Bitcoin (BTC), Litecoin (LTC), Ripple (XRP) Outlook: will the momentum last?

Bitcoin (BTC / USD), Litecoin (LTC / USD), Ripple (XRP / USD), Technical Analysis – Talking Points

• Bitcoin is fast approaching its 2018 highs, but the momentum is waning
• Litecoin increases in the best day in over 8 months towards endurance
• Ripple confirmed a push above the key resistance, the momentum holds

Bitcoin rose more than 4.6% on Monday, extending notable gains that prompted the cryptocurrency to set new highs this year. One of the most important fundamental forces that pushed it up was the push to the money supply Around the world thanks to central banks.

Given the recent price action, could BTC / USD, Litecoin and Ripple extend their momentum? Keep in mind that cryptocurrencies can be quite volatile and investors should take this into account when developing their unique trading styles. To find out which style suits your personality, take a look at ours DNA quiz here.

Technical perspectives of Bitcoin

Bitcoin is fast approaching the 2018 high of 17178 after BTC / USD eliminated the 78.6% Fibonacci extension at 16595. Confirmation is still missing. A further upward push could open the door to extended earnings. However, there is a negative RSI divergence. This shows that upward momentum is waning and can sometimes precede a downward turn. The key support is found below at 15145 which is the 61.8% Fibonacci extension.

However, a bullish “golden cross” formed in October and remains in play. This is when the short term of 20 days Simple Moving average (SMA) exceeds the medium-term one at 50 days. Therefore, keep an eye out for these lines in case of a lower turn as they could act as support. Otherwise, Bitcoin could be heading to revisit the all-time high in 2017 before the cryptocurrency bubble burst.

BTC / USD – Daily chart

Graphic C.repeated in TradingView

Litecoin technical perspectives

Litecoin was up 18.37% on Monday in its largest single-day rise in over 8 months. This pushed LTC / USD above the 61.8% Fibonacci extension to 68.83. Prices stopped below the 78.6% extension at 76.22. The elimination of this price could open the door to test the current 2020 highs which would create a resistance zone between 80.75 and 84.50.

This is underlined by a bullish “Gold Cross” formed in October. Eliminating these highs would subsequently expose the minor extension of 114.6% to 92.06. However, the negative RSI divergence suggests that upward momentum is wearing off. Returning below the 61.8% extension exposes the inflection point of 64.38 and the 20 and 50 day SMAs.

LTC / USD – Daily chart

Graphic C.repeated in TradingView

Ripple’s technical perspectives

Ripple has also expanded in recent times, pushing above the 0.2601 – 0.2677 flexion zone. Prices are approaching the 38.2% Fibonacci extension at 0.3017 as LTC / USD points to the highs of August. The latter would create a resistance zone between 0.3154 and 0.3291. Beyond that are the current highs of 2020. In case of a downside, keep an eye on the 50-day SMA which could act as support. Another point of interest is an increasing range of support from March – red area in the chart below.

XRP / USD – Daily chart

Graphic C.repeated in TradingView

— Written by Daniel Dubrovsky, currency analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter