Altcoins have performed incredibly well against the US dollar since late July.
However, many of them are starting to look appealing even against Bitcoin. Perhaps none more so than VeChain (VET).
I’ll discuss the structure I’m eyeing on the VETBTC chart in today’s issue, along with where the market could be headed over the longer term. We’ll also dive into some chart analysis, including but not limited to BTC, ETH, LINK, MATIC, and ADA.
Let’s get it!
VETBTC Long-Term Analysis
VeChain is looking better by the day against Bitcoin.
VETBTC has trended lower since April, which is expected as altcoins tend to be more volatile during BTC selloffs.
However, the pair looks incredible when you take a step back.
Viewing the weekly time frame, you can see where VETBTC recently bounced from the 200 sat level. That was key resistance in July of last year.
There’s also a descending trend line from the April high, suggesting a wedge pattern of sorts.
But that’s not all.
Things get really interesting when we zoom out further to view the ascending channel that started twelve months ago.
Notice how the 200 sat retest also revisited the bottom of this channel.
This longer-term structure of VETBTC makes the descending trend line a lot more interesting. While there’s no guarantee that a break above it would revisit channel resistance, it should at least trigger a move to 450 sats.
Now, if the bull market does continue and Bitcoin reaches as high as $200,000, as I’ve detailed previously, it would put the price of VET much higher.
A retest of channel resistance at the end of 2021 with Bitcoin near $200,000 would give us a VET price near $1.3.
Will any of that happen?
It’s too soon to tell. For starters, Bitcoin needs to take out its all-time high at $65,000. Do that, and the bull market is likely to continue, in my opinion.
Bitcoin continues to test critical resistance near $46,000. As I’ve mentioned on Twitter recently, that area actually extends as high as $49,000. That was the April 25th closing price.
The $46,000 region is also the intersection of the descending trend line from April.
It’s going to take a convincing close above this entire resistance area for BTCUSDT to climb higher. However, I also think a close above $49,000 would imply a continuation of the bull market, so it’s a big deal.
A rotation lower from current levels would likely find support at $40,000, but the $42,500 area would, of course, come first.
ETHUSDT is trying to break out today above the $3,190 area. I discussed this level in Tuesday’s video.
As paying members know, I got long before that breakout, and I’m still long ETHUSDT today.
My target is between $3,530 and $3,700. That’s a resistance area based on the price action in May. It’s also the 78.6% Fibonacci retracement of the latest correction.
A close above $3,190 should flip the level to support.
LINK has nearly doubled since I bought just above $15. Of course, I got out of that long at $19 and exited the rest at $24, so I can’t complain.
As I explained to Cryptocademy members yesterday, the $27.50 area could attract a few sellers as it’s the 50% retracement of the correction.
That said, a daily close above $25 should flip the area to support.
If LINKUSDT can get above the $27.50 area, there isn’t much stopping a run at $35.
MATIC is having a massive breakout day, up 23% so far and breaking well above the $1.20 to $1.25 area.
The market has also carved what appears to be an inverse head and shoulders. I mentioned this structure this morning on Twitter.
The measured objective of the pattern is near $1.75, which is close to the $1.70 pivot. Notice how it served as support in late May before flipping to resistance in June.
A daily close above $1.35 should flip it to support. Below that is $1.25.
ADA has gone vertical this week following the breakout above $1.50.
I mentioned the confluence of support at $1 several times during the first half of July. I only wish I had bought more on that retest.
ADAUSDT is encountering some resistance today at $1.84. That’s where the market topped out following the May 19th selloff.
It will take a daily close above that to flip it to support and expose the all-time highs.
Alternatively, a rotation lower from $1.84 would likely catch a bid at $1.50.
VET is having a nice day, currently up about 8% and approaching the 50% retracement of the correction near $0.125.
That will be a big hurdle for buyers, but the $0.15 level could be even more substantial.
As for support, the $0.103 area should attract buyers if tested. Below that is $0.097, followed by $0.09.
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