Weekly Cryptocurrency Price Analysis: Bitcoin, Ethereum, Bitcoin Cash, NEO and Ripple
Even if China is thawing to the idea of blockchain and creation of smart economies as NEO suggests, the cryptocurrency market upsides, as it is, remain restricted. Yes, there is potential for further expansion but unless buyers manage to gain momentum and surge past key resistance lines, South Korea’s efforts of legalizing ICO’s won’t mean anything much to traders.
Let’s look at these charts:
Undoubtedly, Blockchain and even cryptocurrencies can be put to good use. That’s exactly the reason South Korea’s Financial Service Commission (FSC), in charge of the country’s financial regulatory oversight and some representatives of the ruling party, and the Democratic Party are considering legitimizing ICOs in the country.
Of course, this is music to coin holders especially those who own Bitcoin and other highly liquid coins. Once research institutions and public organization whose dedication is to improve the whole blockchain sphere starts looking for funds, their sights shall be on them. This will definitely create demand and the price shall balloon. After all, Charlie Shrem, the former Bitcoin Foundation member, and Silk Road Architect think May 2018 is the last time Bitcoin would be trading below $10,000.
Further buoying Bitcoin price is news that Goldman Sachs shall open a Bitcoin futures trading desk where they shall trade at first with their own money.
From our previous Bitcoin price analysis, our buy trades are live. However, for those who didn’t initiate longs, they better wait until prices break the $10,000 psychological mark and resistance. After all, there is a stochastic sell signal in the 4HR chart complete with a double bar and bearish engulfing pattern meaning prices might move lower back to $9,500 or even to $8,500. The latter is our former support line and a region where we expect buyers to spring back to action and propel prices above $10,000 and towards $12,000.
According to Alexis Ohanian, the co-founder of Reddit and a full-time investor at Initialized Capital, Ethereum will hit $15,000 by the end of the year. Well, that’s ambitious and if it comes to pass then buying at current prices is a grand opportunity since there is a gross undervaluation of Ethereum. Anyhow, like Bitcoin, Ethereum is finding support from news of South Korea’s plan of legalizing ICOs of public organizations and research institutions geared towards improving blockchain technology.
As it is, Ethereum buys trades are live following that thrust above $700. That’s awesome news and as Ethereum continues to chart higher in line with the overall bullish trend visible in the weekly chart, buying on dips seems to be a good strategy.
Considering technical formations, we might see a slowdown in prices going forward now that Ethereum is up 14 percent in the last seven days. In that case, waiting for a stochastic buy signal preferably within the $100 gap between $600 and $700 support lines can be a good opportunity to buy at a discount. In the long run, buyers can aim to cash out at $900, $1,000 and $1,200.
Remember Codius? If not, this is the Ripple smart contract platform that was discontinued in 2015 when the cryptocurrency market was still in infancy. Back then, smart contract payments standards were still in development and so it is understandable that the project was phased out.
Now, as the market matures, Codius is back in beta and security experts have checked it for bugs. Reviving Codius will better place it for integration with xVia which many analysts think will boost prices in the coming days. After all, with increasing lobbying for global bank adoption, the demand for Ripple shall increase and so will prices. Besides, Ripple is looking to release a product for connecting corporate and banks by Q1 2018.
Ripple XRP’s Codius Is About To Be Re-Born And Could Be The Next Big Thing pic.twitter.com/wk7PEWuJik
— Bank XRP (@BankXRP) May 4, 2018
Back to the chart and Ripple is still moving within a tight range. Nothing much has changed in regard to price movement and $1 continues to be a strong resistance line. So, unless prices edge past $1, I shall recommend loading longs with every stochastic buy signal turning from oversold territories. From my analysis, those potential support lines lie at 70 cents and 75 cents clear in the 4HR chart.
BCH/USD (Bitcoin Cash)
If you are looking for drama, look no further. The Bitcoin Cash stage is full of it and you better grab some popcorn. We all know Bitcoin is the first cryptocurrency in the world and no one refutes. Only Roger Ver, a Bitcoin Cash supporter, and his team think Bitcoin no longer lives by its primary objective.
So what have they done? They now claim Satoshi Nakamoto’s whitepaper is Bitcoin Cash’s. Well, that was enough for CoinMarketCap, a website for ranking the real Bitcoin and altcoins valuation. They removed Bitcoin Cash’s www.Bitcoin.com link in a bid to eliminate confusion. In other news, UK investors can now buy Bitcoin Cash from LBX, a cryptocurrency exchange based in London.
Trade BTC, ETH, LTC, XRP, BCH & ETC on our platform & deposit/withdraw GBP using the only UK banking in crypto. You can also deposit/withdraw crypto whenever you like.
This is #RealCrypto
— LBX | The London Block Exchange (@LBXSocial) May 2, 2018
Price wise, buy pressure is still strong. Like other coins, I recommend buying on dips meaning considering our set up, loading whenever a stochastic buy signal prints can be a good strategy. Anyway, our first bull target at $1,700 has been hit following May 5 bullish breakout. Because of this, buying anywhere between $1,600 and $1,700 or whenever a stochastic buy signal prints from deep the oversold zone in the 4HR chart would increase chances of making money.
We are bullish yes but NEO prices is accumulating and dipping as visible in the daily chart. In the last seven days or so, NEO has only added four percent and technically looks to be slowing down.
What we can conclude is that bears are in charge, at least in the short term. Check out that stochastic sell signal in the daily chart. Besides, $90 remains a strong region of resistance. Consequently, NEO sellers might push prices below the middle BB and towards $65. From there, buyers can begin looking to buy opportunities in the 4HR chart and aim for $110 and $140 as per our previous NEO price analysis.
Dalmas is a Cryptocurrency News Writer and Analyst. He’s passionate about blockchain technology and the potential of cryptocurrencies.