When they move, they all move together

After long weeks of mostly sideways, Bitcoin and its cryptocurrency friends have finally made a move and been to the upside. Definitely on the upside. Everyone has enjoyed a different earning percentage, but it’s clear that when the purchase comes, all the big name cryptocurrencies join in the fun.

BitcoinToday’s daily price chart looks like this:

After moving from its mid-March low and posting a significant rally in May, the cryptocurrency has remained within a falling price range for around 3 months. The highs and lows are presented as a classic flag pattern.

When the price finally closed above the high of the range, it took off on decent volume. Bitcoin appears to have peaked for now with that red bearish swallowed to kick off the month of August. It may take a while to catch your breath.

BitcoinThe weekly chart looks like this:

You can see that the March rally, bullish as it may seem, has so far failed to eliminate the April 2019 top as indicated by the horizontal red dotted line. It is likely to find serious resistance at that level, where buyers have previously given up and have given back momentum to sellers.

The other red dashed line – which connects the March low with the June / July side low – shows the dramatically upside quality of the move. A close or 2 below this trend line could be cause for concern.

EthereumThe daily price chart looks like this:

This cryptocurrency exploded from the summer side action with more energy than Bitcoin, as you can see from the strong upward movement in August. There’s the classic flag motif again.

Among technical analysts this was known as “cause building”, although it has been a while since I heard that phrase. The idea is that when the price compresses into that tightening range, when it finally gets out of it, the move can be substantial. This appears to be the case here.

EthereumThe weekly looks like this:

If you look closely, there is a lot here. The first thing is: Ethereum is back above the 2019 high. So this is different from Bitcoin which has yet to drop that level. From this point of view, it could be said that this is the strongest encryption.

On the other hand, note that it has a long, long way to go before it can even get close to its April / May 2018 high. Another element: Ethereum is back above its Ichimoku cloud which had been falling since the beginning. of 2018.

LitecoinThe daily price chart looks like this:

It’s the same base model as the other 2 – the April to July price range is a bit wider but it’s still compression. The flag pattern bursts to the top during the last days of July and – boom – Litecoin is above its late-April peak and on decent volume. It’s nearly impossible to buy at the lows, but if you could and had picked it up at the March low of 30, you would now be sitting on a double.

LitecoinThe weekly chart looks like this:

It is moving higher again but it is not as strong as the other 2 cryptocurrencies. You can see that, even with the breakout on the daily chart, Litecoin remains well below its year-to-date high. Also note that it is impossible, so far, to close above a falling Ichimoku cloud.

Of these 3 famous and big name cryptocurrencies, it is clear that while all of them had good moves, Ethereum managed to show a more beautiful price chart. Who knows if this will continue? Past performance does not guarantee future results, as you may have heard.

I have no positions in these investments. No recommendations are made one way or the other. If you are an investor, you would like to explore each of these situations. You can lose money by trading or investing in stocks and other instruments. Always do your independent research, due diligence, and seek professional advice from a licensed investment advisor.