Weekly Cryptocurrency Price Analysis: Bitcoin (BTC), Ethereum, EOS, Litecoin, and IOTA
Encouragingly, trade volumes are back signaling an easing, risk off environment where traders are willing to execute at market rates. It might be because Bitcoin (BTC) is trading above $8,000 for the first time in two months easing investors who had to contend with a tough first half of 2018. IOTA, for example, is up five percent in the last day rejecting lower lows while Ethereum (ETH), Litecoin (LTC) and EOS are struggling to break and close above key resistance lines. Still, alt-coin buyers stand a chance.
Let’s have a look at these charts:
Bitcoin (BTC) Technical Analysis
For the first time, BitMex, a Seychelles based crypto trading platform for Bitcoin derivatives, printed an all-time highs processing one million XBT contracts worth over $8 billion at current market rates. By all accounts, this is super bullish for BTC but the only caveat is that BitMex is not classified as real Bitcoin exchanges by most coin trackers as Coinlib since they don’t trade with “physical” Bitcoin.
A new record, near 900,000 XBT traded on $XBTUSD alone, > $7BN notional. Over $1BN in just one hour. Total exchange volume is inching close to 1,000,000 XBT. Thanks to our users and congrats to our engineers for delivering the capacity to make this possible! pic.twitter.com/79esvnxXbO
— BitMEX (@BitMEXdotcom) July 24, 2018
On the flip side though, a real exchange like Binance handles a ballpark $1.5 billion of BTC transactions on a single day and cumulatively, the Bitcoin daily transactional volume just shy of $10 billion pales in comparison to Dec 2017 peaks. As BitMex is registering record trade volumes, Bitmain-in an attempt to be more transparent with their mining activities-revealed that they only control 3.5 percent of the total SHA 256 hash rate and not 51 percent as “peddled” around.
We've just published our Transparency Policy for Shipping and Mining Practices. It includes our disclosure of 'self-mining' hashrate for all blockchains that we mine, commitment to greater transparency and zero-tolerance policy on 'secret mining'. Read on: https://t.co/2ajHpYeCJ4
— BITMAIN [Not giving away ETH] (@BITMAINtech) July 25, 2018
Back to price action and our BTC longs are active. Furthermore, at current prices, Bitcoin is trading above $8,000 for the very first time since early June. This is overly good and in our case, we can continue ramping up longs despite bulls stalling. After all, considering the rapid gains of July 23 and 24, yesterday’s containment is but normal and technically, they are entry points for those buying on dips. However, ideal BTC buys entry will be anywhere between $7,700 and $8,400 with stops at $7,200.
Ethereum (ETC) Technical Analysis
At the backdrop of hurting hacks, the South Korean government officials are now urging the country’s governing body, South Korea’s Financial Service Commission (FSC) to better enforce cryptocurrency regulations.
In recent times, South Korea which is known to generate huge cryptocurrency trade volumes has had to contend with massive security loopholes which have seen several exchanges hit by hackers. CoinRail and BitHumb are examples but while there are laws protecting investors, the government is taking no chance and wants these exchange to fortify themselves better. The best way to ensure compliance is to enforce proper laws which the parliament is currently drafting.
While the market is upbeat and registering decent gains week over week, ETH continues to trudge. The trend is obviously up but still, prices are trending within a $150 trade range with ETH buy triggers at $550. While we retain a neutral to bearish stand, it is likely that ETH bulls will drive prices and probably close above $550 this week considering the proximity between the current spot rates and $550. That’s the projection we have and it syncs with last week’s Ethereum price analysis.
Either way, there is an opening for aggressive buyers to sync with the trend, load small ETH positions at current spot rates with stops at July 24 lows at $440.
Litecoin (LTC) Technical Analysis
At the core, Litecoin is designed to act as a medium of exchange. It’s for that reason why Litecoin has fast block generation and transaction settlements. Now, it’s behind such rationale that a “one” tap mobile payment app, Flexa is now available. Flexa allows users to pay for almost anything at more than 35,000 merchants worldwide.
And the cool thing about it is that you can make payment using Litecoin or even a combination of several coins without managing your private keys. Besides, you don’t have to pass through a bank or a card provider.
Technically, we are still trading within a bearish break out the pattern and $110. As mentioned in our previous Litecoin trading analysis,$110 is our first bull target and an important level and resistance line. Overly though, the LTC market is moving inside a $20 trade range. Concurrently, traders are expecting Litecoin bulls to follow through and blast past $90.
This is all thanks to July 24 high volume, bullish engulfing candlestick. As reiterated in our previous Litecoin trade plans, $90, is an important minor resistance line and buy trigger and so for this plan to self-execute, we need prices to trend above it. If not, then we shall revert back to the previous stance and wait for LTC sellers to dip below $70 triggering shorts.
EOS Technical Analysis
Free transactions, scalable system and Visa-rivaling throughputs continues to give EOS an edge over other cryptocurrencies. It is solely because of these properties that the CCID, a Chinese cryptocurrency ranking department, find strong reasons to believe that EOS applicability, usability, and technology is unrivaled. That’s why it continues to lead the pack for the third month in a row.
Of course, this is an endorsement for EOS. Nevertheless, with a delicate balance of creating a win-win ecosystem between EOS investors and dApp developers, the positivity hasn’t been translated to price. Regardless, we expect to see support following new RAM implementation by Block Producers.
— EOS Authority (@EOSauthority) July 26, 2018
So far, EOS is trending within an accumulation/distribution with strong resistance lines at $9, our buy trigger. At the moment, we have EOS testing these levels. However, there is no momentum to ensure a close above it ushering in EOS buyers.
Because of this, my EOS trade suggestion is to retain a neutral view and wait for breakouts in either direction. In case we see high volume close above $9, the first targets would be at $15. On the flips side, strong dives below $7 mean bears should aim for $4.
IOTA (IOT) Technical Analysis
It’s all about transport, autonomy, and efficiency for IOTA. Shortly after welcoming Anes Hodžić into the IOTA Foundation Advisory Board, IOTA did announce their partnership with Audi. Audi is part of Volkswagen Group and together with IOTA, they are planning towards the creation of this “permissionless mobility ecosystem”. Tangle will act as a facilitator.
— IOTA Tangle Network (@IotaTangleFacts) July 24, 2018
With such high power announcement, IOTA is reacting. Thus far, it is one of the top performers in the top 10. IOTA is up five percent but is yet to reach $1.3 or close above July highs. What’s clear though is that prices are reacting positively from 90 cents. As they do, they are rejecting prospects of lower lows and syncing with our overall IOTA trade plan.
Following such gains, I suggest risk-off traders buy at current prices with stops at 90 cents. Long execution will happen when IOTA bulls edge past July highs at $1.2-$1.3. In that case, ideal targets would be at $2.5.
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.