Weekly Cryptocurrency Price Analysis: Bitcoin, Ethereum, NEO, Ripple and Bitcoin Cash
How Bitcoin prices fluctuate is like a shadow that can either pump or dump altcoins prices. As the month comes to a close, we are seeing a short-term recovery of Bitcoin prices and the effect on most altcoins aside from NEO is clear. I remain bearish unless we see NEO edge past $40 canceling a break out pattern and Bitcoin trading above the psychological $7,000.
Let’s have a look at these charts:
Bitcoin (BTC) Technical Analysis
Many analysts argue that Bitcoin prices would soar this year and test new highs. BitMex CEO Arthur Hayes and Tom Lee, the Co-founder of Fundstrat are some of these staunch believers. While Arthur is positive of Bitcoin prices hitting $50,000 this year, Lee is a little bit conservative, projecting BTC to hit 2018 highs of 25,000. Whether this will come to pass or not, we don’t know but we can at the same time take relief of what historical prices has in store for us.
One argument that analyst believe could fast-track BTC price recovery is the sheer amount of investment by retail and institutional investors. This alone, they believe, would shorten the time of prices springing from the dredges. For example, between 2013 and 2015 prices moved from lows of $200 to highs of $1,200. Those were three years of bulls pushing prices to highs before bears clipped these gains. However, due to heightened interest as aforementioned, the recovery cycle is likely to be short.
Echoing these forecasts are weekend’s events that brought back bulls as they reversed losses. Week over week, Bitcoin is up three percent at the time of going to press complete with a nice double bar bull reversal candlestick which was confirmed on June 29.
In the run-up to this was that spike of volumes on June 29 lifting with its prices. Because of this, our sell stop losses were hit negating our sell projections. As such, aggressive can start buying but conservatives should only buy once prices edge past $6,800 as momentum shift from sell to buy pressure.
Ethereum (ETH) Technical Analysis
The Winklevoss twins are seasoned investors and people behind the regulated Gemini crypto exchange think Ethereum is digital oil with Ether (ETH) oiling the system. Of course, considering how everything is set up with Ethereum especially being a reputable smart contract and DApp platform, opinions are varied.
Even as sticks out as digital oil as the Winklevoss Twins describe them, Multicoin co-founder Kyle Samani says that Ethereum has been evolving. He compares the recent tumultuous events following EOS launch to that of Ethereum back in 2015 and he thinks EOS mainnet launch is indeed better.
Investors and critics need to relax and realize that in Ethereum’s formative years, there was nothing like infrastructure and tools. Using it to execute contracts was challenging but has time has shown, it gets worse before it gets better.
On the charts, Ethereum prices are up two percent and more like BTC, June 29 did spur bull participation. Yes, it is a nice thing that we are seeing such strong rejection of sell pressure as the market prepares to bottom. Informing this is the marked increase in bull volumes, almost doubling that of June 28 and the follow through on June 30. Note this: our sell projection would only be nullified once we see Ethereum buyers breaking above $500, our immediate resistance line. Before then, we remain neutral with a bullish skew.
Ripple (XRP) Technical Analysis
Unlike most coins, many investors and Ripple coin traders are living in denial. Brad Garlinghouse, the CEO of Ripple has been rebuffing claims that XRP is a security for sometimes, even citing their agreement with FinCEN. It’s true that they have an agreement but it’s the SEC who dictates what they consider to be a security and those that aren’t. Bitcoin and Ethereum (ETH) are utilities and Samani is convinced that XRP is a security. He insists that despite the market cap, once this drop shell hits the mains, exchanges might stop trading and XRP will “plummet”.
Contrary to this, XRP is relatively stable and trading above 45 cents. Besides, there is a nice three bar reversal pattern with a confirmation on June 30 that might form the ground for more gains this week. However, while the overall vibe is positive, my bullish recommendation would be in force once we see prices trading above 50 cents on the lower side and 55 cents for conservatives in need of clear trend shifts.
Bitcoin Cash (BCH) Technical Analysis
It’s no secret that the “Bitcoin” brand is a sought-after addition for any altcoin and Bitcoin Cash is reaping big from that. Fundamentally, proponents believe they are doing the right thing and advocating Satoshi’s objective—who some believe is writing a book.
Transacting on the Bitcoin Cash network is 11X cheaper and hence suitable for micro-transaction which by the way is in line with the overall BCH objective of replacing BTC as a medium of exchange. But while it does this, its hash rate is declining and is technically not as secure as BTC.
Put simply, BCH prices are moving within a $200 trade range with lows at around $600 and highs at $800 following June 22 bear candlestick. As it is, this won’t trigger us to take longs because like everything else, confirmation is needed.
This, therefore, means my recommendation for buys shall be live after prices edge past $850 and when buyers have completely reversed June 22 sell pressure. It’s is a conservative approach but those wishing to buy can do so but with tight stops at $600 with overall targets at $850, $1300 and later $1,900 if buyers are indeed in charge.
NEO Technical Analysis
As before, we are still trading according to that climactic sells and bear break down on June 12. As always, price recovery is a welcomed addition but rather than being overly optimistic, playing by a tight trade plan is most profitable.
Because of that injection of buy momentum in BTC, we might see a recovery in NEO more so after that double bar bull reversal with high bull volumes. I suggest buying with stops at $20 and targets at $40, the immediate resistance line and break down the level.
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.