Over the past 24 hours, the Bitcoin price has stabilized in the mid-$6,000 region. BTC eyed a breakout at a major resistance level at $6,800, but has slightly declined to the range of $6,550 to $6,600.
Most major cryptocurrencies including Ethereum (ETH), Ripple (XRP), and EOS have recorded fairly large losses in the range of 3 to 5 percent on October 1, failing to sustain momentum against both Bitcoin and the US dollar.
But, many technical analysts in the cryptocurrency community have expressed their optimism towards the short-term trend of Stellar, which remains as one of the few digital assets in the global market to have minimized losses throughout the past two days.
Last week, XLM closed its weekly chart with a bullish run, demonstrating momentum following the formation of an ascending triangle.
Since September 29, analysts have referred to the positive technical indicators of XLM, predicting a Ripple-like short-term rally in the upcoming days.
At $0.262, as widely recognized technical analyst Carpe Noctom recently suggested, XLM is eyeing a big price movement on the upside if it can successfully surpass the $0.27 mark in the next 12 to 24 hours.
Another respected analyst with the online alias Satoshi Flipper noted:
“XLM about to pull a ripper right out of this symmetrical triangle, as long as BTC doesn’t ruin the party. Long here.”
But, the predicted breakout of XLM depends on two major factors: the short-term trend of Bitcoin and the ability of Stellar to surpass a major resistance level.
On September 27, the price of Bitcoin was expected to initiate a large rally to the $7,000 region as it moved closer to the $6,800 resistance level. After BTC failed to breakout of the $6,800 level, it fell below the $6,500 mark and BTC was forced to re-initiate a short-term rally once again.
As with most major cryptocurrencies and low market cap digital assets, as favorable the technical indicators of XLM are, the short-term performance of Stellar still ultimately depends on the performance of Bitcoin.
Don Alt, a cryptocurrency investor, stated that the quarterly trend of Bitcoin remains bullish but BTC has to close its 3-month candle to demonstrate a positive short-term price movement.
“BTC quarterly update: Relatively promising close. The last few times we’ve gotten two quarterly close in such a tiny range was at the end of both bear markets. I don’t really trade based on fractals, it’s just something interesting to watch. Quarterly is still very bullish,” he explained.
The last time Bitcoin recorded two stable 3-month candles in mid-2016 led to a large mid-term rally. It is possible that the last quarter of 2018 could replicate a similar movement.
In the short-term, as in the upcoming days, the price trend of Bitcoin still remains uncertain. BTC will have to increase substantially in volume, by more than 20 percent, to initiate a solid movement to the upside, which is fairly unlikely.
Featured Image from Shutterstock. Charts from TradingView.
Last modified: May 20, 2020 5:19 PM