Cryptocurrencies Outlook – Friday, May 4

Discretionary outlook based on charts

  1. Bitcoin is getting ready to breakout from $9700 to $11,700
  2. Ethereum has broken out. Next target at $900
  3. Bitcoin Cash is getting ready to breakout.
  4. If Bitcoin breaks out, Litecoin will follow and reach $220

1 am: Bitcoin is getting ready to breakout from $9700 to $11,700

Bitcoin is hovering under its $9700 resistance, getting ready to breakout. Once this does happen, Bitcoin will head towards its $11,700 resistance (multiple previous resistances here).

The defining characteristic of a “bear market” = “lower highs and lower lows”. The previous highs was at $11,700. As long as Bitcoin doesn’t break above this resistance, then it is stuck in a bear market and will probably head lower.

But if Bitcoin breaks above $11,700 (i.e. makes a higher high), it’s a big sign that a new crypto bull market may be starting.

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1 am: Ethereum has broken out. Next target at $900

Ethereum has broken out above its $700 resistance level. The minimum target for this breakout is $900, and the maximum target is $975-$1000. There were previous resistances at these levels.

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$975-$1000 is the bull/bear line. Ethereum is still making “lower highs”, so a break above $1000 would be a higher high. When that happens, Ethereum’s bear market pattern will be broken.

1 am: Bitcoin Cash is getting ready to breakout

Ethereum seems to be the first major cryptocurrency that has broken out. Bitcoin Cash is following suit – it is on the verge of a breakout.

If Bitcoin Cash breaks out above this $1570 resistance level, its next target will be $1950. That’s a 38.2% retracement of its entire bear market.

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1 am: If Bitcoin breaks out, Litecoin will follow and reach $220

These major cryptocurrencies are all moving in the same direction now. If Bitcoin breaks out (which it probably will, because Ethereum has already done so), then Litecoin will probably follow suit.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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