This is a daily technical analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.
As Bitcoin (BTC) continues its impressive rally, traders may want to consider focusing on Ether (ETH) and the BCH/BTC ratio for potential accelerated gains. Both assets have broken through lengthy downtrends, signaling a possible bullish shift in the market, alongside notable movements in popular meme tokens DOGE and SHIB.
Ether Breakout
Today, Ether’s price has surged more than 8%, breaking through the trendline (illustrated in the left-hand chart) that has defined its downtrend from December highs above $4,100. This significant movement indicates that demand has finally overwhelmed the supply zone established by the trendline, marking a bullish shift in the market dynamics.
The accompanying three-line break chart (to the right) reinforces this breakout perspective. This chart focuses on price movements, thereby filtering out erratic price fluctuations and delivering potentially more reliable trading signals. Following this breakout, Ether’s price focus shifts to the resistance zone between $2,300 and $2,400, previously serving as support in October and November.
BCH/BTC
The BCH/BTC ratio has experienced an 11% increase this week, surpassing a trendline that has characterized a challenging year-long bear market. This bullish development suggests that Bitcoin Cash may outperform Bitcoin in the short term, raising interest among traders looking for potential opportunities.
DOGE and SHIB Bottoms
At the time of writing, the market capitalizations for DOGE and SHIB increased by 7% and 5%, respectively, with their charts exhibiting a ’rounding bottom’ pattern. A rounding bottom typically follows a pronounced downtrend, as witnessed in the cases of DOGE and SHIB, signaling a transition to a bullish market. This pattern indicates a shift from lower highs to higher lows, suggesting that buying interest is gaining traction.
