Many alt coins look to be on the verge of imminent breakouts as they seek to regain losses made last month, as Bitcoin makes slow and steady progress back towards its key resistance areas. Ethereum is leading the way, with signs that a return to $300 is likely in the coming days and weeks.
Bitcoin’s Slow Grind Gives Alts a Platform
Classically, alts have moved best when Bitcoin has been stable, and Bitcoin’s current slow grind up from its local bottom of $8,400 seems to be bringing confidence back into the alt market. On the daily timeframe we can see that Bitcoin is still sitting very nicely above its 12-week trend line, having shown some welcome strength after the decline during the second half of February:
Bitcoin’s performance has surprised many, who thought that it might echo the price action seen in other markets on the back of the coronavirus outbreak and underperform. For the time being however, March is turning into a positive month for Bitcoin.
Whether the May halving can act as enough of a fundamental price driver to negate any further market jitters that might spill over to Bitcoin we simply don’t know – we are in uncharted waters here.
Alts Ready to Move
What we do know is that Bitcoin’s strength is, in turn, giving alts strength. We have seen many performing brilliantly in the week or so, with XTZ and OGN leading the way, but it seems as though Ethereum might be about to teach these young pups how it’s done.
As we can see, Ethereum has stuck to an upward trendline this week since bottoming at the end of February, and has today wicked up to $240, a clear sign that a reversal is underway:
This positive price action has led to some extremely bullish sentiment:
ascending triangle breakout looks imminent on $eth tbh.
im super long ltc already but i dont mind this eth setup tbh pic.twitter.com/wGsRCfzNPM
— ??Benjamin Blunts?? (@SmartContracter) March 6, 2020
$ETH can we finally go to 300? pic.twitter.com/Qdv2lOv9bE
— Don CryptoD (@DonCryptoDraper) March 6, 2020
WAN, VET, and RVN Could Fly
It’s not just Ethereum that has the potential for some great upside – Wanchain and Vechain have both broken through downward channels against their Bitcoin pairings and look like they are ready to move, with Ravencoin potentially joining them too if it can overcome the 320 sats level from which it was rejected yesterday.
If Bitcoin makes a sudden jump for glory then there is a very good chance that alts will go with it, but as always it pays to have stops in place, especially with the markets in general being in a very unpredictable place right now.
