Weekly Technical Analysis – 8 May 2018
I have been travelling through Europe and have had little time to update the site. Nevertheless the crypto markets remain interesting so let’s dive in and take a look.
Since my last post, Bitcoin has broken out of the large bullish flag that was forming and has moved steadily higher. We have also seen a nice uptick in the altcoin market and Ethereum has recovered nicely from it’s yearly lows and currently sits at around $730 at publication time of this article. It’s a little tricky knowing which sectors are the best to put your money into, though the market cap chart below suggests that altcoins will continue to outperform in the short to medium term.
Bitcoin vs The Dollar
Here is the chart of that bullish flag mentioned before. This pattern is extremely similar to the one which happened between April and July of 2013. Of course nothing is for certain, but if we see another big bull run similar to that period then bitcoin could go a lot higher from here! The price action remains positive so look to buy dips.
Return of the Alt Cycle?
I entered back into alts a little too early on in the year. Fortunately April saw a solid recovery as can be seen by the chart below. In my opinion alts will continue to run in 2018, but for me to feel a lot more confident about that view I would like to see the #ethbtc pair have a daily close above 0.125. If that happens I expect this pair to move into uncharted territory as Ethereum closes the gap on Bitcoin’s market capitalisation.
Remember that I use this chart to determine alts because most altcoins have been launched on top of the Ethereum platform and the demand for Ether will rise as investors and network participants look to get hold of tokens.