Weekly Cryptocurrency Price Analysis: Bitcoin, Ethereum, NEO, Bitcoin Cash and other major coins
From the news
Gone are the times when announcements from social media channels had an influence on cryptocurrencies. As we saw this past week, the announcement by Twitter and Snapchat that they are banning cryptocurrencies and ICO related advertisements kept the pressure on these digital assets in general. Tokens got a reprieve from CoinBase declaration that they plan to support ERC-20 tokens in the future. Even though they didn’t mention which token they plan to support, it was still positive news for tokens.
In the meantime, news that LitePay was winding down operations even after Charlie Lee shill led to further erosion on Litecoin. Earlier, Litecoin Foundation was confident that LitePay was hard at work on-boarding merchants and this was obviously positive to Litecoin. Days later, the apologies from Twitter ran havoc on price after Asare, the CEO and Founder of LitePay dropped the bombshell that they were shutting down operations. It turned out that Asare wasn’t paying his taxes triggering regulators to hunt him down.
Talking of regulators, news from Nikkei Asia Review that the JFSA had warned Binance to cease operation in Japan turned out to be “irresponsible “journalism according to Binance CEO Zhang. In his own words, there was no need to worry but what we know for sure is that Binance will open offices in Malta. On the same vein, BitFinex is weighing options of opening some of their offices in Switzerland.
This is what we are seeing on our technical interactive charts:
Most economies treat Bitcoin and cryptocurrencies in general as securities and taxable properties. That’s a veil meaning that volatility of these digital assets depends on volume and unfortunately that’s not what we are seeing despite yesterday’s flash gain.
1/ For the first time in Bitcoin's history, transactions per day are not increasing. We are around October 2015 tx levels. This, imo has to turn around for value to substantially increase. Economic Activity = Value. Less Economic Activity = Bearish pic.twitter.com/Vt152fiTza
— Joseph (@josephkunzler) March 31, 2018
Of course, a $300 gain in 15 minutes is what we want to see. Irrespective, low transaction volumes mean low economic activity meaning illiquidity, which welcome bears in a midst of increasing listing and impressive Lightning Network LApps in the past week.
Welcome to the #WeekofLApps! @Blockstream is introducing 7 new #LightningApps (#LApps) over 7 days. The first #LApp is #FileBazaar, an app that enables #Lightning #micropayments for creators that produce digital files like photos, videos, or docs. https://t.co/mJGp1xROO9 ⚡️🛰️ pic.twitter.com/yGpFhAm8sd
— Blockstream (@Blockstream) March 22, 2018
Technically, week ending April 2 was bearish and a perfect drop from 61.8 percent Fibonacci level at $8000. It will be easy to trade Bitcoin and basing our projections from Bitcoin technical analysis and charts, prices might slightly recover.
Again, this is normal especially after a $2000 coming within a 7-day space. There’s a bullish engulfing pattern in the 4HR chart and even though prices might move up, sellers should wait for sell signals to print anywhere between $7500 and $8000-the 61.8 percent Retracement line retest. From there, they can sell and aim for $6000 and $4900 in the coming week.
Right from Huobi announcement to recent CoinBase announcement that they plan on supporting ERC-20 standards, Ethereum should find support and at least inch higher.
We’re excited to announce our intention to support the Ethereum ERC20 technical standard for Coinbase in the coming months.
— Coinbase (@coinbase) March 26, 2018
That’s what should happen but practically, the news seems to dump prices further. Even though CoinBase were very specific shying to fuel rumors of any particular coin being listed, Ethereum surely stands to benefit and should help drive or at least change sentiment in this deep bear market.
Technically, from our Ethereum technical analysis, prices are at key support levels. As it has been the case, $400 remains a key tag and it’s where buyers found resistance for the better part of 2017 before that explosion.
In my view, prices might recover this week and that’s why I recommend short-term buys with first targets at $450 and $575 especially if there a thrust above $410. That’s important because prices will be above a main resistance trend line in the 4HR chart.
If we integrate recent fundamental development with price action, then it’s obvious that Ripple might be making a U-turn. LBX, the only multi-cryptocurrency exchange in the UK is jumping in first and capitalizing on Ripple demand.
As it is, it is the first exchange to offer an XRPGBP pair for its customers and as it is, listing and price action have a positive correlation. Besides LBX, Huobi is adding its offering and adding 100 more trading pairs and cumulatively this should help prices recover as an adoption of XRP and XRapid as WU demonstrates.
Western Union promoting their new international money transfer app in the Netherlands… pieces of the puzzle are starting to fall in place, powered by #Ripple and #xrp maybe…? @TeenageBuffet , what do you think? pic.twitter.com/89sauw10ub
— Rhogew (@Rhogew) March 31, 2018
Technically, I recommend short-term buys with trailing stops. Deep in this bear trend-which we are still net bearish unless otherwise, buyers should buy when prices breach above 52 cents. Stops should be below last week’s lows at 45 cents with targets at 70 cents.
BCH/USD (Bitcoin Cash)
Depending on how you look at it, Bitcoin Cash and Roger Ver are likely to cry at the showers. First, it has to do with the rapid collaborative development of Bitcoin and Lightning Network. Yes, we can talk about Satoshi’s decentralization vision but a small number of fellas control BCH when it comes to validation.
With Blockstream stepping up development of Lightning Network Apps and validating nodes picking up, BCH’s first stops is at $280 if the last week’s rate of depreciation remains constant. Remember, Kucoin de-listed BCH trading pairs citing “liquidity” concerns in a letter to their users could exacerbate the situation further.
On the flip side and of course from Bitcoin Cash Technical analysis, prices might recover and if they do, sellers should find opportunities at $750 and $850 on the upper side.
All altcoins are suffering the brunt of these bears and NEO is no exemption. Over the past week, we have seen some important news. Starting on April 4, 2018, the NEO tour will start from Amsterdam and during that time, the smart economy company will be announcing 6 projects.
6 of them are being unveiled at neo europe tour Amsterdam 4/14 pic.twitter.com/tEf57tTaZs
— Cryp Pratt (@CrypPratt) April 1, 2018
It’s not a surprise because we already know that besides CoinEx subscribers now having an option of buying some NEO, NEO is already funding start-ups and Bluzelle is one of them.
— Sebastian Wurst (@sebastianhrw) April 2, 2018
From the chart and we are still bearish but if buyers break and close above $55, we expect bulls buyers to find resistance at $80 and $90. Within that gap, traders can begin looking for stochastic sell opportunities with a realignment of bear targets. In this case and from NEO technical analysis, sellers would aim for $50 and $25.
Evidently, Litecoin is tumbling and $100 is surely the next viable stop. We can pin the genesis of all these reds to Charlie Lee publically apologizing as LitePay went under.
Like everyone else, we got too excited about something that was too good to be true and we optimistically overlooked many of the warning signs. I am sorry for having hyped up this company and vow to do better due diligence in the future. https://t.co/khIjeHnyZ1
— Charlie Lee [LTC] (@SatoshiLite) March 26, 2018
According to him, the $50,000 funding LitePay is now down the drain because SatoshiLite didn’t do enough due diligence and instead channeling money to Asare who never bother filling tax returns.
So, it’s over for LitePay but billions of USD is gone for Litecoin investors. Abra’s Litecoin smart contract announcement didn’t appease sellers either. Maybe LitePal would be a better option and shore prices.
From price action, that bullish engulfing pattern and bullish divergence pattern might help buyers. However, sellers could instead find perfect loading points anywhere between $130 and $140 whenever a stochastic sell signal prints from deep the overbought territory.
IOTA is trending at a precarious level-price wise but on the development front, shillers can smile. First, IOTA trinary nature and the scarce wallet support is a big problem. However, with a revamp of Trinity which is in Alpha stage should be encouraging.
— IOTA (@iotatoken) March 29, 2018
That revelation alone was enough positivity temporarily propelling IOTA to the top 10 spot according to CoinMarketCap statistics. Propping this coin further is the Ledger support plan which would enable coin owners to manage their coins in Ledger hardware wallet via Trinity.
From the chart and we can look for selling opportunities especially if bears persist keeping prices below $1. In the 4HR chart, there are attempts of higher highs and from our IOTA technical analysis, potential liquidation lies at $1.25 and $1.5 at the upper edge. Anywhere there is a stochastic sell signal and a confirmation, bears should enter and aim for 61 cents.
XLM/USD (Stellar Lumens)
Like all altcoins, Stellar Lumens is also struggling to make meaningful gains. In fact, prices have been in a range mode finding support at 50 cents. As it is, room for a possible upside is high. The reason why this coin is high is probably that of IBM involvement.
It's LIVE… – IBM on Stellar Lumens.
— Stellar Lumens (@StellarLumens) March 25, 2018
This giant supports this coin and plans to use it for in cross-border payment methods going forward. Furthermore, Stellar plan for a Lightning Network test in April and a beta version four months later in August could be positives for Lumens.
— Stellar (@StellarOrg) March 19, 2018
Trading this coin will be simple and the daily chart provides a clear picture. I recommend buys only if prices break and close above 25 cents, our immediate resistance levels.
All charts courtesy of Trading View
Dalmas is a Cryptocurrency News Writer and Analyst. He’s passionate about blockchain technology and the potential of cryptocurrencies.