Prior to Bitcoin’s current price surge due to speculative demand and triggered critical technical price patterns, some altcoins in the cryptocurrency market already showed earlier bullish sentiment by breaking through critical resistance levels or pilling up on bullish pressure patterns. Among such coins are the top 5 performing altcoins, which include the Binance Coin (BNB), Bitcoin Cash (BCH), Litecoin (LTC), EOS (EOS), and Cardano (ADA).
The separation of dependencies of some altcoins form the number one crypto by market capitalization, Bitcoin is what we believe hints at the current bullish outlook of the BTC.
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Binance Coin (BNB)
First on our list of top 5 performing altcoins is the Binance (BNB) coin from the second largest cryptocurrency exchange by adjusted volume. Recently at a crypto conference in South Korea, Changpeng Zhao, CEO of Binance announced the launch of the company’s decentralized trading platform this April.
Starting with the last bearish decent of the crypto winter of 2018, the pair triggered a double bearish accumulation on 25 June ’18 which resulted in the lowest low of the year 2018. The current bullish swing was triggered following a breakout of bearish accumulation on 17 December ’18 (Q4 ‘18). This got the pair rolling into a bullish trend long before the BTCUSD showed any sign of bullish sentiment.
The BNBUSD pair has so far moved about 430.86% from the lowest low of Q4 ’18 into Q1 ’19, making it rank as the number one performer. Using the breakout of bearish accumulation as a reference point, and setting a protective stop loss below the support level at 35.55%, the pair has so far climbed by 257.71% maximal favorable excursion.
The above monthly chart of the BNBUSD shows an early bullish accumulation pattern triggered at the closing price of January ’19. This was an early entry signal in Q1 2019, which confirmed the breakout of bearish accumulation mentioned on the weekly time frame.
Bitcoin Cash (BCH)
Forked from Bitcoin and currently at number two position in our ranking is Bitcoin Cash. From the chart below, the pair like every other altcoin was in a long bearish trend. A breakdown of bullish accumulation signaled the last segment of the trend causing the pair to crash by about 89.37%. A bullish engulfing pattern signaled on 17 December ’18 gave the first clue to possible bottoming of the pair.
The pair later retraced the bullish volatility and transitioned from a bearish accumulation pattern on 28 January ’19 to a double bullish accumulation pattern on 04 March ’19.
From the low established by the bullish engulfing pattern of 17 December 2018, through Q1 ’18 to the current high, the BCH has increased by about 341%. Taking a long trade from the double bullish accumulation pattern the pair skyrockets by 165.92% at risk of 19.09%, with a risk to reward ratio of 8.69.
LiteCoin (LTC)
Litecoin on February 26 of Q1 was announced as official cryptocurrency for Glory Kickboxing League. This event triggered a bullish accumulation pattern on the price chart of the LTCUSD shown below.
Prior to the partnership, Litecoin was also announced earlier as sponsor of the UFC. The above weekly chart illustrates a bearish trend with short entry confirmation in the form of a breakdown of bullish accumulation on 30 July ’18. This bearish price decline eased into a regular bullish divergence pattern that was confirmed by the MACD golden cross on 17 December ’18.
Further buying pressure was reinforced in Q1 28 January ’19 leading to a 197.01% rally compared to the 13.25% risk, at a risk to reward ratio of 14.87. The pair from the 22.54 support has increased by about 339.06%.
EOS (EOS)
EOS is ranked the number one cryptocurrency according to China’s Center for Information and Industry Development in blockchain and cryptocurrency. Based on our top performers ranking, the coin is ranked number four based on the current bullish trend of approximately 283.22%.
From the above chart, the pair established resistance at 6.3117 and breaks through the hidden bullish accumulation pattern on 08 Oct ’18, before signaling a bottoming at 1.5554 through a breakout of bearish accumulation on 17 December ’18. The pair settles into a double bullish accumulation pattern on 21 and 28 January ’19, stressing the presence of buyers with strong support at 2.1830. From that point on, the exchange rate soared by approximately 149.88% at risk of 10.79%.
The monthly chart of EOS shows a final breakout of bearish accumulation as we entered the Q1 on January ’19. This was confirmation to a similar and earlier breakout of bearish accumulation on the weekly chart. Going long from the closing price of January after the breakout pattern, the pair has so far attained a risk to reward ratio of 1.1 as shown above.
Cardano (ADA)
The price chart of ADAUSD ended the crypto winter by signaling a bullish regular divergence pattern in combination with a breakout of bearish accumulation on 17 December ’18.
Like most altcoins, the pair retraced the initial gains from the end of Q4 ’18 and triggered a bullish accumulation on 25 February ’19 Q1, thereby confirming a continuation of the bullish trend. So far, the price of ADA has increased by 140.28% from the bullish accumulation, and 275.09% from the low of Q4 ’18. At risk of 8.09% below the bullish accumulation support, ADAUSD offers a 17.33 risk to reward ratio.
Conclusion
Approaching the above analyzed altcoins from the perspective of risk to reward and based on our entry and automatic stop level, the Binance coin (BNB) is still the best tradable coin with the highest risk to reward ratio of 15.75; followed by Litecoin with 14.87; EOS with 13.89; BCH with 8.69; and Cardano (ADA) being the last with a 8.08 risk to reward ratio.
The future looks generally promising for the cryptocurrency market, as it’s fully confirmed that we are in a crypto spring. Recent high demand for Bitcoin by Chinese traders on OTC desk may be the needed fundamental to boost a break of the resistance level $5357.09 on most exchanges.
