Bitcoin



(Bitstamp:BTCUSD 1h)

Bitcoin dropped to test the 100% support on some bullish divergence before making a small bounce. We now appear to be forming an ascending channel, which is a bearish continuation pattern. The low volume on the bullish candles supports this theory.

Some may have viewed the initial bounce from the 100% as the start of a large double bottom, but we would've expected a much sharper and higher volume bounce if that was the case. As such, I'm still viewing this as a bearish formation. Especially in light of all the breaks down recently.







Ethereum



(Bitstamp:ETHUSD 1h)

As we've come to expect during bear markets, ETHUSD is following BTCUSD extremely closely, with almost identical patterns of bullish divergence and bounces. While the volume profile suggests that Ethereum should be bullish, we're firmly coupled to Bitcoin and at the mercy of its dips.

Unfortunately, since Bitcoin looks to be gearing up for a new drop, Ethereum will likely follow. As fear sets into a market, correlation tends towards 1 across all assets, meaning that they are all panic sold rather than judged on their individual value. I strongly believe that Ethereum has good long term value, unfortunately long term growth isn't what we look for in a short term trade.







Litecoin



(Poloniex:LTCBTC 1h)

After its test of the 0.01690 support, LTCBTC is once again pushing higher. However, this climb comes within an ascending channel and on ever declining volume. This forms a bearish continuation pattern, and we'll likely make a retest of the 0.01690 support, and below, in the next few days.

Past that, if we can still hold the 0.01663 support, we may be able to attempt another bullish consolidation zone. But, for the moment, litecoin is looking pretty weak.







Monero



(Poloniex:XMRBTC 4h)

Monero is still holding strong above the 0.02462 support as volume declines. We're still looking for another day or two above support with low volatility, but this is looking fairly promising.

For those who like to FOMO into positions with less regard for risk, make sure to at least build up longs near support levels while holding tight stop losses. This will give a better risk/ reward for the position.







Disclaimer

I will do my best to give unbiased, objective analysis, but I can make no promises about my accuracy.

All posts are based on my personal opinions and ideas and do not constitute professional financial investment advice.