The uptrend in the crypto markets in the last couple of weeks has been led by large cap altcoins.
W.r.t US Dollars, Ethereum [ETH] and Litecoin [LTC] are up 70% and 85%, respectively, since the beginning of the year. Nonetheless, much of the rise can be attributed to the uptrend in Bitcoin. Hence, the gains w.r.t BTC at comparatively lower.
The two altcoins are now nearing the cross between the 50 and 200-period EMA (exponential moving average) on a daily scale. However, the confluence before the golden cross often leads to a fake-out just near the contact point.
On swing trade ideas, leading derivatives and crypto traders, TraderSZ tweeted,
watching 205 for support. Will see how price behaves there if we get there to load more into ethusd. would be okay with pullback to 195 at most. Clean smash below last month high then im gna have to step back from longs, lowers my probability of idea #
The 50-period moving average at 4-hour chart at $210 will act as an important area of support in case of a downfall.
Another Prominent derivatives and crypto trader, TraderXO, suggests that the local highs will possibly drive Ethereum back to levels 0.019-0.020 BTC levels of monthly open.
The prospects of higher rises in altcoins distributes some of the gains and investment from Bitcoin. Hence, while the gain is larger, the fall is equally disastrous. Moreover, the continuation of bulls in Bitcoin could check the price w.r.t to BTC for a while.
If the high is in, then looking to enter lower. pic.twitter.com/d38cDPBUsb
— TraderXO (@TraderX0X0) February 9, 2020
Will Litecoin [LTC] Reach its Bullish Targets?
Similarly the on Litecoin daily chart as well, the 50 and 200-EMAs are nearing a cross. Nevertheless, the trend in Litecoin is currently bullish with the break above head and shoulders pattern on lower time-frames keeping $90-$92 still in play.
Nevertheless, a correction back to test the $60 levels is probable if correction in crypto markets begin.
The uptrend in price with respect to BTC will seek support above the 0.006 BTC area for bullish invalidation.
Do you think altcoins are poised to rise higher or a correction is near? Please share your views with us.