Breakout Alert: Ether, Bitcoin Cash-Bitcoin Ratio Break Downtrends as DOGE, SHIB Bottom Out

This is a daily technical analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole. Traders looking for tokens that may see accelerated gains as bitcoin ( BTC ) rallies might want to focus on ether ( ETH ) and the ratio between bitcoin cash ( BCH ) and bitcoin. Both have broken prolonged downtrends alongside bullish bottom formations in leading meme tokens DOGE and SHIB. Ether breakout Ether’s price has surged more than 8% today, piercing the trendline (see the left-hand chart) that represents the downtrend from December highs above $4,100. In other words, demand has finally managed to overpower the supply zone defined by the trendline, confirming a bullish shift in the market trend. The three-line break chart (on the right) shows a similar breakout. The line break chart focuses on price movements and changes in trend while ignoring time, helping traders filter out erratic price movements and noise. As a result, signals on the line break chart are considered more reliable and durable signals. The breakout shifts focus to resistance between $2,300 and $2,400, the support zone from October and November. BCH/BTC The ratio between U.S. dollar prices for bitcoin cash and bitcoin has risen 11% this week, topping a trendline characterizing the brutal year-long bear market. The bullish development suggests BCH outperformance relative to bitcoin in the coming days. DOGE, SHIB bottoms The market caps for DOGE and SHIB were up 7% and 5% at the time of writing, with their respective daily charts showcasing a “rounding bottom” pattern. A rounding bottom happens after a significant downtrend, as in DOGE and SHIB’s cases. and signals a shift to a bullish market. It shows a change from lower highs to higher lows, indicating that buying interest is starting to increase.

Source: CoinDesk