Weekly Review: LINK Rallies Alongside BTC

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May 10, 2019 Welcome to the weekly edition of the CoinDesk Markets newsletter! Every Friday we will review our cryptocurrency price predictions posted during the week via CoinDesk Markets Twitter  or our private room on StockTwits, the CoinDesk Dojo.  "Trades You Missed" will feature our favorite trade ideas or technical analysis insights that accomplished impressive gains, where as "Trades We Missed" will feature those that took a turn for the worse. Wins and losses are both part of the trading game, so we hope you will learn how to replicate our successes and minimize losses!   Lone LINK Flies High LINK/BTC: Price: 0.00011460 BTC | MCAP: $252.6 million | Maximum Gain: 27% Why we were intrigued: Price patterns are a staple in the study of technical analysis, so much so that at times it seems there are too many to keep track of.  One of the most reliable and commonly found patterns however, is known as the falling wedge. This bullish reversal pattern consists of an asset's price trading between two falling yet converging trend lines, which depicts weakening sell pressure as each subsequent drop becomes less severe. In order for the bull reversal to take effect, its price must breakout of the pattern to the upside with volume expansion - exactly what we noticed on the LINK/BTC daily chart on May 6th when its price was 8996 sats.  For further breakout confirmation, it was important to scale the most recent high of 9099 sats set on May 3. Once this was accomplished, we knew it was game on.  Not long after, LINK flew all the way to 11448 sats, surpassing the initial target of 10787 sats while marking a 27 percent maximum gain in BTC value from the confirmed breakout. What makes LINK's rally particularly special is that it occurred in tandem with BTC's surge above $6,000. The majority of the altcoin market sold off during this time as funds were being shifted into the market leader - but not LINK.  Looking ahead, LINK/BTC appears to still be trading inside of a falling channel, so the bullish view will be put on hold until its price can find acceptance above the down-sloping resistance.  The Trade The Result EOS Traps Buyers on The Wrong Side of the Market EOS/USD: Price $4.83 | MCAP $4.4 billion | Maximum Loss: 15% Why we were intrigued: The stars were aligning for EOS on May 3rd, at the time showing multiple technical indications that were pointing to significantly more upside.  As many USD denominated cryptocurrency charts were, and still are showing falling channels, EOS had seemingly found acceptance above its own.  Traditionally, this is a promising sign for bullish continuation. What's more, the 100-day moving average (MA) had completed a bullish cross above the 200-day MA and its daily RSI value was registering above 50, which is commonly regarded as a sign of bullish momentum.  All that said, the market had other plans in store, as it often does.  BTC ended up picking up a strong bid late in the week, leading investors to flow funds into the market leader instead of the smaller cryptocurrencies.  EOS was a victim of bitcoin's rally, causing its price to retreat back inside the channel and trigger the stop-loss placed at $4.50. This goes as a reminder that when bitcoin shows bullish strength, it can destroy altcoin setups, no matter how promising they may seem.  Looking ahead, EOS/USD still is maintaining a bullish market structure as depicted by a series of higher highs and higher lows inside of a rising channel. So, as long as the structure is preserved it is likely EOS/USD will test local highs of $6.20 again in the near future. On the other hand, if its price finds acceptance below $4.59 and the rising channel support, the bullish view will be put on hold and cause a dip to previous support of $3.18.   The Trade The Result   We're excited to announce the launch of the CoinDesk Dojo, a premium subscription part of StockTwits' recently announced Premium Rooms product. Ask the analysts—Omkar, Sam and Seb—questions about charts and talk with other traders looking to profit off the volatility of the crypto markets.  Create an account on StockTwits and then subscribe! Subscribe Here   Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. Copyright © 2018 CoinDesk, All rights reserved.  Our mailing address is:  250 Park Avenue South New York, NY, 10003, US  Want to change how you receive these emails? You can update your preferences or unsubscribe from this list