- Analysis for ETHBTC, BCHBTC, XRPBTC: Analysis of TOP Altcoins
It is not a usual post, where I analyze the TOP altcoins against Bitcoin. Are all altcoins alike? What is the most promising altcoin among the TOP ones?
In this post, I applied: Japanese candlestick analysis, key levels analysis, trading volume analysis
If you believe in cryptocurrency and its brilliant future, it would be reasonable to consider other altcoins that often can look more profitable than Bitcoin itself. In terms of risk diversification, first of all, TOP 10 altcoins by market capitalization are of interest. So, continuing this idea, it would be logical to analyze them technically in comparison to Bitcoin, to find out the most promising coins.
I will start my today’s analysis from the top altcoins, such as ETH, XRP, BCH. If you like this format, I will go on and analyze the rest of altcoins from the list in descending order by their market cap.
At first sight, the charts of Ethereum, Bitcoin Cash and Ripple look very similar, however, with a more detailed study, we can see a great difference. You only need to look at the last closed daily candlestick on 12.04.2018, that was when the great Bitcoin pump occurred. As we see in the chart below, all three cryptocurrency assets have different types of candlesticks.
In Ethereum chart, we see a bar on the right that is called a “Hanging Man” in classical Japanese candlestick analysis. It indicates a possibility of bearish trend reversal (in this case, it is bullish correction). In case, the next close is lower than “hanging man” close price (0.063293 BTC), we have every reason to expect the current trend to stop with the potential to reverse downwards. If it doesn’t occur, the pattern will fast lose its strength. In general, this situation coincides with that in the weekly timeframe, which I shared in my forecast for Ethereum this week. (see chart below)
ТThat is, Ethereum moving against BTC is strongly limited, however, there is still room to grow within the range of 0.061–0.073 BTC. It is clear in the trading volume chart.
We see, the marked range features too low trading volume. As a rule, the ticker seeks to fill the voids with new volume, therefore, ETHBTC consolidation at the current levels will send a signal to buy ethereum with the target at the level of about 0.073. In general, we can say, Ethereum looks better than the rest of the market; and if BTC goes on rising, ETH has all chances to get ahead.
Let’s come back to our chart with the altcoins and take a look at the middle chart of BCHBTC. We see a black candlestick, whose body fully covered the previous one, having formed Bearish Engulfing pattern. Moreover, this candlestick’s shadow broke out the local low, where the bullish correction started from. It is a bad sign, meaning that BCH is, in general, weaker than the rest of the market. The situation can be fundamentally changed only if this black candlestick is followed by a white one with close level above the last open, that is 0.09636 BTC.
In the chart below we see that, according to trading volume, Bitcoin Cash is trading in a rather narrow corridor, with a wide resistance zone above and a weaker support zone below.
So, summing up all the above, if you’d like to buy altcoins that will be growing faster than Bitcoin in future, I don’t recommend buying BCash.
Finally, let’s study Ripple chart.
For clarity, let’s turn back to the chart with candlesticks in the daily timeframe.
As we see in the last chart on the right, Ripple went his own way. During the previous day, it painted a candlestick with huge shadows on the both sides, which means a strong fight between bulls and bears. If we study this candlestick in 30-minute chart, everything becomes clear:
In the chart above, we see that Ripple at first started following the general market trend and was fast ahead; but there were strong sellers in the exchange, who started to dump the growth by sell orders, and did it systematically and calmly. We see that buyers’ trailing stops worked out at the level of 0.000075, and there was a final dumping down to the previous level, where whales started buying out cheaper Ripple in the same methodical way. The whole situation with XRP doesn’t seem right; the XRPBTC pair is controlled by manipulators, who are taking an advantage of everybody.
In the chart above, we see Ripple trading in the wide resistance zone, where it tends to move downwards, towards the lower channel borders, where it started its growth, at the level of 0.000072 BTC.
For the situation to change, and it to be relevant to buy Ripple, its price should break out the last candlestick high at the level of 0.000084 and close at 0.000081. Until it occurs, there is still a significant risk of liquidity outflow from Ripple into the growing Bitcoin, so, for now, it is not relevant to buy XRP.
Having finished the comparison of our TOP 3 altcoins, we can conclude that Ethereum is the leading one.
If you liked this post, in the next one, I will compare Ethereum with other TOP altcoins.
I wish you good luck and good profits!
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- Date of publication:
- Fri, 04/13/2018 - 07:47
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