Driven by a new tweet from Elon Musk, the crypto key currency Bitcoin (BTC) has seen a noticeable increase in value in the last 24 hours of trading. Although the altcoins also benefit from this development, they are falling significantly behind Bitcoin (BTC).
Bitcoin (BTC) was still under pressure at the beginning of the week, but was able to avert a fall from the sideways range below USD 31,000 and then even gain noticeably at the end of the week. Again it is a tweet from Tesla founder Elon Musk, which investors used for entry. Bitcoin is once again trading at the top of its sideways range at USD 40,400. Shortly before the end of the week, many altcoins can break away from their lows and limit price drops. If Bitcoin succeeds in expanding the positive momentum of the last trading hours in the new trading week, this would be an important first step towards sustainable overall market stabilization.
Best price development among the top 10 altcoins:
Litecoin (LTC)
Litecoin can join the positive price development of its big brother Bitcoin after several bearish weeks. In contrast to the other top 10 altcoins, the LTC rate holds up relatively well. On a weekly basis, Litecoin only recorded a price drop of four percentage points to the current USD 171.
Bullish variant (Litecoin)
Despite its relative outperformance, Litecoin has not yet been able to initiate a sustainable breakout. The LTC price trades – like the vast majority of Altcoins – under all moving average lines in the daily chart. If the LTC rate manages to stabilize above USD 156 and also defend the resistance at USD 169, a directional decision will be made between USD 180 and USD 185. With the EMA20 (red), EMA200 (blue) and MA200 (green) three strong resistors are waiting here. If the bulls can break this area on the daily closing price, a rise to USD 208 is likely. Here, however, there is another strong resist zone with the upper Bollinger band and the EMA50 (orange). In addition, the supertrend at USD 215 is also a strong resistance. If this area can also be overcome in the long term and the horizontal resistance at USD 230 is regained, a march into the red resistance area must be planned. This is where the high from February 2021 and the lower edge of the trend channel of the abandoned upward trend channel runs.
Investors will increasingly want to take existing profits. If Litecoin can also climb USD 247 in the medium term, the first price target will be activated at USD 264. Only when this price mark is surpassed sustainably does the chart light up again increasingly. Then the LTC price could march through to the 292 USD. An attack on USD 315 is also conceivable in perspective. Should the bulls manage to overcome this price mark by the daily closing price, the focus will be on the annual high in the area of the 261 Fibonacci extension at USD 339. If this chart mark is also broken sustainably, a breakthrough to the strong resistance at USD 376 is likely. Here there is an important horizontal resistance in the form of the all-time high from 2017. Once again, increased profit-taking is to be expected in this area. The all-time high of USD 413 is currently to be seen as the maximum bullish price target.
Bearish variant (Litecoin)
If the LTC rate rebounds significantly down around USD 168, but no later than USD 180, Litecoin should initially correct back to USD 156. Litecoin has recently found its ground here several times. If this support level is also abandoned, a relapse to the history lows at USD 144 is likely. If there is no clear countermovement and the LTC rate continues to slide, the purple support area at USD 118 will come into focus again. Here you can find the low of May 23, 2021.
Only when the LTC price breaks below this important chart mark at the daily closing price and also undercuts USD 112, the next bearish price target is activated at USD 98. A cross support consisting of 61 Fibonacci retracement and a horizontal support line runs here. A further price weakness could have Litecoin corrected in the medium term in the direction of the maximum bearish price targets of USD 93 and USD 89 respectively. A short drop in the price of up to USD 82 cannot be ruled out. In this area at the latest, strong resistance from the cops can be expected. As long as Bitcoin does not drop well below USD 30,000, this bearish variant can only be viewed as an alternative price movement.
Indicators (Litecoin)
The RSI indicator is pointing slightly north, but at 42 it is still trading below the neutral zone between 45 and 55. Fortunately, the MACD indicator has generated a buy signal which is supportive for the bulls. However, looking at the weekly chart, the picture still looks weak. The RSI is trading within the neutral zone, but has also recently been trending south.
Worst price development among the top 10 altcoins:
Uniswap (UNI)
The course of the DeFi project Uniswap has not really got going in the last few weeks of trading. The entire DeFi sector had to give way after a strong first half of the year and is also pulling Uniswap south with them. On the positive side, the cross support from EMA200 (blue) and MA200 (green) at USD 21.45 had a positive effect on several occasions in the last few trading days. However, with a current rate of USD 23.13, Uniswap is still trading directionless.
Bullish variant (uniswap)
The price development of UNI appeared increasingly bearish in the last few trading days. The bulls failed to recapture the cross resistance from EMA20 (red) and 38er Fibonacci retracement several times. Only when the UNI rate can dynamically rise back above the 25.44 USD should an attack be planned in the direction of the upper edge of the purple resistance zone. Another strong resistance cluster can be found here with the EMA50 (orange) and the 50s Fibonacci retracement of the current movement. If Uniswap can break above USD 28.94, it is likely to rise to USD 30.09. In addition to the blue horizontal resistance line, the supertrend is another potential target at USD 30.65. Since the upper Bollinger Band is also only a short distance away at USD 31.36, the bulls have to make a show of strength in order to recapture this zone on a sustainable basis. If successfully overcome, price targets are activated in the form of the red resistance area. For one, the 61 Fibonacci retracement is at USD 32.70.
In addition, there is a strong horizontal resistance from March 2021 at USD 34.95. If the bulls can lift the UNI rate back above USD 35.00 and then attack USD 36.61 in the course of a rebounding overall market, it brightens the chart image is increasing. The lower edge of the abandoned uptrend channel is currently running here. The 78 Fibonacci retracement is also slightly above this chart mark at USD 38.05. Should this resistance be regained by the end of the day, Uniswap should again enter the blue resistance zone. The UNI rate bounced south several times between USD 41.12 and USD 44.87. If the DeFi sector gains momentum again in the coming months, and Uniswap forms a new all-time high, the maximum price target of USD 57.11 moves into focus. The 138 Fibonacci extension and the upper edge of the trend channel of the old upward trend channel run at this cross resistance. For the time being, an increase above this price target is not to be expected.
Bearish variant (uniswap)
If Uniswap slips back below the cross support at USD 21.45 in the coming trading days and the orange support area is also permanently abandoned, a fallback to USD 16.71 is conceivable. If the bears can subsequently push the UNI rate below the green support area and dynamically fall below USD 15.91, the correction should extend to USD 12.95. This is where the striking low of May 23, 2021 runs. The bull camp will try with all its might to defend this support. If the overall market correction expands further in the coming trading weeks, a price slide up to USD 9.11 is possible. Uniswap could even break down to a maximum of USD 7.54. For the time being, however, these bearish price targets are still a long way off. As long as Bitcoin doesn’t drop well below USD 30,000, the bears will have a hard time reaching these targets.
Indicators (Uniswap)
The RSI as well as the MACD indicator are currently trending sideways and cannot provide any fresh impetus. As the RSI remains below the neutral zone at 43, it is now up to the bulls to wait for new buy signals.
Top 10 stability
A look at the top 10 altcoins shows a rare picture this week. While the Bitcoin price rises by more than 12 percent, all of the top 10 Altcoins lose value. Half of the top 10 altcoins show a price decline of more than 10 percentage points. Bitcoin’s little brother, Litecoin (LTC), pulls out of the affair at a 4 percent discount. Litecoin jumps two places in the ranking to 10th and thus back to the top 10. The list of underperformers is led by Uniswap (UNI) with a 12 percent price decline, followed by Dogecoin (DOGE) with a 10 percent price discount. Cardano (ADA), Polkadot (DOT) and the Binance Coin (BNB) with around 8 percent price correction each give up part of their previous week’s profits.
Winner and Loser of the Week
The widespread price recovery rally among the top 100 Altcoins was dampened in the past trading week. One reason is the recently fallen market dominance of all altcoins over Bitcoin. While the crypto reserve currency is gaining a good 5 percent in value, almost 60 percent of the top 100 altcoins are losing double-digit values. On the positive side, the majority of the losses are moderate. Only the Internet Computer (ICP) has to accept a sharp price setback with a 37 percent price drop. Sushi (SUSHI) and the Synthetix Network Token (SNX) also show a price drop of 22 percent and more.
It should be noted that only three top 100 Altcoins show a double-digit price increase. The short list of weekly winners is headed by Amp (AMP) with a new all-time high and a 50 percent price premium. Quant (QNT) with 35 percent and Theta Fuel (TFUEL) with 19 percent price plus are also successfully countering the negative weekly trend. As long as Bitcoin cannot initiate a fresh, sustainable upward trend, the probability of a broad, long-term bullish move in the overall market is initially low.
Disclaimer: The price estimates presented on this page do not constitute buy or sell recommendations. They are only an assessment of the analyst.
The chart images were created using TradingView created.
USD / EUR exchange rate at the time of going to press: 0.83 euros.