Bitcoin (BTC/USD) has been in the limelight in the last couple of months as it pulls off a huge disbelief rally. The cryptocurrency climbed from $4,187.40 on April 2, 2019, to as high as $9,109 on May 30th. That’s a meteoric rise of over 117% in less than two months.
Bitcoin’s unexpected uproar came at the expense of many altcoins. Many dumped their altcoin holdings in favor of bitcoin. Consequently, many cryptocurrencies slumped. Some even revisited their 2018 lows. Nevertheless, we believe that bitcoin’s rally is on its last legs. Therefore, it’s almost time for the next altcoin party.
In this article, we reveal three major cryptos that look bullish against bitcoin.
We’ve been watching Ethereum for a long time now, waiting for it to pop. Our patience is about to be rewarded as the cryptocurrency shows numerous bullish signals.
First, we see a huge double bottom pattern on the daily chart. The price bounced immediately after it touched support of 0.025 on May 13th. This is a very good indicator that suggests the bottom is in.
The bounce was so strong that Ethereum breached three key resistance levels. The first one is the diagonal resistance of the descending channel. This pattern has kept Ethereum bearish for months but no more. The second one is the horizontal resistance of 0.3. The last resistance is the RSI diagonal resistance. The technical indicator breakout tells us that bullish momentum is growing strong.
Currently, Ethereum/Bitcoin is consolidating as it converts resistance of 0.03 into support. As long as bulls are above this level, the targets are 0.041 and 0.054.
TRON has been bearish for the last three months. However, recent price action tells us that the sentiment is about to make a 180-degree turn. When it does, the market will explode.
A look at the daily chart shows that TRON is painting a gigantic triangle on the daily chart. More importantly, notice the false breaks. Keep in mind, false breaks often provide fuel for massive reversals. For instance, the false break toward the end of January 2019 when TRON traded at 0.000008 drove the market down to 0.00000304 on May 13th.
Recently, we saw a second false break. This time the market is looking quite bullish. After the false break, TRON quickly recovered the diagonal support. On top of that, the daily RSI also broke out of its diagonal resistance. These signals tell us that TRON/Bitcoin is headed to greater heights; specifically, this crypto is likely headed to 0.000005 and 0.000008.
Ethereum Classic (ETC/BTC)
Just like our first two candidates, Ethereum Classic enjoyed multiple breakouts. The first one was an inverse head-and-shoulders breakout on the daily chart. It is not the best looking pattern but it still fits the description.
In addition to that, the daily RSI also broke out of an inverse head-and-shoulders pattern. The pattern on the RSI is much more clear compared to that of the price action. You will see the neckline at 46.
Currently, bulls control 0.00095 support. As long as they keep the market from trading lower, Ethereum Classic/Bitcoin is likely headed to 0.0011 first and then 0.00125.
With bitcoin on its last legs, we believe that altcoins will steal the show soon. Our prime candidates are Ethereum, TRON, and Ethereum Classic. These coins show multiple bullish signals and they look ready to explode.
Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
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