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Bitcoin’s dominance is down to 44.7 percent because, while the leader has been consolidating near the highs, altcoins have been playing catch up. However, let’s study the charts and see whether this trend is likely to continue or if is Bitcoin ready to surge once again.
BTC/USD
As expected, Bitcoin has been facing resistance at the lifetime highs. However, it has not given up its gains, which shows its underlying strength.
A note of caution. The RSI is showing the first signs of a negative divergence, which is a bearish development if confirmed by a fall in price. Therefore, traders should keep their allocation size small. A fall and close below the channel support and the 20-day exponential moving average (EMA) will invalidate our bullish view.
ETH/USD
Ethereum continues to rally towards our first target of $381, where it is likely to face dual resistance from the horizontal line and the rising wedge. Therefore, it might be a good idea to take partial profits close to $375 levels and hold the rest with a close stop loss.
However, if the bulls manage to push through the resistance, a retest of the lifetime highs is possible. Hence, traders should continue to hold their positions with appropriate stop losses. Nevertheless, we don’t advise fresh positions above $381, as the risk/reward ratio is not favorable.
BCH/USD
Bitcoin Cash is slowly drifting down towards a support level of $550. No long trades should be initiated as long as the digital currency is below the downtrend line. Though aggressive traders can buy the breakout and close above the downtrend line, please keep the allocation size small because it is likely to face resistance at $736.
XRP/USD
Though ripple broke above our buy levels of $0.24000, it never closed above it, which shows selling at higher levels. The downtrend line is acting as a stiff resistance.
LTC/USD
Litecoin almost touched our target objective of $65. Traders might want to take partial profits at these levels and hold the rest with a close stop loss of $58, because the cryptocurrency can rally to the upper end of the channel, which is around $70.