Weekly Cryptocurrency Price Analysis: Bitcoin, Litecoin, Ethereum, IOTA, and EOS
There are many angles to view the market despite this relentless sell pressure. First, news of regulations is obviously positive and could open the door for institutional investors to channels their trillions. Secondly, there is widespread cryptocurrency adoption and that mean coins as Bitcoin, Ethereum, and even Litecoin stand to benefit in the long term.
Let’s have a look at the charts:
Bitcoin (BTC) Technical Analysis
It’s no doubt that hackers are having a field day and according to research by Cipher Trace, already more than $1.5 billion worth of cryptocurrencies are down the drain, irrecoverable in 2018 alone. It’s even made worse by the immutability properties that blockchain in general possesses.
CipherTrace launches #cryptocurrency Anti-Money Laundering #compliance #solution as cryptocurrency #AML #regulation grows globally via https://t.co/y8w8H4NOGL #launch #cryptocurrencymarket #cryptocurency #cryptocurrencynews #NTVToday #IFIKIEMASTUDE #StalledProjectsKE #infosec
— Virtual CISO (@0ciso) July 11, 2018
Cipher Trace is a forensic company that provides services and custom tools for blockchain and cryptocurrencies. On the lighter front, there is hope for cryptocurrencies including Bitcoin. Bitcoin, as it is, remains the most valuable cryptocurrency in the world simply because the community has trust in it and is the most secure chain. As such, BTC is turning out to be the reserve currency in the crypto world with many regarding it as digital Gold ready for global adoption.
Back to price action and BTC sellers are in charge. Following July 10 bearish engulfing pattern and rejection of higher highs above $7,000, traders can find liquidating opportunities in lower time frames. At the moment, there are two approaches: Sellers can sell at current prices with stops at $6,700-July 10 highs or wait for a break below $6,000-main support line. Either way, ultimate targets would be at $3,000.
Ethereum (ETH) Technical Analysis
Sergey Brin, the co-Founder of Google is the latest tech influencer to air their views of cryptocurrencies and Ethereum in general. During the Blockchain Summit held in Morocco, Sergey said he often mine Ethereum with is the teenage son and he has reasons to believe that cryptocurrencies are here to stay. His comments are positive for Ethereum but we are yet to see movements on the chart.
Opera browser adds an Ethereum crypto wallet to its Android version (in beta). Hope other browsers follow suit: https://t.co/S8XPbpmvhk
— Ethan Wilding (@ethanwilding) July 11, 2018
While at it, you can now interact directly with the Ethereum blockchain, store ETH, access dApps and even make payments via Opera browser. All users have to do is to download and install the app from their Google Play Store.
Like BTC, ETH is down two percent in the last 24 hours as price action completes the Evening Star reversal pattern after rejecting prices above $500. Because the general trend is bearish, my recommendation for sellers is to short at current prices with stops at $480 now that sellers are snapping back to trend. Targets should be at $350, a support line clear in the daily chart. On the flip side, any appreciation above $500 canceling this sells projection.
EOS Technical Analysis
Besides the RAM debate and how to better address the problem limiting dApp developments, there is good news out there. First, EOS have solid plans to resolve RAM issues through side chains with stand by block producers spearheading the development and coming up with a proper mainnet-side chain linkage architecture. Secondly, according to statistics, there is now more active in EOS than Ethereum while not compromising on their through put—it’s peaking at 1,000 TPS.
— Chintan. (@chintanmajithia) July 10, 2018
Back to price and sellers are pressing their sell pedal. It is down eight percent in the last day with sellers confirming July 10 bearish engulfing candlestick. Simply because of this resumption of a trend, my suggestion for traders is to wait for a clear breach of $7 or April lows and trade the resulting bear break out the pattern. So, in line with our trade plan, sellers would then liquidate EOS on every pull back with targets at $4 and stops at July 10 highs at $8.
Litecoin (LTC) Technical Analysis
News of the Litecoin Foundation acquiring TokenPay’s stake at Munich based WEG Bank AG is causing waves. This is not correct. First, TokenPay transferred their 9.9 percent stake to Litecoin in exchange for marketing and technology leverage but Litecoin Foundation has to wait until BaFin approves TokenPay plans of buying 80 percent of WEG Bank AG shares in coming days. Secondly, while WEG Bank AG operates with a license, it is not a bank per se but a financial institution that specializes in issuing real estate loans in the country.
🔥Here are the benefits of owning a bank.🔥 @LTCFoundation & @TokenPay have entered into a strategic partnership to buy a stake in a German bank, WEG Bank AG. We plan to work on many exciting consumer-driven crypto solutions.#Litecoinfam #Litecoin #Crypto #bitcoin #blockchain pic.twitter.com/vKrt9N4VKy
— John🔥@SatoshiLite⚡️Bodyguard[LTCSF18] (@johnkim77) July 11, 2018
In my own view, there are two ways to trade this coin. First, you can liquidate at current price levels with stops at $80 or you can wait for a bearish break out below $70-and like EOS sell on corrections retesting $70. The second approach is safer now that our stops were hit at $80 effectively nullifying our previous buy stand. Any case, our bearish targets would be at $50 and any push above $90 triggers buys and cancels these sells.
IOTA (IOT) Technical Analysis
By itself, IOTA is a revolutionary development and with the great responsibility of charting new territories comes great power. In basic terms, it means you would be answerable to the community with some even testing the robustness of the system like what happened on July 6.
Currently the confirmed transaction ratio in iota is practically 0 because someone is stitching the side tangle to the main tangle and this apparently breaks regular nodes ability to select tips.
Let's just enjoy this moment. pic.twitter.com/PEvmkdT3JY
— Sarah Jamie Lewis (@SarahJamieLewis) July 7, 2018
Then attackers exploited the network causing a standstill in the process through what was called a stitching attack. This caused IOTA’s reference nodes to be over-loaded meaning there was no selection of tips and thus zero transaction confirmations.
So, in light with this dragging effect, IOTA is yet to recover. It is still perched at position nine in the liquidity list but struggling to keep sellers at bay. At the moment, prices are testing this year’s lows at 90 cents. As such, because of yesterday’s bearish engulfing pattern driving prices back to 90 cents, my trade plan is simple: Sell with every pullback in lower time frames with targets at 65 cents. Stops for this trade should be at $1.05 while any bullish up-thrust above July 2 highs at $1.3 mean buyers are back in charge.
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.