Weekly Cryptocurrency Price Analysis: Bitcoin, Ethereum, Litecoin, IOTA, and EOS
In the face of bears, buyers are struggling to judge from Bitcoin, Ethereum and Litecoin prices behavior in the last couple of days. They have been stagnant, to say the least with Litecoin especially stuck in some sort of consolidation below our buy triggers at $90. Others as EOS are clogging with RAM complains while IOTA is a tad bit stable and inching higher towards $2.5.
Let’s have a look at these charts:
Bitcoin (BTC) Technical Analysis
In a bid to prevent money laundering and terrorist financing, the Israeli Tax Authority (ITA) now has a deal in place with the country’s biggest crypto exchange, Bits of Gold to report transactions worth more than $50,000. Without a doubt, crypto exchanges are vital for crypto but deals like this often go against the privacy and “no government intervention” goals blockchain in general strives for. This deal is the first in the country and a milestone for sure because there is no law in Israel that forces exchanges to reveal transactions done through them. This idea seems novel but unfortunately, it might set precedence for regulators in other jurisdictions to follow suit.
Our main support line stands at $6,000 and from the previous analysis, we said that Bitcoin buyers would be in charge once they push prices above $6,800 or $7,000 on the upper end. That’s around June 22 highs and it would be an important development for Bitcoin hodlers because that would mean there is enough momentum reversing previous losses.
Before that happens, my suggestion is to remain neutral though with a bullish skew until that happens. In the meantime though, aggressive traders can begin loading at current spot prices with stops at $6,100. Overall targets are at $8,000 and later $10,000.
Ethereum (ETH) Technical Analysis
Despite talks of Ethereum working around the corner to solve scalability issues and other network congestion problems, FCoin showed the world exactly why such talks are but a hot vapor. They basically set the ground rolling for some sort of Sybil attack flooding the entire ecosystem with hundreds of thousands of small transactions. FCoin is a Chinese cryptocurrency exchange that has solids plans of over-taking Binance as the largest in the world and well, that’s ambitious. To list coins/tokens, they did ask candidates to airdrop their tokens to the exchanges user accounts who would instead vote for them. By doing so, we had an exponential effect leading to gas price spiking above Dec 2018 all-time highs and basically locking out other applications from running on the platform.
— Ethereum 24/7 (@Ethereum247) July 5, 2018
Like Bitcoin, Ethereum is recovering and is up two percent in the last 24 hours. While we are bullish, our trades are yet to go live because buyers are yet to push above $500, a buy trigger line according to our previous analysis. As such, being neutral until that happens is the best trading idea to do because should there be a rejection of prices and sellers trade according to June 22 bearish engulfing candlestick, our bear targets would be at $350 as stated before.
EOS/USD Technical Analysis
Before its mainnet launch, EOS was marketed as a platform where developers could launch their dApps taking advantage of an operating system that could scale besides processing transactions fast. Now, what’s has been happening is an ante to this and it’s quickly turning out that indeed, the real resource is the platform RAM.
— EOS Go (@go_eos) May 17, 2018
All this was thanks to Dawn 4.0 update where Dan literally allowed RAM holders to buy and get financial incentives whenever they release their holdings to the market. What he did was too alone RAM prices to be determined by the free markets, the supply-demand dynamics and since launch, that’s been the case. At one point, prices shot up to 0.9 EOS per kb translating to around $3 at current price rates. RAM and kb are needed for account creation at EOS and this no doubt is disastrous and prohibitive for everyday dApp creators.
Dan calls for more RAM… pic.twitter.com/YHNHGQmKTy
— EOS Community Forum (@eosforumorg) July 4, 2018
Back to price action and buyers seems to be in charge. It’s up around one percent after bouncing off from $7, an intermittent support line in our analysis. While price action is generally bearish, what we want to see is strong gains above $9 or even $15 accompanied by strong volumes to validate our bullish stand. In that case, I suggest buying on dips in lower time frames with targets at $15 and later $21 once prices are trending strongly above $9.
Litecoin (LTC) Technical Analysis
Being one of the pioneers of crypto, Litecoin has a tight trading range courtesy of its deep liquidity. This might be the reason why it may appear to be lagging other coins as IOTA and even EOS. Regardless, Litecoin is still a solid coin charting forward as it strives to complement Bitcoin as a medium of exchange. We can easily judge that by the number of outlets and merchants accepting it through their Pay with Litecoin website.
On to the chart and we are technically trading within a bearish break out following that depreciation below $110 on June 9. Now, the community is hopeful and expecting to see further gains but what’s laid out in the chart means we shall be trading pull back in line with break out patterns. In this case, Litecoin bulls are likely to push prices to previous support now resistance at $110. So, because of this, I suggest buying once prices thrust above $90 our immediate resistance line in the daily chart. Reasonable stops would be at $80 or July 2 lows.
IOTA (IOT) Technical Analysis
Going by the number of partnerships and all, it’s clear that IOTA plans to monopolize the world of IoT. After all, IOTA stands out, is blockless and Tangle promises to be that scalable system that is free to transact with. It’s this unique proposition that got the attention of Peru’s National University. Computer Science students at the institution would get to learn about IOTA and the General distributed ledger technology. On the development front, there are new updates for Project Qubic.
— IOTA VIETNAM (@DangQuangThoa1) July 5, 2018
Back to price and IOTA is on the rise. Notice that like most coins, the trend is technically bearish. However, the support found at 90 cents-where we have a double bottom-is clear for traders. Thus far, prices are stable and this would be expected because as it stands, IOT buyers have reversed June 22 bears forming this double bar reversal pattern though with a lot of effort. In my view, prices might dip a little bit back to $1.05 and that’s why I recommend buying at current prices and placing stops at $1 with targets at $2.5 or May 2018 highs.
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.