In the last few days, bitcoin bulls have been working really hard to put together a significant rally. Unfortunately, every attempt to bounce back has been met by a selling wall. Consequently, the king of cryptocurrencies is now close to breaking support of $9,000.
What’s positive about a weakening bitcoin is that it gives badly beaten altcoins the opportunity to recoup losses. On top of that, uptrending coins may end their consolidation as the leading cryptocurrency plunges. We’ll look at the latter to maximize the chances of profits. Here are three coins that are showing strength against bitcoin.
Binance Coin has been in a strong uptrend against bitcoin even since it breached resistance of 50,000 satoshis in December 2017. On April 20, the utility token posted a 2019 high of 481,340 satoshis. Since then, the market has been pulling back.
A quick look at the three-day chart of BNB/BTC shows that the pair is creating a large bull flag. This is a continuation pattern that signals the likelihood of a move higher. With bitcoin losing momentum, we might see Binance Coin finally break out of this pattern.
The strategy here is to consider buying on the breakout. Investors should wait for the market to breach the diagonal resistance of around 300,000 satoshis. After the breakout, the target is 460,000 satoshis.
Lambda is probably a mid-cap coin that you’ve never heard of. However, you’ll likely keep an eye on it after reading this article.
The cryptocurrency is in the midst of a massive rally against bitcoin. If you look at its chart, you might feel the fear of missing out; don’t. LAMB/BTC is flailing oversold signals, so you’ll likely have the chance to buy it on dips.
A look at the daily chart shows that Lambda is attempting to take out resistance of 2,730 satoshis. However, it appears to be overvalued. Hence, we believe that a pullback to support of 2,000 satoshis is in order before the cryptocurrency can take out the resistance. This will allow Lambda to create a large cup and handle pattern to indicate bullish continuation.
Thus, consider being patient and buying as close to 2,000 satoshis as possible. The initial target is 3,100 satoshis.
Ravencoin (RVN/BTC) is a market where bulls are beginning to take over. It may be struggling to take out immediate resistance of 498 satoshis. However, a look at the four-hour chart tells us that it is only a matter of time before bulls breach this resistance and blast off.
The cryptocurrency appears to be painting an inverse head-and-shoulders pattern on the four-hour chart. The reversal structure may only be visible on the shorter time frame, but it might just be enough to instigate a strong bullish insurrection.
The key level to take out is 498 satoshis. Above that level, the target is 595 satoshis.
Bitcoin’s continued weakness will likely provide our three selections the room to launch their bullish rallies. For now, it would be better to bet on coins that are showing strength than trying to catch the bottom of badly beaten crypto tokens. Investors might want to consider following the levels that we mapped out to maximize profit potential while minimizing risks.
Last modified: July 30, 2019 14:32 UTC