Last week, we published an article to show that the altcoins season has begun. While the five alts included in the article have neither skyrocketed or consolidated, all of them have traded within the support and resistance levels that we have mapped. In other words, they have either bounced or retraced after hitting a support or resistance area. We’ll do more of the same as we start a fresh week.
In this article, we found a new batch of altcoins looking to make big moves. Here are the five altcoins to watch this week.
1. Selfkey/Bitcoin (KEY/BTC)
The KEY/BTC pair came off lows of 0.00000066 on August 14, 2018. From that point, Selfkey has been on the up and up. On October 28, the market took out resistance of 0.00000115 with heavy volume. This triggered the breakout from the ascending triangle pattern on the 4-hour chart. Since then, Selfkey has been on a rampage.
Follow the same drill as instructed last week. Once the market breaches resistance number one (R1), the next target is R2. Take out R2 and R3 is the next target and so on. While following this process, it is crucial to remember that a resistance becomes a support once the market takes it out. For example, if Selfkey goes above R1, then the old R1 becomes S1 and the previous S1 becomes S2.
Back to the chart, if Selfkey flips R1 into a support, then R2 and R3 become easy targets. However, the real prize for the market is R4. We’ll see if the market reaches that target.
2. Monetha/Bitcoin (MTH/BTC)
The Monetha/Bitcoin pair is up by over 130% from the low of 0.00000266 on September 12. It appears that the party is just getting started. MTH/BTC looks ready to reverse its trend and pump.
MTH/BTC 4H chart
The market appears to be creating an inverse head and shoulders pattern on the 4-hour chart. It has recently respected S1 and it is now preparing to take out R1. If and when it breaches R1, Monetha would generate a lot of bullish momentum. The breakout will attract breakout traders and trend followers. At that point, R2, R3, and R4 become easy targets.
3. Raiden Network/Bitcoin (RDN/BTC)
RDN/BTC has increased by more than 90% from the low of 0.00004716 on August 14, 2018. Though the gains may not be as impressive as others on the list, the market offers a favorable situation for someone looking to enter the market. The chart shows that Raiden Network is positioning to start a monster bull run.
4H chart of RDN/BTC
RDN/BTC is currently creating a cup and handle reversal pattern as it manages to stay within S1. On top of that, it generated a bullish pin bar that solidified S2. These indicate that the market is rejecting lower prices. In other words, market participants are happy to buy the dip. The increase in demand tells us that bulls are working hard to establish a solid base at S1 in preparation for a rally above R1.
Once RDN/BTC breaks out of the cup and handle structure, we can expect the pair to take out R2 and climb as high as R3.
4. Wings/Bitcoin (WINGS/BTC)
If you bought the bottom of Wings at 0.00001702 on September 12, your investment would be up by over 100% when it went as high as 0.00003439 on October 14. Though WINGS/BTC has been pulling back since, its price movement shows a lot of potential.
4H chart of WINGS/BTC
A quick look at the 4H chart reveals that the market has breached resistance of 0.000027. This enabled WINGS/BTC to break out of a large inverse head and shoulders pattern. The breakout pushed the market above R1 and allowed it to briefly touch R2. While WINGS/BTC has retraced, bulls are buying the dip and creating a new base at S1. If S1 holds, R1 to R3 will be achievable.
5. ETHOS/Bitcoin (BQX/BTC)
Last but certainly not the least is ETHOS/Bitcoin. If you caught BQX/BTC when it came off lows of 0.00004324 on September 12, you would be up by 37% today. It is not much compared to the other alts on this list but the market shows a lot of promise.
BQX/BTC rallied to as high as 0.00007306 on October 21. While the pair has been correcting since, it gives us an opportunity to enter the market when it retests S1. A successful retest would confirm the bullish higher low setup. This should help the market generate the momentum it needs to take out R1.
Once bulls breach R1, R2 and R3 are on the menu. What’s interesting about ETHOS is that resistances tend to have a wider gap after R3. This means BQX/BTC has the potential to launch a powerful bull run if it can take out R3.
The altcoins season is in full swing. In this article, we’ve shown why you should keep a close eye on KEY/BTC, MTH/BTC, RDN/BTC, WINGS/BTC, and BQX/BTC. These altcoins have the potential to make big moves this week. Be sure to keep them on your radar.
Featured image courtesy of Shutterstock.