Is a Price Correction Imminent?
Bitcoin (BTC) has been showing strength recently, as it surged from $6,900 to $8,500 in a matter of two weeks. Not only has Bitcoin sees a period of growth, but privacy coins and Bitcoin forks have also been showing a similar move.
Crypto market daily performance. Source: Coin360
Dash (DASH) is up 70% in four days, while ZCash (ZEC) is up 45% in the same amount of days. Also, Bitcoin Cash (BCH) has seen an increase of 54% in the past ten days, while Bitcoin SV (BSV) is up 300% in the same period. Time for an analysis of these coins.
Dash is the best performer in the privacy category
The best performer recently is Dash, as it made a 70% upwards move in the past four days.
DASH USD 1-day chart. Source: TradingView
The price of Dash broke through the resistance of $57 with an all-time high in volume and started to rally towards the next resistance.
The next heavy resistance is found at the current level as the price rejected at the $87-90 level for a substantial amount of time. Besides that, the RSI level is in the critical zone as we speak, implying that a potential correction is warranted for such a spike.
DASH BTC 1-day chart. Source: TradingView
The BTC pair is showing a similar movement in recent weeks. The price of Dash broke through significant resistance at 0.0075 and continued to rally upwards. Currently, it’s visiting the next massive resistance with a similar RSI level, implying that a retest of lower levels is warranted.
Zcash following Dash
Not only is Dash making a good move in the past weeks, but Zcash is also showing a similar chart.
ZEC USD 2-day chart. Source: TradingView
Zcash broke through a significant resistance around $33 and started to rally. A giant volume candle gives the perspective of this push as ZEC didn’t see such a volume candle in a long while.
Currently, Zcash is approaching the next resistance around $45, which would be interesting to spot how the price is going to react at that level.
ZEC BTC 1-day chart. Source: TradingView
The BTC pair is also showing a strong push to the upside, through which it’s facing resistance as we speak. The 0.005 satoshis area is a significant area to push through, which looks like it’s going to be the next resistance in the current push.
However, pushing through and the space is open until 0.0075 satoshis. If Zcash can’t break up here, we’re likely looking at 0.0047 satoshis as the first level to become support.
Monero looking ready to follow?
The only privacy coin not showing such strength is Monero (XMR).
XMR USD 1-day chart. Source: TradingView
Monero is showing some signs of strength, as the price of Monero broke a 7-month old downtrend to the upside. Aside from that, the level of $55 was successfully broken to the upside.
As long as Monero holds the $55 area as support, continuation towards $100 is likely to occur.
XMR BTC 1-day chart. Source: TradingView
Interestingly enough, the BTC pair is not showing the same strength. The price of XMR in BTC was rejected at 0.00765 satoshis and is currently seeking for new support. The most critical level to watch is the 0.0068 satoshis level.
If the 0.0068 satoshis level flips as support, the price of Monero would be aiming the resistance area around 0.00765 satoshis again. Another test would likely lead to a breakout to the upside. If Monero breaks through the 0.00765 satoshis area, a rally towards 0.01 or 0.012 is on the table.
Bitcoin forks moving along
The privacy coins are showing strength. However, the Bitcoin forks are showing a similar move in the recent period. Bitcoin Cash has seen a surge of 80% in the past two weeks.
BCH USD 1-day chart. Source: TradingView
BCH has been hovering around $270 for a few days, before it broke through this significant resistance, aiming for the next targets. These targets are found at $325 and $360 here.
It’s interesting whether the daily timeframe can close above the $325 area. If the price can do that, a new rally towards the higher target is ready to occur.
BCH BTC 1-day chart. Source: TradingView
The BTC pair of Bitcoin Cash shows a breakout of the 6-month old range. The price of BCH moved towards the next resistance area at 0.038, which is being tested as we speak. A retest of the 0.033 area would grant a new support/resistance flip, which is needed for further continuation to the upside.
Bitcoin SV surged more than 300%
BSV USD 1-day chart. Source: TradingView
The USD chart of Bitcoin SV is showing signs of the old cryptocurrency market, and it surged more than 300% in less than a month.
We currently broke the highs from last summer and are making a huge wick. If the price can close above the all-time highs, continuation is likely. However, if the daily timeframe can’t close above this area, we could see a correction towards $175 or $235.
BSV BTC 1-day chart. Source: TradingView
The BTC chart of Bitcoin SV is showing a similar structure, through which the all-time highs are currently being broken.
First, the price broke through the resistance at 0.016 satoshis, flipped the 0.0188 satoshis level as support, and pumped towards the highs around 0.028 and 0.03 satoshis.
A retrace wouldn’t be unhealthy, and then the levels of 0.03 and 0.027 satoshis are the first areas to watch.
Overall, strong bullish momentum is going on with the altcoins. Still, Bitcoin and Ethereum didn’t make a higher high, which is heavily needed for the rest of the altcoins to follow. Until then, enjoy these movements!
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.