Which Are The Cryptocurrencies On The Comeback Trail

Understanding Cryptocurrencies

In case you are following the cryptocurrency market, then it is that you know that Bitcoin has taken off rising a little over 50% in 18 days as it is when measured from the last swing low of $ 4,963 to a high of $ 7,851.82. The digital currency was up as much as 149% when calculated from the bear market bottom earlier. 

What Is A Swing Low?

To explain, swing low is a term used in technical analysis referring to the troughs reached by a security‘s price or an indicator during a given period of time usually less than 20 trading periods where the swing low is created when a low is lower than by other surrounding prices in a given period of time. It is that a swing low’s opposite counterpart is a swing high where swing lows and swing highs are used several different ways to identify trading strategies, trend directions, and volatility ranges.

Understanding What A Swing Low Is

It is to be understood that a swing low represents a relatively low point in price action within a given time frame. Hereby a swing low would likely be the lowest price in the most recent month. Therefore a swing low is often associated with swing trading strategies.

Hereafter swing traders work on a variety of different time frames and the swing low price would be the lowest price in the given time frame these traders watch. It is here that for some it might be the lowest price in a week or others trading on hourly charts where it might be the lowest price in the last few hours. Therefore still others it might be the lowest price in the last hour or less. This is because prices fluctuate on all time frames, a swing low is a subjective observation based on the time frame most important to the observer. This is why a typical swing low regardless of the time frame should be rather obvious to even a casual observer. 

All About The Cryptocurrencies

It is observed that as Bitcoin is now clearly above its 200 days simple moving average with a long term downtrend line, it is exceeding over the past couple of months. Of course these are signs of a bullish reversal as significantly improving the outlook for the intermediate time frame. Recently the price action also bodes well for the wider cryptocurrency market and especially the more actively traded alternative coins.

Whereas short term weakness can be used to accumulate positions in anticipation of further market-wide strengthening the coins are showing relative strength such as Bitcoin that generally has a better chance of outperforming the wider market with the relationship of price to the 200 days SMA with one way to see relative strength. 

Here are the cryptocurrencies that are above their 200-day SMA as well as long-term downtrend line:
Bitcoin cash (BCH/USD)
Dash (DASH/USD)
EOS (EOS/USD)
Ethereum (ETH/USD)
Litecoin (LTC/USD)
Monero (XMR/USD)

Firstly comes the BitocinCash progressing nicely and is still in the early part of its bullish reversal based on price behavior. It is this cryptocurrency which was up as much as 425% from the $73.6 bottom as of last week's high of $ 387. Thereby the long term downtrend line and the 200-day SMA were exceeded to the upside with the strength was quickly followed by a decline in volatility and the formation of a descending consolidation channel formed at the support of the line and SMA. Here the channel creates a bullish flag trend continuation pattern with a breakout of the flag occurred. Here it is classic bullish behavior for a strengthening trend. 

Thereafter the next one is Ethereum were from its $80.56 low, has risen as much as 156.8% as of last week’s high of $ 206.87. As it broke above its 200 days SMA then it quickly consolidated above that line subsequently forming a bullish flag pattern as the price broke out of the pattern. 

Concluding The Case With Litecoin

Taking a look at Litecoin finally it shows that the greater strength than Bitcoin cash as it has already gotten well above the downtrend line and 200 days SMA. Here Litecoin has been the market leader as it broke above its 200 days SMA early and kept going rising as much as 347 % as of the $ 99.50 high reached. Further on it broke out of a bullish wedge pattern and continues to point higher. So this is where we are positioned now.