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Technical Analysis

Weekly Cryptocurrency Price Analysis: Bitcoin, Ethereum, EOS, IOTA and Litecoin

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At the backdrop of Expedia “silently” booting Bitcoin as a payment method, Facebook reversing their stand on crypto ads and Volkswagen (VW), the German car maker serious about transitioning to autonomous systems leveraging on IOTA’s Tangle, the market is yet to shake off sellers. The slide continues and should Bitcoin strongly break below $6,000, altcoins might follow suit.

Let’s have a look at these charts:


Bitcoin (BTC) Technical Analysis

It’s a blow after blow for Bitcoin supporters. Yes, undoubtedly, Bitcoin is the poster boy of cryptocurrencies and should it collapse, most cryptos would follow suit echoing Nick Szabo preview. Considering recent events, it seems like the bear squeeze is not yet over. News reaching us shows that after four solid years of accepting Bitcoin (BTC) as payment, Expedia, one of the world’s largest travel site has called it quits.

While they didn’t divulge the reasons behind their decision, many argue that it might be because of January’s events. Then Expedia customers couldn’t make bookings because of Bitcoin network scalability woes. Worse still, network fees were through the roof. Anyhow, there are solid suggestions that Expedia could have changed platforms and adopt Litecoin or Bitcoin Cash for example. They are cheaper to transact with and have faster settlement times.

Technically, first, keeping emotions in check, we must admit that BTC technical formations prints a grim picture. Sellers are unrelenting. So, because of this simple fact, our initial trade plan still holds true. What this means is that taking trades at current price level-$6,000- is risky. Instead, the best approach is to wait for: Bitcoin (BTC) sellers to drive prices below $6,000 and even breach June 24 lows at $5,400 or, BTC to find support and reverse losses pushing above $7,000 in the process. Before anything happens, we remain neutral as before.


Ethereum (ETH) Technical Analysis

Just five months after making a rush decision, Facebook is back legitimizing cryptocurrency ads. Of course, when it took that decision, Ethereum prices were trading at around their highs and Facebook thought they were pricking the crypto bubble.

They might have if we take a look at numbers quantifying the past six months slide. Admittedly, most ICO scams did reach many people through social media platforms of which Facebook remains the most populous. In a blog post, their Product Manager, Rob Leathern, said interested companies would have to be vetted first before they can advertise. Overly, this is positive not only for ETH which is mainstream but for cryptocurrencies in general.

Price wise and ETH depreciation continue. It’s down four percent in the last 24 hours. While it’s below $500, the main sell trigger line now resistance, sellers are in charge. All things constant, and considering the risk-reward ratio, my recommendation is to remain neutral for the time being. Though Ethereum sellers adhering to our previous trade plans are deep in the money, those entering now should consider the average daily range (ADR) of ETH. Rather than take risks, take a wait and see approach as they observe what happens at $350. This level is a a key support line. All things constant, it could help determine ETH’s medium to long-term prices.


Litecoin (LTC) Technical Analysis

Litecoin and Bitcoin are two coins with different objectives. However, the fact that they have a positive price correlation and to some extent technology is undesirable. Now, thanks to Litecoin’s adoption of Segwit, Segwit 2x and later Lightning Network, scalability concerns, and fees are but negligible concerns.

With Lightning Network recent improvement and design to handle micro-transactions and strengthening privacy through Tor, there are better days for Litecoin. What’s desirous now is the number of Litecoin LN nodes and channels to pick up.

Our trade position is clear and has been like so for the last two months. We shall continue recommending selling on every pullback in lower time frames as long as LTC prices are trading below the immediate resistance line at $90. In that line, therefore, our trade targets at $70 and later $50 remains constant unless of course, we see appreciation above $90 or $110 canceling this bear view.


EOS Technical Analysis

Less than two weeks after launching, EOSIO finds themselves in a hard position. Obviously, for those who have been following this soap opera, it all stems from the governance structure Block One chose. Block One is the company behind the EOSIO blockchain. With the new policy, they introduced Block Producers who on the advice of EOS Community Arbitration Forum (ECAF) can at any time block user accounts.

Block producers are nothing but ever-evolving super nodes thanks to their (Delegated Proof of Stake) dPoS consensus. Admittedly, Ethereum-mainnet migration had some challenges and because of it, the ECAF saw fit to suspend 34 accounts, freezing their coins until there is a resolution. This human intervention and power centralization counter the very core of blockchain and the blockchain is spewing venom.

Like most coins under our review, EOS is rapidly losing value. To quantify, since mainnet launch, EOS is down 50 percent from June 2018 highs and performs dismally compared to its all-time highs (ATHs). This, therefore, means we should trade with the trend and thanks to the setups in the daily chart, we shall continue with selling on pullbacks as long as EOS is trading below $9. In line with previous trade plan, bears should aim at $4 or March 2018 lows but first, we should see movements below $7, a level of intermittent support.


IOTA (IOT) Technical Analysis

Two years back, the crypto world was starved off news. Then the community was craving for such news and fast forward to 2018, we are seeing high profile news of partnership and adoption yet investors are having their doubts. A perfect example is IOTA. A crypto seeking to unite the world of the Internet of Things and their partnership with Volkswagen (VW), a German Car maker who are literally grabbing straws after their Emission Scandals. While VW is seriously considering using IOTA as they try to make technological breakthroughs in Autonomous Vehicle, we need to see those positive vibes seep through to price action.

This is so because as it stands, even though IOTA is up two percent in the last 24 hours, the strong bearish shadow they need to lose in the weekly chart is a tall order for buyers. In any case, just like the market, the sentiment is bearish and that is why, regardless of this support at 90 cents, I recommend selling. However, the best approach is to take wait until there is a break down below 90 cents that’s when selling on every high is encouraged. Otherwise, for buyers to take charge, waiting for appreciation above June 22 highs and $1.3 is my recommendation.

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.

About The Author

Dalmas is a Cryptocurrency News Writer and Analyst. He's passionate about blockchain technology and the potential of cryptocurrencies.

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