Litecoin & Ethereum Breakouts | Crypto Technical Analysis | 3 September 2021
Aka the weekend right. So lets start off by jumping into a couple of daily charts. I just want to walk through first and then well talk more nuance on the four hour, but in terms of relative strength, relative weakness theres clearly been an explosion in litecoin and ethereum over the past couple of days and again i just wanted to highlight that, from A larger perspective daily time frame chart, and not so much just from the four hour, which we typically look at so for now, noticing that we are consolidating here, which again is striking me as price acceptance around these areas. After making the move up and out of this overall range from the daily, so decent relative strength here inside of bitcoin flipping over to something like litecoin again, you can clearly see that we are moving out of this overall range that we were stuck in for quite Some time with authority headed into friday here so definitely better strength. Inside of litecoin now, im not saying that to say you know: buy litecoin versus uh, bitcoin uh that might be chasing at this point in time, but im just again trying to give you a broad picture before we dive down into that four hour time frame. Ethereum again, a huge explosive movement in the latter half of the week outside of this pennant pattern that we had put in so, if youre, watching that good breakout happening here. Cardano brings me to my next one, which is a little bit stagnant and thats.
Fine, because really this one has had the relative strength baton for so long. I mean just look at this compared to everything we just talked about, which is barely you know, just starting to break out of this range uh in in terms of relative comparison right. So i would say its okay, that cardano is giving the other coins some time to shine. Essentially then well get into some of the uh. You know alt coins here the doge coin, obviously just going sideways. Nowhere near the peak high and peak euphoria over here ripple. Actually, looking okay right, moving out of this overall range and starting to form a really healthy, looking actually cup and handle pattern. The reason we like this consolidation here is, of course, because its above the prior area from in here and then well finish it up with stellar and noting that, although it is certainly starting to form that cup and handle not quite as healthy, noting that this consolidation Is not quite as high or even above this prior area from in there, so just a quick, broad overview from the daily perspective now lets drill down and give you some more nuanced thoughts. Some potential trade ideas here from the four hour time frame chart so looking at bitcoin. Clearly, as we discussed in last weeks, video, it had more overhead supply to essentially work through in this area of the chart, and it has since done a really good job of doing that bull flag here breaking out, i would say, as long as this remains above 50 000 per coin continue to have a bullish outlook inside of bitcoin, and i would argue the next break is really going to be a doubling of this range here and if we just scrunch this chart up for uh targets sake.
We have 53 134. As we know, that comes from daily structure scrunching this way up uh this isnt too pretty to look at, but you can see if i do something like that: theres, where that number is coming from so prior support, support, support, support in here as well, so thats. Why we think that should act as resistance going forward if we can clear uh that 51, 3 51 300 mark and then obviously after that, its really this larger range to contend with? We would monitor for continuation up into 60k im, not trying to say it gets there all in one day, all in one weekend, all in one week month so on and so forth, but thats really the next major uh point of contention that we can see from That four hour perspective, so things do look good for more upside again, if we break underneath 50 000 start to raise some more question marks, what that might start to be would be more of a look above and fail, in which case we have this range. That would be a look above fail back down under 50k. Give or take. I would argue, the target should be the bottom end down here around 47 477 per coin. Next up well, take a look at litecoin. As we know, this one was exhibiting extreme relative strength. Breaking out of this balance, which we had here and just based on a quick doubling rule, obviously we have fulfilled that upside target.
I would say not the time to be chasing litecoin right now. You really want to get in on some sort of pullback. That way, you have a risk friendly entry. You put your stop underneath pull back lows and then wait for that. Next, continuation move higher so again, not really encouraging you to just blindly be a buyer up here, rather waiting for some structure and then making an educated decision. One thing i do like doing whenever were dealing with large expansions of range is taking out the fibonaccis from low to high, and you can see that the 38.2 pullback happens to be around 204, and that would be the first. You know ideal place that we see some sort of pullback happen to and then a reversal out of again thats an ideal world, but i would say, as long as it holds structure as well. This white line here that we have lets just call it 200 dollars for splitting some round numbers sake. As long as we remain above 200 on the pullback, i would argue, thats a healthy and you know well respected pullback. You would want to see volume die off when that does happen, to ensure that sellers arent really grabbing a foothold, and just you know maybe theres some profit taking going on so litecoin still does look phenomenal to the upside. If we break out over this high lets clean that up next overhead targets really way up there at 240 per coin next up well take a look at ethereum.
As we know, this one has been moving as well. Large things well not large, but a lot of big projects happening in the nft space which may be driving prices of ethereum as well. They kind of work in tandem right, and we clearly are starting to see a breakout of this four hour bull flag in here. So that does strike me as healthy as long as we hold this 38 36 on any back test like that. Continue to have a bullish outlook looking for reversals to take us higher into the next overhead target from the daily perspective, which is at 42.16 and then 43.77 scrunching the chart up. So you can see where thats coming from well make it auto again were not cherry picking the high first. We really want to be aware of that 4216 coming in from that cluster before and then, of course, the all time high after that here inside of ethereum. If we give up the this on the pullback right and we break back down underneath, i wouldnt be so interested in buying this and really wait to see what happens at 35.82 instead. Next up, we have cardano and again this one is giving the relative strength baton off to litecoin and ethereum. Clearly, but one thing i would encourage you to do is maybe look at this as a support, trendline and just note that were riding this right as long as we remain above, it continue to have a bullish outlook looking for breakouts over this most recent pivot high Around three dollars and five cents, you can look at the decimals here on the screen: uh, so breakout, doesnt sue over that into blue sky territory.
So theres no real, saying how high this could go. You know where the pullback will come from youre, just monitoring for continuation, in that case, on a sideways break here of that support trend line which we just outlined its not the worst case right. Obviously, if it starts breaking aggressively through price thats, a different story, but if it goes sideways through its not the end of the world, it just wouldnt be in play so much anymore, and instead you just wait. You know to see what type of consolidation forms does it respect this 292 area or again? Does it start breaking down further, in which case the line in the sand, as we know, has to be kind of in here around that 2.73 mark? Ideally, though, it does consolidate sideways in this range and then catch up with the rest of the coins by seeing a breakout again just its a trade idea, it doesnt mean it has to happen, but thats, ideally how you would play cardano in this situation next up. Well, go on over to the dogecoin and look at it a little bit uh. You know more granularly than just from that daily perspective. Clearly, just going sideways, not exhibiting as much relative strength, but if you just think about trend continuation, we certainly have a big l down here for major low. This, of course, would be your next higher low and as long as we hold on to this general area in here, i would consider this a higher low.
The next obvious step for uptrend continuation would be taking out these highs and then forming a new higher high. So, looking for the breakout up and over about .3071 because obviously were trading, you know sub 50 cents. Even it is important to note these decimals here, uh to be technical with your entries and the next target that im really seeing from this perspective here would just be up in this area around 0.3266, so thats, how were looking at dogecoin could see upside continuation right If people are getting re excited about crypto, if litecoin and ethereum really spark some new interest, that could certainly be on the table for the course of the long weekend. Next up were going to take a look at ripple again. This one is showing some decent relative strength from that daily perspective, just showing you that consolidation, one more time above the prior highs in here, so that does strike me as bullish again really seeing the opportunity arise at the top end of the range or the bottom End of the range of course, were at the top in this instance, so the first thing id love to see. We already did get a small pullback here so id love to see, maybe one more high or low love to see it hold this 1.288 and then boom a breakout of the range to take us into some next overhead daily targets, which in this case we dont Have any mapped out from a doubling perspective lets do this first, so this is our range.
Ideally, when we break out of a range we double that to the upside, and it just so happens to coincide if we just uh move this over to the right here. Actually, not sure can that move? Okay, so you cant see it behind that usd but its uh 1.55, so a dollar and 55 cents to the upside would make a range doubling uh target. There lets clean that up and now zoom way back out. Do something like this to see if theres any structure that we can really contend with from way back here, and what are we seeing? Maybe 1.55 makes sense right if we do something like this hover, the cursor and uh 1.55 would be right about here. You can see that is aligned with some prior structure, so that does strike me as a reasonable target, but maybe before we get there, we see a small bump in the road around some of this midpoint right around 1.44. So please keep that in mind. If you do decide to trade the ripple here and we get that situation ultimately playing out, if we give up 1.288, then look for lower, probably to come back down into that 1.22. I would really expect chop – or maybe some sort of support, better support here in the midpoint of the range for maybe a a major higher low and then something like that. That, of course, would be respecting a trend line that could be formed with anchor here and touch one right here.
Next up well wrap up the video with uh stellar here and this one again, its its probably not the best choice. In my opinion, for one of these coins to trade, clearly some good volume coming down as the breakout has been happening across crypto uh, but for now we did see the pullback already now were breaking out making a new higher high. If we do that, get continuation monitor for a pullback to now form at 0.385 right. If we get something like this, ideally it forms above our 0.3681, but there is, you know, room to essentially pull back to here. Do something like that, thus getting uptrend continuation, really the breakout happens over 0.3858, simply because we have all these touches from in the past. That will start to act as a small pressure cooker top. There should take us into this next major area of resistance at 0.40′. So this one i mean you know it does have some merit, but just remember that its not quite as relatively strong as the rest of our coins. The last thing i want to mention is something that someone brought up in the discord, which is btc.d, which is going to show us the dominance of bitcoin here, and i thought it was really interesting. Just something that i might you know share with you guys before wrapping the video up, and all this is going to do is just show us the bitcoin um market cap versus the uh rest of the coins that are out there and right now.
You can clearly see that its in a slight lower, which just means more smaller coins out there are getting acceptance, bitcoin, isnt dominating the crypto market, so much – and i think thats interesting right. So, although bitcoin is seen as the godfather of crypto, there are certainly a lot of opportunities popping up across the crypto space, and this is certainly backing that theory. So if you enjoyed todays video, if you learned something new about crypto, let me know down below in the comments section or by giving the video a thumbs up.