The cryptocurrency market is currently experiencing a slowing of price growth following volatility of the overbought on October 21 ’19.
A recent tweet from CEO of Binance, Changpeng Zhao, highlights his optimism toward a continuation of the Bitcoin price rally to $16K soon, suggesting that the bottoming of the market correction is a long term overview on the weekly to monthly time frames and should not be considered as short term intraday entries.
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Another interesting fact is that since 2003 in addition to a long-term price action viewpoint, Bitcoin has outperformed the S$P 500.
Will the first sign of recovery in the top-performing crypto pairs (October 21 ’19) turn out to be the start of a new bullish cycle, or should we expect a further decline in the recent price drop?
Let’s analyze the charts of the top 5 performing cryptocurrencies last month.
Price Pair: ATOM/USD: Weekly Time Frame
Our first choice is the Cosmos Atom altcoin. Cosmos (ATOM) paired against the USD on Kraken exchange had a 122.50% increase from a September 01 ’19 low, and set a new high in November ’19.
The trend build-up was initialized after a bullish accumulation pattern on October 14, where the ATOMUSD pair established a support level at $2.6667. From that point, the pair signaled a bullish engulfing pattern the next week surging to a new high of $4.250 on November 04 ’19.
Price Pair: ATOM/USD: Daily Time Frame
A view from the daily time frame reveals a series of breakouts of resistance levels on September 07, September 30, October 20, October 27, with a breakout of the bearish divergence trend line on November 02.
Price Pair: XLM/USD: Weekly Time Frame
The price pair between Stellar (XLM) and USD spiked by 116.83% above the bearish accumulation resistance level of 0.061721 from its September 16 open price.
The price surge later settled as the pair closed, forming a long upper shadow and then transitioned into a series of bullish closing candles (triple bullish accumulation) for a price increase of 72.41%.
Price Pair: BNB/USD: Weekly Time Frame
The Binance Coin (BNB) price increase by 55.99% from the September 23 ’19 low signaled a series of bullish accumulation patterns that followed a breakout of bearish accumulation resistance at $16.3834125.
If the bears fail to force the price below $15.8057940, we should look forward to a surge in the price of the Binance Coin into the end of Q4 2019.
Price Pair: BTC/USD: Weekly Time Frame
Bitcoin (BTC) broke out of the significant bearish accumulation resistance on October 21 ’19, confirming an end to the price correction for a total 41.91% increase in the last four weeks.
Although the pair signals a bearish inside-bar on October 28 ’19, the earlier bullish engulfing candlestick pattern shows that the bulls still maintain a stronghold on the BTC upward price direction.
Price Pair: HT/USD: Weekly Time Frame
Huobi Coin (HT) signals a hidden bullish divergence pattern as the RSI forms a lower low compared to the higher low of the price chart.
The pair now head towards the RSI overbought area after bouncing off the MA-50 support zone and has so far increased by 40.14% from the September 23 low. We look forward to a similar increase in the price similar to that of March 13 ’19 (153.68%).
Price Pair: HT/USD: Daily Time Frame
A daily chart overview of the Huobi Coin reveals a break out of the October 16 bearish divergence trend line on October 27 ’19. The HT coin price whipsawed after breaking the above hidden bearish accumulation resistance on November 06.
At press time, the pair threatens another close above $3.8896 resistance, following a sudden price slump on November 08. We look forward to a projected price target of $5.0 as we come to the end of the last quarter of 2019.
Conclusion
The total crypto market cap, excluding Bitcoin (BTC) bounces off the MA-50 from a monthly chart perspective, and shows a highly probable growth in the industry at large.
The recent increase in Bitcoin futures volumes implies an increase in institutional money into the industry. General market fundamentals show a healthy crypto ecosystem even as the market price still plays catch-up.
Most of the top five cryptos show a strong chance that they may close bullish by 2019 fourth quarter end.
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