Weekly Cryptocurrency Price Analysis: Bitcoin, Bitcoin Cash, Ethereum, NEO, and XRP
The crypto market is back to green after months of registering reds, dipping from their all-time highs. In reality, Bitcoin, Ethereum, Bitcoin Cash, and Ripple did register decent register gains over the weekend. NEO also inched higher despite not getting a mention by CoinBase. However, despite the excitement, realize that coins are moving within a deep bear trend and we need to see movements above certain resistance levels before concluding buys.
Let’s have a look at these charts:
Bitcoin (BTC) Technical Analysis
The narrative is quickly changing and how financial influencers shifted from Bitcoin is “stupid” and “an instrument of money laundering” to “exploring ways of capitalizing on it” will always be a reference point in years to come. The fact that Bitcoin refuses to naturally die and “disappear” with competitors as Fidelity already investing in Bitcoin makes BlackRock explore on the best ways to tap on Bitcoin success.
The difference btw a future & an ETF is that an ETF has to buy the underlying taking liquidity out the market.
When the World’s biggest ETF company is looking at Crypto and the SEC has no real reason to block the next ETF, it could get a little excitinghttps://t.co/eFAYwnGdyN
— Ran NeuNer (@cryptomanran) July 16, 2018
BlackRock is a powerhouse in the world of investment managing trillions of dollars in assets and this is surely an endorsement of Bitcoin. Could this new announcement and reconsideration trigger the next wave of bull pressure and help support Bitcoin prices? After all, fundamental events lead price in crypto thanks to the hype element. In fact, TenX co-founder Julian Hosp strongly believes Bitcoin will probably turn the corner if a major financial player gets into the space.
After July 7 higher highs triggering our buy triggers at $6,800, the next wave of sells on July 9 and 10 was enough to hit our stops canceling the previous bullish proposal. Encouragingly though, sellers didn’t push prices below $6,000 and instead, we saw prices bouncing off our main support line.
Buoyed by July 14 and 15 events resulting in that nice double bar bullish reversal pattern, my trade plan is simple: Risk off traders can load at current prices with stops at $6,000 while conservatives better wait for prices to edge past $6,800 and $7,000 before loading on dips. In both cases, ideal and first targets should be at $10,000.
Ethereum (ETH) Technical Analysis
The debate around scalability has always been a thorn for Ethereum and Blockchain for some time now. It all started last year with cryptokitties, a viral dApp that basically clogged up the network and pumping gas prices.
Now, if Ethereum has plans of becoming mainstream and even contribute to central bank focused ERC20 tokens, the Central bank issued digital currency (CBDC) then it must do something about scalability.
Plasma implementations being almost ready 🙂
The base layer for a central bank currency having $5 txfees is ok; it is after all only a settlement layer
— Vitalik "Not giving away ETH" Buterin (@VitalikButerin) July 11, 2018
Vitalik did voice his support for CBDC saying Plasma MVP, which is already in trial, could potentially solve this. Plasma MVP is an iteration of the total Plasma concept and introduces Plasma Contracts and Child Chains that can process up-to 1,000 transactions per second.
Like Bitcoin, Ethereum is up three percent in the last day resulting in that nice bullish engulfing pattern. Now, as before, we must execute a trade with caution and while aggressive traders can buy at current spot rates, conservatives should better wait for prices to edge past $500.
In our early preview, $500 was our main buy trigger line and any breach of that price level means buyers can begin buying on dips with first targets at $650 or June highs.
Ripple (XRP) Technical Analysis
National Digital Asset Exchange (NDAX) is a Canadian Cryptocurrency exchange that is now offering support for XRP tokens shortly after completing their stress test. At the moment, it is the only Canadian exchange to lend their support to XRP and in that line, users are allowed to make free fiat deposits until the end of the year.
— RippleNewsTech (@Ripplenews_tech) July 15, 2018
While NDAX made the announcement, David Schwartz is now the new Chief Technical Officer (CTO) replacing Thomas Stefan. David was the Chief Cryptographer at Ripple and is deeply experienced in this space after working for different crypto projects in the last eight year.
The only blemish for Ripple is Western Union patenting their own cryptocurrency app with no mention of XRP or Ripple. Remember, it was with much fanfare early this year when Ripple announced their pilot program with the remittance company boosting price in the process.
The 45 cents level is important for XRP and anchors our analysis. Of course, we remain bearish in line with our previous analysis and should buyers edge higher then we must see prices moving above 50 cents.
At the moment, XRP is consolidating horizontally and any move above 48 cents or July 1o highs cancels this position. Until then-and despite a one percent gain of XRP-we remain bearish.
Bitcoin Cash (BCH) Technical Analysis
To counter cryptocurrencies, Nordic banks are now stepping up, evolving in the process. They are now working on a banking solution for settling international transfers within seconds in their new project, P27- which is expected to roll out in 2019.
— Ranganathan J (@Ranganathan_J) July 16, 2018
The project will mostly leverage on their previously successful mobile payment apps as Swish and Vipp and will look towards expanding into Europe providing an efficient and fast payment solution irrespective of currency.
Price wise, Bitcoin Cash is recovering from $600 but still moving inside a channel bound on the upper limit by $850. In my view, it’s better to remain neutral and just like BTC trade plan, we need to see out buy triggers at $850 hit first before settling on buying on dips in a lower time frame.
It’s simple to see why: notice that these higher highs we have been seeing over the weekend is panning out in a deep bear trend. Besides, $600 from where BCH is finding support is a strong support line, 2018 lows, and our main sell trigger line.
Remember, any dip below $600 reaffirms our previous sell trade plan and that’s why it’s important to be neutral until our trade plan is met.
NEO Technical Analysis
It’s okay to be upbeat and even aim for the moon. Fundamentals are pro-crypto with the US Congress referring to them as the future of money. That’s a direct endorsement coming days before a major hearing. Here’s the thing though: CoinBase didn’t mention a thing about NEO.
On to the charts and our sell plan is still intact. As mentioned before, NEO prices are trading within a bear break out pattern initiated after that sell break below $40 on June 10 and 12.
Now, this appreciation is nothing new and it might be a retest of $40-our previous support now resistance. For buys to be valid then bulls must push above $40 and invalidate the bear break out the pattern. If not, then we shall look for sells at or around $40.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.
Dalmas is a Cryptocurrency News Writer and Analyst. He’s passionate about blockchain technology and the potential of cryptocurrencies.