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In our periodic OKEx review of the markets, we see that Bitcoin has stuck to its consolidation above $10,000. Whether this will break up or down is anybody’s guess, but the hour slowly draws near when we will get some decision. The altcoins are generally still languishing, as all the high-caps still struggle to find buy support. And OKEx’s solid and exceptional recent performance is flagging somewhat, as a correction to the “golden pocket” is starting to look shaky on the indicators.
We start with OKEx’s proprietary exchange token, OKB. On the BTC pairing, a promising leg up from July is holding up more or less well – but the trend is looking more down than up.
OKB chart by Charts.Cointrader.Pro
Price has tested the “golden pocket” area and bounced, but the RSI is trending down with lower highs and lows and no divergences. This, despite an earlier hidden bull divergence which suggested a (up)trend continuation. The MACD has taken quite a large correction from the top side, and may be able to reverse trend if the histogram is able to leave its flat trajectory – which it has not.
Moving to Bitcoin, we have been highlighting for a while now the leading crypto’s movement within a consolidation pattern. This pattern is most evident because of the declining volume profile, which has been on the downslope since Bitcoin’s local top in late June.
We can see above on the 2-day chart that the consolidation is a good candidate for being a descending triangle pattern – considered a bearish pattern generally – owing to the multiple retests of a horizontal support zone in the low $9,000 range. There are, however, a number of different ways to draw this pattern, and it suffices to say that it is consolidation.
The only real question is, which way will this consolidation pattern break, when it does? Looking at the weekly plus some indicators, we are reminded that the basic long term trend remains up. BTC has not even come in contact with the 21-week EMA, which it never closed below during the 2016-17 bull market.
BTC chart by TradingView
We can see that the histogram is ticking up hard so far in the week, and it would be quite encouraging to close in such an aspect. The RSI is so far holding in the very bullish 55+ part of the range. And the consolidation formation, whatever it is, looks like a bull flag or pennant on top of the run to $14k. As things currently stand, Bitcoin still looks safe within a completely healthy and understandable correction/accumulation phase after the first half of the year.
Litecoin had looked somewhat promising recently, trending down in a falling wedge pattern on its BTC pairing. And while this is generally thought of as a bullish pattern, Litecoin seems to be breaking the opposite way to the downside.
This leading altcoin is now deeply oversold versus BTC, after having fallen through its support zone from 2018. And if we look on a gigantic chart of LTC/BTC, we see that this crypto is already quite near the bottom of its chart.
On the USD pairing, Litecoin has been correcting since June, as have most major altcoins after the very profitable H1 2019 period. But Litecoin is here holding in the so-called “golden pocket” area of the Fibonnaci retracement scale, between 0.618-65. The histogram is steadily upticking from here, and looks like it could again breach the positive side of the range heading into the end of the year.
Ultimately, on both charts it is a matter of bottom-finding. This is always a messy affair, and the trend is simply down until it’s not. Unless you’re shorting, all one can do is remain vigilant for a trend reversal. Having said that, the golden pocket always has a decent chance of holding.
This goes perhaps double for Ethereum. Anyone watching the preeminent smart contract crypto will be aware of its unrelenting downtrend, after having broken into price territory not seen since 2017 on the BTC pairing.
We can note here, on this huge weekly chart, that after this capitulation the histogram dip has been far more modest than before. Price is trying to carve out a bottom through the (huge) final support zone of the chart, and here we must say it almost certainly will find support eventually – because not doing would probably mean going to zero, which is unlikely for the rank 2 crypto.
If we look at the 2-day USD pairing, we see that while Ethereum has continued to fall out of its previous uptrend lines, it is holding within a knot of support with relaxing indicators.
No divergences, bullish or bearish, are found on the RSI, but the dips there seem to have flattened out. The histogram indicator looks just about to cross over into positive territory for the first time in quite a while – although on this point, it is like to be only a shallow and brief crossing. Downside could certainly continue (especially if Bitcoin dumps), but it’s hard to imagine much lower than $150.
ETH has been bottom-trawling for quite a while now. As the summer months (for many) conclude, we may see more activity in the crypto markets in general, and perhaps a bottom will be put in for Ethereum and other large-cap altcoins.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.