Fri. Aug 19th, 2022

The cryptocurrency markets have shown some strong resilience through the weekend, with many altcoins making greater than +5% gains. Many of the gains have put cryptocurrencies into key breakout zones with excellent buy signals ahead.

 

Bitcoin (BTC)

Bitcoin (BTC)

When we have previously looked at Bitcoin’s Point & Figure chart, we had a prior buy entry at $8,000. That buy entry was nullified when a new reversal column of O’s formed. Because Bitcoin has created a lower high, the buy entry is adjusted lower, to a more favorable price at $7,800. If Bitcoin does move up $7,800, then the entry would also be at the break of a minor downtrend angle. This would be the first entry above any downtrend angle since October 25th, 2019. Even on the Point & Figure chart we can see lower highs and higher lows: evidence of a squeeze. We should expect some explosive movement if Bitcoin gets to the $7,800 entry.

 

Litecoin (LTC)

Litecoin (LTC)

I’ve written previous articles identifying entries for Litecoin on a Point & Figure chart. I’ve kept some of the prior buy signals on the chart above to show how the current entry compares to the most recent buy signals: the December 12th, 2019 entry at $43. If you observe the Fibonacci retracement levels on the 2nd to the last column of O’s, December 12th entry was above the 50% Fibonacci retracement level. The reason for that entry is because that particular column of O’s is a pole pattern. Ultimately, price started to retrace from the entry but it has since returned to the $43 level creating a double top. The buy entry for Litecoin would occur at the break of the double-top at $44.

 

Cardano (ADA)

Cardano (ADA)

Cardano (ADA) has a good amount of bullish fundamentals going for it. The Shelly testnet continues to run and generate positive transactions. I have personally staked approximately 150,000 ADA in a staking pool and have made over 600 ADA – but my pool isn’t saturated. CryptoBriefing reported that the largest staking pools are saturated, meaning that the more Cardano that is staked in those pools, the lower the rewards to all participants – it’s a built-in feature to prevent centralization. From a technical analysis view, Cardano has generated some positive buy signals. A double-top formed at $0.034 with a buy signal generated at $0.0345. Momentum looks like it will pick up and we could see Cardano move very swiftly to the $0.10 level.

 

ZCash (ZEC)

Zcash (ZEC)

ZCash (ZEC) is currently sitting inside a symmetrical triangle. One of the key rules with the Point & Figure chart styles is that buy signals and sell signals are only taken when a multiple top or bottom has been broken. This is important to know because many people assume that when a box moves out of a pattern like the symmetrical triangle, that is not an automatic buy alert. Instead, if Zcash pushes higher and above the triangle, then a double-top will be formed at $33 with an entry at a break of the double top at $34. If Zcash can maintain the momentum, then it will have a very short trip to break the dominant downtrend angle at the $40 value area.