Weekly Cryptocurrency Price Analysis: Bitcoin, Bitcoin Cash, Ethereum, NEO, and XRP
The crypto market is recovering and we can have a better picture if we take a top-down approach especially from the weekly chart. Overly, Bitcoin (BTC) is towing other altcoins as NEO, ETH, and BCH simply because of the existing positive correlation. However, while our BTC longs are active my suggestion is patience until key resistance lines are cleared in NEO, ETH, and BCH allowing for buying on dips.
Let’s have a look at these charts:
Bitcoin (BTC) Technical Analysis
Interestingly, CoinBase is active on a lot of planes. Not only is it literally jerking the market by announcing “exploratory” activities on several high liquid coins as Cardano (ADA) and Stellar Lumens (XLM), but it is offering several prime services for moneyed institutional investors as hedge and pension funds. These kind of investors are naturally risk-on traders and don’t like direct exposure especially in the crypto sector which is not only volatile but the laws around them are still globally fuzzy.
However, it seems like CoinBase efforts are finally paying off with the announcement by “people familiar” with the deal that the San Francisco based exchange has finally on-boarded a hedge fund with a $20 billion valuation.
As expected this is some sort of approval and front page cover news in the crypto verse coming at the time when there are a lot of expectations as the market exhibit signs of bottoming out. This is surely positive and might even unlock doors for more funds to join in and stabilize the market.
Price wise, Bitcoin (BTC) is stable and up three percent in the last 24 hours. Even though there was this slight dip over the weekend, yesterday’s injection of buy momentum is supporting prices and keeping our BTC long trades active. For those who are searching for BTC buy entries in lower time frames, our ideal buy zone is between $7,100 and $7,300 with overall buy targets at $10,000 and stops at around $7,000 previous support now resistance.
Ethereum (ETH) Technical Analysis
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Of all the coins under our focus, ETH is lagging and in the last 24 hours, for example, it is up one percent. Aside from the stagnation, ETH prices are still trending inside a $150 trading range with main support at $400. As laid out in our previous Ethereum technical analysis, we need to see movements above $550 for our bull flag and bullish break out pattern to hold true. Before that happens, my recommendation as before would pretty remain constant: Neutral with sell expectation since we are in a bear trend.
XRP Technical Analysis
Considering the level of FUDs, it’s a surprise that XRP is still standing tall rejecting price capitulation below 45 cents, our main support line. From SEC delays, Hedge Fund managers throwing shade at it and to CoinBase failure to list the coin despite its popularity, XRP still remains the third most valuable coin in the world.
What’s even better is that Ripple the company is tireless in pitching their ideas to companies. So far, and in the words of Cassie Craddock, who is the Ripple Payment Specialist, the aim of Ripple is to bring down the speed of global payment from several days to at most five seconds.
That’s Ripple overall master plan and with their specific use case, many commentators reckon that there is a lot of upside for XRP, its liquidity tool.
Back to price and after three retests of 45 cents in the last three weeks, it’s safe to say that 45 cents are our main support line in line with our previous XRP trade plan. What we now have in the daily chart is a triple bottom illustrating the reliability of 45 cents as an anchor point.
All in all, our trade plan dictates that any strong or convincing close below 45 cents would be beckoning for sellers. On the flip side, any break out above 55 cents and July highs will usher in buyers who might drive prices back to 70 cents and later $1. Before any of that happens, we shall be neutral and wait for breakouts in either direction.
Bitcoin Cash (BCH) Technical Analysis
As American sanctions on Iran take a tool on their currency and economy, cryptocurrency and BCH are proving useful. They are not only a medium of exchange for various services as hotel bookings and what-not but as a hedge against the inflation that is rendering Iranian Real useless.
In our charts, BCH is stable with a bullish skew. In the last three weeks, price action has been printing these higher highs. Even though BCH buyers are yet to break above $850-July highs and trigger our BCH longs, odds are, we might see that happening this week.
On a week over week basis, BCH is up 12 percent resulting in that bullish engulfing pattern in the weekly chart and this that anchors our bullish assertions. Because of this, my Bitcoin Cash trade suggestion is to wait for breakouts above $850 then buy on dips with first targets at $1,300 as spelled out before.
NEO Technical Analysis
Cryptocurrency is a nascent development in the finance sector and like everything that’s in their baby steps, in-house activities are exciting.
This might be the reason why Melvyn Goh, an experienced and award-winning manager who was also the former Forbes President for China agreed to be a strategic advisor for Moonlight, a project that runs on the NEO blockchain. Moonlight wants to enter into the HR space and would leverage on NEO’s proven blockchain.
In the meantime though, NEO-like BCH and ETH are flat though it did register some gains last week. While the market recovers and momentum shift from bearish to bullish, $30 will be our NEO minor support line and should price edge past $40 nullifying this bear break out the pattern, then we shall recommend loading NEO dips with first targets at $90. In that case, safe stops would be at $30.
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.