, we can see this being a bullish event for Bitcoin that has resulted in strong rallies. We have outlined previous scenarios on the chart where the 50-day crossed above the 200-day. With BTC inching closer to confirming another cross, many bulls seem to be piling back in.
Ethereum Technical Analysis – Strong Buy
We can quickly see that Ethereum has a similar setup to Bitcoin. With altcoins still being highly correlated to Bitcoin, this is not out of the ordinary at all. The difference here is that Ethereum looks like its slightly closer to confirming the moving average cross-over compared to Bitcoin. With this being said, ETH could outperform Bitcoin in the short-term, but ultimately experience similar bullish sentiment once the algo behind BTC kicks in.
XRP Technical Analysis – Strong Buy
Applying the same technicals, XRP has confirmed the cross-over before both Bitcoin and Ethereum. This explains XRP’s outperformance as of late. Over the last week, XRP has surged ~ 42% compared to BTC and ETH at -3.84% and -0.54% respectively. This recent cross-over should be a catalyst for another bull run. Look for XRP to continue to outperform in the short-term while Bitcoin and Ethereum technicals catch up.
Cardano Technical Analysis – Strong Buy
We can also see that Cardano’s technicals are extremely similar to XRP. This also explains why Cardano has outperformed Bitcoin and Ethereum over the last week. Cardano ( ADA ) has rallied ~ 28% in the last 7 days. The moving average cross-over is providing ADA with the necessary fuel for another leg up. Do not be surprised if Cardano also continues to outperform in the short-term while BTC and ETH price action catches up. Based on historical data, XRP and ADA could see strong buying pressure here since the cross-over just got triggered not too long ago.
Stellar Technical Analysis – Strong Buy
Last but not least, traders will be keeping an eye on Stellar ( XLM ) going into next week. XLM’s technicals are ahead of Bitcoin, Ethereum, XRP, Cardano, and many other cryptocurrencies. We can see that XLM confirmed the moving average cross-over earlier and has outperformed the whole market. Over the last 7 days, XLM has rallied ~ 92%. If the other digital assets follow this price action, it could give us an idea of what gains may be on the horizon. With XLM’s ROC ( rate of change ) still hovering around 0, there could be more bullish momentum flowing in next week.
Bearish Outlook – Strong Sell
By applying a similar analysis, we can also scope out some of the “strong sells” in the market right now. If we were to apply similar technicals, the following cryptocurrencies appear to be quite bearish going into next week:
- Bitcoin SV
- USD Coin
- Crypto.com Coin
- Huobi Token
- Theta Token
This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. This article was sourced by Visionary Financial