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These Technical Indicators Suggest Three Coins are Oversold

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Traders are often told that technical analysis is worthless.

“Technical analysis is fundamentally flawed,” once noted Forbes.

“Charts are great for predicting the past,” once noted Peter Lynch.

Even Warren Buffett once said, “I realized technical analysis didn’t work when I turned the charts upside down and didn’t get a different answer.”

We won’t argue with one of the world’s most successful investors.

But the truth is – technical analysis does work quite well, especially given its mass adoption.

In fact, technical analysis is often used by cryptocurrency traders.

For example, Ethereum bulls may have found their “line in the sand.”

After slipping from $840 to a $278, ETH selling pressure appears to be fading at the moment.

Granted while the longer-term technical picture may appear unfavorable, the short-term is appealing. Technically, the last time Williams’ %R (W%R) and relative strength (RSI) were this oversold, ETH rallied from $375 to $806. We’re now seeing the same over-extensions now, which could give way to immediate-term upside.

From here, there are hopes it can refill its bearish gap around $500.

Bitcoin (BTC) Found Historical Support

Since February 2018, BTC has a historical tendency to bounce from this price point.

This price has also been supported by oversold extensions on RSI and W%R. In fact, each time W%R has fallen below its 80-line, coupled with RSI at its 30-line, the coin has pivoted higher.

We’re beginning to see signs of this happening again now.

As long as this support line holds, the coin could potentially test $8,000, near-term.

Ethereum Classic (ETC) at Triple Bottom Support

Even with news of ETC listing on Coinbase, the coin has still been pulled lower. However it’s become just as oversold as ETH and BTC.

In fact, we believe it’s overdue for a test of $20. At the moment, ETC caught triple bottom support with oversold extensions on RSI and W%R. Since March 2018, when W%R falls below its 80-line with RSI at its 30-line, ETC bounces.

 

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