Since our last OKEx update, the crypto markets have become extremely compelling. The Bitcoin ( BTC ) market looks like it’s been saved from an extended downtrend, and it is currently working on confirming a reversal and new uptrend. This is big for the crypto markets, as a rising Bitcoin lifts all cryptos. And if Bitcoin is starting a new uptrend, we could quickly see it back at the yearly high of $14k -- which is just one hop away from the all-time high of $20k.
OKEx’s exchange token had an important October, and seems to have confirmed its own uptrend against Bitcoin. On the 3-day OKB/BTC chart below, we can see that a July-August uptrend went through a correction during September. However, this correction held well at the 55 EMA through multiple retests, with the 55 continuing to climb throughout.
We can see that OKB is currently chewing through the resistance wick from August. The RSI is not diverging here, but rather showing strength commensurate with price. The histogram is climbing on the positive side of the range, although seems to be arching down just a bit. Volume continues to fall slowly, suggesting a general consolidation at this level. We could see a rejection at this resistance, and ranging between here and the 55 EMA.
On the daily OKB/USD chart, we see the token behaving as well as a shepherd dog. OKB’s retracement was held right at the 200 SMA, a highly recognized average on the daily. It then re-entered a very important support/resistance zone and has since been leveling through it methodically; first taking the 21 EMA, now gunning to take and hold the 55 EMA.
We see higher highs and lows on the RSI during this stair-stepping movement, indicating no obvious problems with the uptrend. The bar of resistance just above the current one is essentially the last big block of price history before OKB’s run to all-time highs -- there would be little resistance, if the exchange token can manage to get up there.
Bitcoin is potentially still in the danger zone, despite its eye-watering reversal that saw over 40% gains in less than two days. It is still possible for this surge to get rejected under $10,000, and for the bears to regain control of the market. Another leg up is needed to confirm an uptrend.
We see on this daily chart that Bitcoin is holding above two important levels: The downtrend resistance from the summer consolidation, and the bottom support of that same structure. Price is holding right near the 0.382 Fibonacci level, which is a modest retrace if it holds there. Bitcoin is currently consolidating on the lower timeframes, and we are very likely to see a break soon. It seems more likely for this break to be up considering the bullish sentiment, but there is also plenty of range left for a safe retracement down.
Although there have been some major coups in altcoin prices lately, the large-cap altcoins have not been the stars of that show. Here, Litecoin is no exception, and has performed quite badly against Bitcoin since its impressive bull run early in the year -- probably the first crypto to end its downtrend during the 2018 bear market.
We start with a weekly chart, and see what may be a bottomed-out Litecoin. Price seems to be respecting lows around ₿0.006. The RSI, while not putting in a bull divergence, has stabilized -- although it still has more to go before getting oversold.
The only snag here is the histogram, which has been taking a definite down-arching shape lately. This suggests that Litecoin may need another, final push down to a bottom before thinking about an uptrend.
Moving to the 3-day LTC/USD chart, we see that a double bottom of sorts has been put in, on top of a stable RSI profile. The histogram here is trending on the positive side, but without any strong signals of moving further up. Not much is happening here, and maybe Litecoin needs more time to attract renewed buyer interest on this would-be bottom.
This chart is mostly mimicking the Bitcoin chart, illustrating perhaps tepid interest in Litecoin itself. Indeed, CryptoGlobe reported today that Litecoin’s hashrate is down 60% since the altcoin’s halving in August.
Generally, Ethereum is looking much more compelling than Litecoin, in the category of old-guard, large-cap altcoins. Ethereum “capitulated” earlier this year into 2017-era price history, and has not yet been able to retake that level. But it has tested it once, and a likely uptrend has it slated to try again soon.
We can see on the weekly RSI building strength, and the histogram looks like it’s leveling off on the positive side.
On the daily USD pairing, we see a faint bull divergence on the RSI, on top of a double bottom on price. The altcoin is working through the 55 EMA, with volume building. Holding above the 55 will mean a bottom is in.
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