ETH and BCH May See Accelerated Gains as Bitcoin (BTC) Rallies

This is a daily technical analysis by CoinDesk analyst and Chartered Market Technician Omkar Godbole.

Technical analysis concepts: traders can use technical analysis to identify levels that may limit bitcoin's rally.

Bitcoin (BTC) may be hot, but traders looking for tokens that may see accelerated gains as the largest cryptocurrency 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, which trades at $2,264 at press time, 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, which focuses on price movements and changes in trend while ignoring time, helps 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.