By CCN.com: It has been almost a year and a half since bears took over crypto markets. Bitcoin took a massive beating as it shed 84% of its value. Other large-cap coins shared more brutal fates. Ethereum, Litecoin, and EOS were all devalued by more than 90%. Last year was full of trials and tribulations for retail investors. Thankfully, the ordeal is finally over.
With bitcoin’s unbelievable run over the last few days, altcoins such as Ethereum, Litecoin, and EOS have responded with massive technical breakouts. This prompted us to declare that the crypto winter of 2018 is now behind us.
Before bitcoin ignited its current parabolic run, it first painted a large ascending triangle pattern on the daily chart. It took the market five months before it broke out of the pattern. When it did, the coin’s value skyrocketed by almost 95% in a month and a half. The breakout marked bitcoin’s technical reversal.
Surprisingly, Ethereum is closely following in bitcoin’s footsteps. It also spent around five months printing a large ascending triangle on the daily chart. Now that it broke out of the pattern, it appears to be launching its own parabolic run.
Only time will tell if Ethereum will also go parabolic, but one thing’s for sure: it is no longer in bear territory.
Other large caps are following bitcoin’s leadership. Litecoin and EOS have printed the exact same reversal pattern on the longer time frame. Even more impressive, both altcoins have breached the neckline of the reversal structure to indicate the end of the downtrend on the macro perspective.
In the above chart, you will see that Litecoin is breaking out from a massive inverse head and shoulders pattern which has a 90% success rate. It took the market 11 months to generate this structure. That’s a lot of time to build a base in crypto. This reminds us of the phrase, “the longer the base, the higher the space.”
Another market that’s escaping bear country is EOS. Like Litecoin, it also broke out from a large inverse head and shoulders pattern on the weekly chart. The structure took nine months to build. The base-building time horizon may be a couple of months short compared to Litecoin’s, but it is still a considerable amount of time. It actually might just be enough to serve as the foundation of the next bull run.
With these technical breakouts, we are convinced that the crypto winter of 2018 is finally over. As large-cap altcoins show strength, mid- and low-cap coins are likely to follow suit just like in the last bull run. Sure, there may be dips and corrections, but it is highly doubtful that we generate new lows anytime soon.
This article was edited by Gerelyn Terzo for CCN.com. If you see a breach of our Code of Ethics or Rights and Duties of the Editor, or find a factual, spelling, or grammar error, please contact us and we will look at it as soon as possible.
Last modified: June 14, 2020 11:14 AM UTC