Altcoin Analysis: The Long-Awaited Growth Occurred on the Cryptocurrency Market

April 3, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

For all liquid cryptocurrency instruments from the TOP-10 over the past two days, there has been an almost vertical takeoff of quotes on high volumes.

Most traders agree that growth is due solely to technical factors. Apparently, the accumulation phase, which we mentioned in previous reviews, ended, and the market moved to the growth stage. The index of total capitalization is now at a value of $171 billion, which is almost 19% higher than the value of Monday.

It should be noted that the main indicator of the market, as well as the main market instruments, is now in a state of high volatility. At the same time, the current capitalization has been at its maximum since November last year.

Bitcoin

BTC, breaking through the upper limit of the trading range in the region of $4,140, ​​was able to gain a foothold and, after some consolidation, rushed sharply up, updating the multi-month price highs almost non-stop. In such a situation, it is correct to use a trailing stop, since the emotional mood of the participants can put up quotes for seemingly unattainable values.

Against this background, it is very difficult to predict in advance where the first stop will be. In the case of BTC, the halt occurred in the area just above $5,000, which is more of a psychological factor than some significant level in terms of technical analysis. While speculators are not ready to buy above this price and it is necessary to remove overbought in the instrument, which may result in a correction both in the form of a decline and form an outset. We have covered all positions and will wait for the formation of a new entry point with an understandable amount of risk.

Ethereum

At ETH, we did not expect such a strong movement, so all the main positions were concentrated in other instruments. However, against the background of the growth of the entire market, the coin was also able to show a good gain. After breaking through the upper limit of the trading range in the region of $144, the price per day soared by almost 20%. The volumes are impressive, but now the likelihood of further growth in the near future has noticeably decreased, the participants take profits so that they can bring emotions in order and calmly look at everything that happens from the outside. After the volatility returns to its normal values, we are waiting for the formation of new key points, but this may take some time.

Ripple

In XRP, we formed positions based on movement to targets at $0.32 and $0.342. During the two-day growth, both goals were achieved; moreover, against the background of emotional purchases, the price flew upwards from the second goal by another 9%. Now all positions are closed, the market needs time to calm down and start a new countdown. In conditions of high volatility, risks increase markedly, so for more conservative investors, now is the time to take profits, take a pause, and get some rest. For those who love high speeds and high risk, now is the time for action, because the likelihood that in the coming days we will see more than once sharp movements both up and down is high. We believe that in such situations the strategy should be individual and directly depend on risk sensitivity and personal experience.

EOS

In EOS, after moving above resistance at $4.40, a good shopping opportunity opened, which we wrote about in previous reviews. In such situations as this, when we see a strong impulse after a breakdown of a significant level, the value of the trailing stop is determined on the basis of individual preferences for risk. You can place a protective order at the minimum level of the previous candle or at a level lower than the double volatility indicator. Anyway, now the positions are already covered, the profit is fixed and now we are waiting for new moments to enter with an acceptable profit/risk ratio, but first of all we consider it important to wait for the volatility to decrease so that there is an opportunity to enter a good volume at the right point.

Litecoin

The LTC is also growing. Quotes after the breakdown of the upper limit of the range at $62, reached $84 per day and then corrected. Now the profit is fixed. In the case of updating the highs, it will be possible to restart again, however, due to the high volatility, the position size will not be large. The size of the position being opened must always take into account the size of the risk.

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Author: Marko Vidrih

Charts via Investing.com