As Bitcoin Continues Its Climb, Top Altcoins Also Tease Breakout

Bitcoin’s (BTC) ascent continues with prices hitting new multi-month highs earlier today, and other top cryptocurrencies may soon join the party.

Bitcoin violated the resistance zone of $6,055–$6,100 with a UTC close at $6,156 on Thursday and reached a six-month high of $6,336 on Bitstamp at 07:40 UTC today.

Prices have now hit multi-month highs on three consecutive days – a sign of strong bullish sentiment. With every move higher, both the short- and long-term bull cases presented by several technical indicators over the last few weeks have gained strength.

BTC, therefore, appears on track to test the 100-week price average, currently at $6,506 – a level that last came into play last November.

As of writing, the cryptocurrency is changing hands at $6,260 on Bitstamp, representing a 3.45 percent gain on a 24-hour basis.

Daily and weekly charts

BTC continues to establish bullish higher highs and higher lows on the daily chart (above left) with key moving averages trending north.

The relative strength index (RSI) is reporting overbought conditions with above-70 reading. That signal, however, would gain credence if and when the momentum starts weakening. As of writing, the bulls are showing no signs of exhaustion.

Further, the weekly RSI (above right) is currently printing the strongest bullish signal in over 15 months.

Hourly chart

On the hourly chart, the RSI has breached the ascending trendline to the downside and is rolling over from overbought levels. Hence, we may see a minor pullback to the ascending trendline support, currently at $6,140, before rising toward $6,500.

Altcoins tease breakout

While bitcoin has doubled in value over the last six weeks, altcoins have underperformed big time, as indicated by the massive depreciation of their BTC-denominated exchange rates.

  • The top 10 altcoins by market capitalization (excluding stablecoin tether/USDT) are reporting double-digit losses on a 30-day basis.
  • Stellar (XLM), down 40 percent, is the biggest loser, followed by cardano (ADA) and tron (TRX).
  • With a 14 percent drop, Binance coin (BNB) is the best performing major altcoin.

The numbers indicate a lack of interest in altcoins despite BTC’s confirmation of the long-term bullish reversal on April 2.

The battered altcoins, however, could soon find some love, as their combined market capitalization seems to have charted a bullish technical pattern.

Total altcoin market capitalization

The bull flag seen in the above chart is a continuation pattern that often ends up accelerating the preceding rally.

A convincing break above the upper edge of the flag, currently at $73.65 billion, would confirm a flag breakout and signal a continuation of the rise from lows near $45 billion seen in February.

A flag breakout, if confirmed, could be considered a sign the much-anticipated altcoin rally has begun. As of writing, the total altcoin market cap is seen at $72 billion.

Among the major altcoins, litecoin (LTC) could shine bright, as its mining reward halving is due in less than 90 days.

The process aimed at curbing inflation by reducing mining rewards by half every four years tends to puta strong bid under the cryptocurrency for months in advance, according to historical data.

Litecoin daily chart

Litecoin’s channel breakout indicates the path of least resistance is to the higher side. Prices, therefore, could rise above $100 ahead of the reward halving event.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin and litecoin image via Shutterstock; charts by Trading View

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This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.

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