Weekly Cryptocurrency Price Analysis: Bitcoin, Ethereum, Bitcoin Cash, Ripple and NEO
Over the weekend, the crypto market lost $20 billion in market valuation after Bitcoin prices moved below $6,000 for the first time in six months. Simply because of the BTC-Alt coin direct correlation, I suggest searching for pullbacks in lower time frames and trading with the trend with stops at recent highs.
Let’s have a look at these charts:
Bitcoin (BTC) Technical Analysis
Without a doubt, investors in virtual currencies are bleeding. It’s not hard to see why. To quantify, at current spot rates, BTC prices are down a whopping $14,200 from its all-time highs of $20,000. That’s a 21 percent decline month over month and there are various reasons that precipitate this. One has to do with Nick Szabo preview about the market where he mentions various regulatory steps and political opposition as a cause of Bitcoin future uncertainty.
Volatility in Bitcoin from temporary uncertainty about its future (vs. both political opposition & crypto competitors), not from its supply limit. As these uncertainties decline its volatility will decline until it reflects more the uncertainty in fiat than its own.
— Nick Szabo⚡️ (@NickSzabo4) June 21, 2018
Another reason is the increasing competition all thanks to the open source nature of the original Bitcoin source code. Solely because of these, we have seen various variations of coins that directly rival and are technically superior to Bitcoin. However, Szabo thinks that at the end of the day, those coins which will weather this storm will remain dominant and grow exponentially.
Back to price action and it’s a classic mark of bears at works. Note that, not only did price action negate our previous bull preview effectively canceling them following June 21 bearish engulfing candlestick but the sheer amount of trade volumes cements BTC sells. From previous trade plans, our main support and sell trigger lines were at $6,000 and at current prices, our sells are live. Because of this turn of events, I recommend selling with every high with ambitious targets at $3,000 with complementing mid-range targets of $5,000.
Ethereum (ETH) Technical Analysis
Encouraging news coming in from Ukraine and it is official that crypto miners including those mining ETH don’t need to apply for mining licenses. It’s definitely an awesome addition that could spur crypto interest in the market that is grappling with bears aiming for the jugular.
After all, in Ukraine alone, the crypto mining industry draws in $100 million in revenue according to official data and as such, officially registered and those not planning to continue their “non-economic” activities can continue working on transaction validation without a worry. However, the only caveat to this freedom is the flimsy stand of regulators and the overall laws that are meant to bring order on cryptos. So far, three draft bills proposals are in parliament but there has been no significant progress.
So far, ETH is really struggling to keep up with strong sell pressure. It’s down 27 percent in the last month alone and with last week ending as bearish, it means a further 13 percent were lost. Of course, trading against the trend will be counteractive and as such, selling on tops in lower time frames will be the way forward now that ETH sellers are trending below our main support line at $500 and $450. Considering the technical set up in the chart, targeting main support at $350 as we glide with the effect of BTC depreciation make sense.
Ripple (XRP) Technical Analysis
Dan Aranda the Managing Director of Ripple’s Xpring has some positive overview about crypto and Ripple modus operandi. While talking at the Clem Chambers, Dan talked about Ripple objective and goal of being that internet of value where everything including money and information runs straight from their protocol, the RTXP. He envisions a future where this IoV is part and parcel of everyday life and with Ripple exploring opening up communication channels allowing a seamless flow of information, Ripple will surely become like more of a connective tissue for financial services.
At current prices, XRP is trading at 6 months lows as this dip correction continues. It also means XRP is down more than 85 percent from its all-time highs and as such, the only logical thing to do as a trader is to aim for Dec 2017 lows at 15 cents. That’s roughly 30 cents away from current valuation now that XRP is trading within a break out after breaching 45 cents or April 2018 lows. Ideally, I suggest selling on retests at the main resistance line at 45 cents whenever it pans out lower time frames. Safe stops should be at 55 cents while ideal bear targets are at 15 cents.
Bitcoin Cash (BCH) Technical Analysis
It’s no doubt that Bittrex is one of the largest and influential cryptocurrency trading exchanges in the world. There are a little bit over 300 trading pairs available for traders and one of them includes Bitcoin Cash. In an announcement, the company did change the ticker symbol of Bitcoin Cash from BCC to BCH on June 20, 2018, and during that time, deposits and withdrawals of BCH were temporarily suspended.
— Bittrex (@BittrexExchange) June 21, 2018
The depreciation has been rapid and right after slicing through $850, breaking below our main support line and losing 20 percent, Bitcoin Cash sellers are in charge. As it stands, it could be worse for BCH all because of their direct coupling with BTC prices.
From the charts, we can see that the break out trade volumes we saw on June 20 was remarkably high and the follow through volumes were comparatively high printing above the last 10 days average. This means sell pressure is high and market participants are trading with the trend. Because of this, our first bear target is at $600 or April lows. Should there be a break below that then our ultimate bear targets would be at $300.
NEO Technical Analysis
Even if NEO got delisted at Kucoin, it’s likely that volumes will shift to Switcheo. Still, that won’t be a game changer or siphoning out liquidity from the twelfth largest cryptocurrency coin. Price wise, NEO sellers are following through June 12 break below $45 and odds are our first bear targets at $25 would be hit. Now, should bears step on the gas and break below this minor support at $25, then I suggest selling on pullbacks with targets at $12.
Dalmas is a Cryptocurrency News Writer and Analyst. He’s passionate about blockchain technology and the potential of cryptocurrencies.