Technical Analysis: Bitcoin (BTC), Tron (TRX), Ethereum (ETH), Litecoin (LTC)

January 11, 2019 / by Bill Noble

Looking at Bitcoin (BTC) at a tactical level, Bitcoin (BTC) is sitting on top of intraday support near $3,688. Stochastics are oversold, so Bitcoin (BTC) may hold its ground. If Bitcoin is below this point, it would be an indication that negative news from yesterday and speculation about a fall in the cost of production could start a move in Bitcoin (BTC) back to the recent lows.

If Bitcoin (BTC) holds at $3,688 then you would have a case of bears and the crypto Twitterverse getting trapped at the bottom of a simple range.

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Tron (TRX) has run into material horizontal resistance on its two-day chart. TRXBTC was so vertical on the way up that TRXBTC is still pushing against its top Bollinger Band. This could be an indication that TRXBTC could correct to its 20-period moving average near 500 (Figure 1). It also seems like there is a negative stochastics divergence in place. At a minimum, Tron (TRX) may experience a sideways consolidation in a broad range for a few days.

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In Ethereum (ETH), the focus for today will be at the 21-period moving average on the two-day chart at $123 (Figure 2). Holding above that line will be key for stability. If Ethereum is below that level, a move to $100 becomes possible. Momentum indicators like Parabolic SAR and negative stochastic divergence reenforce the importance of the support at $123. A break of that could trigger more selling.  If 123 holds, that could be very constructive.

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Litecoin (LTC) is a house of technical pain. A head and shoulders bottom pattern and support at $38 sucked in just about every chartist including the famous John Bollinger. The 21-day moving average is at $34. Litecoin (LTC) has to hold that level or an upward sloping bearish wedge could become the operative technical formation.

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Bottom Line: Bitcoin (BTC) looks OK for the moment. The crypto Twitterverse has turned bearish, and that may hold up prices. That said, crypto has to prove that what is happening now is not a repeat of November. Conversely, if $3,688 in Bitcoin, $123 in Ethereum (ETH), and $34 in Litecoin (LTC) all hold, the picture could turn bullish.

The Crypto.IQ Trading Room has its own set of specialized levels they are working on to chart these big coins and take advantage of sentiment. The Crypto.IQ Trading Desk has a unique way of monitoring the crypto Twitterverse and using it as a sentiment indicator.

Join me there as I leverage these tools to make decisions in up markets and down.