Weekly Cryptocurrency Price Analysis: Bitcoin, Ethereum, Bitcoin Cash, NEO and Ripple
This week, Bitcoin Cash hard fork should be the focus of the week. Maybe its bad coincidence but this is a hard fork happening right in the middle of a strong bear market. Mind you, despite Bitcoin Cash being a top performer in the last couple of week, it is down 23 percent for the week and just like NEO, we anticipate prices to slide further. While on it, the same could happen to Bitcoin and Ethereum with the former likely to print $6,500 if bears are persistent with their drive.
Let’s look at these charts:
While it’s a known fact that there are many pretenders out there waxing the Bitcoin lyrical and ducks when things get hot, Tim Draper, a venture capitalist and founder of Draper Fisher Jurvetson (DJF), isn’t one of them. The love he has for the “future of the money”, Bitcoin is over. It can be felt and according to him, investors should better place their holdings in Bitcoin, a better platform for safekeeping and storage of value.
Now, even as the markets get into a meltdown wiping more than $50 billion of value in the last week alone, next week’s Consensus 2018 might end up jump-starting the market. The event will be held in New York and market influencers including Twitter CEO Jack Dorsey and regulators from the U.S. and E.U. would give their keynotes. Hopefully, the latter would clear the air and reveal where governments stand on matters regulation.
— Cryer (@CryptoHi) May 11, 2018
Price wise, it’s a cold sting for Bitcoin. Yes, we were confident prices could explode past $12,000 last week. However, following that BTC flood from Kobayashi, a Mt. Gox Trustee, the market is now trending below $9,000. This means, week over week, Bitcoin prices are down 12 percent and could probably sink this today. Notice that despite the high volumes, Bitcoin remains below $9,000 and is likely to band along the lower BB.
Besides, there is a stochastic sell signal with diverging percent k and d meaning sellers are likely to gain an upper hand and edge below $8,000. In case that happens, reasonable targets would be at $6,500 and April 2018 lows with entries at every stochastic sells in the 4HR chart.
Of course, even though news of the UpBit police raid continues to spook the market, Ethereum as a service is a solid platform trusted by the community. Yes, we have Tron and their leader Justin Sun who as usual is super excited about the wondrous things Tron can do. Additionally, they completed their airdrop.
As Casper development shift gears, I don’t really know if Tron would match Ethereum in the medium term. Roger Ver, A Bitcoin Cash supporter, and investor, even believes Ethereum is superior to Bitcoin. In his own words, “flappening” could happen this year or by 2020. What I know is, if the market tanks, Tron would feel the pinch more than Ethereum because the latter has deep liquidity and can easily soak shocks.
— NEWSBTC (@newsbtc) May 10, 2018
In our technical charts, it’s clear that sellers have an upper hand. After reversing most of last week’s gains and losing 13 percent in the process, a bearish break down is visible in the daily chart. As visible, prices are now trending below the middle BB, a key support line in our previous analysis and that’s not all, there is this nice stochastic sell signal in place.
In line with technical developments, I shall recommend selling on every high in lower time frame with ideal sells at or around $700. Because of our inclination, ideal bear targets lie at that brief accumulation at $500.
There is one thing that efficiency tags: Efficiency and cost saving. Unsurprisingly, that’s exactly what you get with xRapid, an innovative technology and a Ripple company genius that saves up to 70 percent of costs for companies using them. As if that is not enough, the powers of Codius smart contracts, Cobalt and xVia that could seamlessly connect different systems increases Ripple token (XRP) odds as a long-term buy.
This might be the reason why ZebPay, one of India’s largest cryptocurrency exchanges want to capitalize on Ripple potential and the popularity of Tron. Indian traders can now trade the XRPTRX pairs and benefit from their upswings as the coins benefit from the extra demand.
Zebpay is excited to announce the launch of XRP market for crypto-to-crypto trading. The first pair we're introducing is TRX/XRP. More crypto pairs coming soon. Happy Trading! #zebpaycryptotrading @Ripple @Tronfoundation pic.twitter.com/bWqIoCMx9o
— zebpay (@zebpay) May 10, 2018
Technically, we are net bearish and trading with the market. While XRP is down 23 percent for the week making it one of the biggest losers in the top 5, the fact that the whole market is on a downtrend could worsen the situation. As it is, bears are in charge as stochastics shows and as XRP bear candlesticks band along the lower BB, 45 cents is likely to be hit. Because of this predisposition, selling on every high at or around 85 cents will be a better and profitable strategy. Alternatively, you can wait for any break below 60 cents before trading with the trend.
BCH/USD (Bitcoin Cash)
The hot and cold nature of China’s view of cryptocurrency all but makes the market very interesting. Sometimes back in 2017, they outlawed cryptocurrencies and Initial coin offerings (ICOs) saying they were scams and a threat to the economy. Now, after changing their tone since the beginning of the year, they have taken to rating the top 25 cryptocurrencies including Bitcoin Cash through the China Electronic Information Industry Development (CCID) wing.
As a follow-up, CCID shall publish their coin ratings in the coming week(s). Let’s not forget that Bitcoin Cash shall be “forking” on May 15 as they implement their block size increment from 8 MB to 32 MB. So, full node operators should update their clients before the fork happens.
We cannot refute the fact that Bitcoin Cash was the top performer before last week slump. In fact, sellers are building on that nice bearish engulfing pattern clear in the weekly chart and increasing on their holdings.
In the daily chart, prices might dip deeper in the coming days more so if buyers fail to push Bitcoin Cash above $1,500. Patience is an asset here and the best way to trade is to wait for a close below May 12 lows at $1,270 before initiating shorts. Otherwise, waiting for a stochastic sell signal to print in the 4HR chart before selling can be an alternative and even a better trading strategy.
Like most coins in the top 10, NEO is on a slide and is down 23 percent in the last seven days. However, NEO shouldn’t be dismissed just like that. It’s an Ethereum competitor and is rapidly gaining ground as it advances their smart economy objectives.
In the chart, prices are moving in line with our previous trade plan. Now, there is a little bit of support at $60 and even though we are bearish, buyers might pump prices up a little to $75 or so. From there, NEO bears should search for undervaluation before selling with targets at $40.