Weekly Cryptocurrency Price Analysis: Bitcoin, Ethereum, EOS, IOTA and Litecoin
There is an across the board coin depreciation in Ethereum, Bitcoin, and Litecoin. Coincidentally, these are pioneers of cryptocurrencies and as long as Bitcoin is down, the same is likely to be replayed in Ethereum and Litecoin. On the other hand, though, EOS and IOTA are recovering. Basing my skew on technical developments visible on the chart, we might see higher highs and reversal of losses in coming days. All this is due to positive sentiment surrounding EOS mainnet launch and incoming news on IOTA.
Let’s look at these charts:
Yes, it’s true that prices might explode in the coming days but what’s happening in the advertisement world is not encouraging for price action. Microsoft is following the likes of Google and Facebook by banning cryptocurrencies and Initial Coin Offerings (ICO) related ads beginning July 2018. In an interview, Microsoft said all cryptocurrency ads floated on their search engine, Bing are “elevated risks for their users”. This cannot be far from the truth considering the large number of ICO scams hell-bent to defraud unsuspecting investors.
Price wise, the trend is bearish and in the last seven days, for example, Bitcoin prices are down 10 percent. There is news that Mt Gox trustees are dumping the coin and hence the slide but what we surely do know is that Bitcoin has been on a slide for the better part of the year. In the daily chart, it’s clear that prices are oscillating within a $6,000 range defined by March 5 highs at $12,000 and Feb 6 lows at around $6,000. Those are our upper and lower limits.
At the moment we have a mid-range reversal with May 11 bear candlestick accompanied by high volumes drawing our attention. As we can see, moments, after that candlestick was printed there, was a pull-back towards $9,000 though with low volumes meaning this was a short covering. In my view, aggressive traders can sell now and aim for $7,800. However, unless otherwise, our ultimate support and bear target lies at $6,000.
There are some pretty nice movements in the Ethereum world right now. Goldman Sachs and Circle now have their coin, a safer alternative to the controversial Tether, pegged to the USD. The cool thing about it is that Circle shall be launching them on the Ethereum blockchain and hopefully, traders shall finally find a refuge from the stormy market. By design and according to Circle, the coin, Circle USDC, is meant to bring stability and a solution to a safe store of value which is “badly needed”.
On the same page, Consensus Summit is turning out to be the right platform for announcing major developments. One of them is the partnership that Amazon and Ethereum plans. In a bid to deploy ready-made blockchain solutions to businesses, Amazon will soon be working with Ethereum’s Consensys to make Amazon Web Services better and faster.
Like Bitcoin, Ethereum prices are down but the depreciation is slower, losing seven percent in the last week. While bears are obviously in charge as the general trend shows, buyers are rejecting lower lows. This is good, but May 11 bear candlestick still holds some significance since price action is trending within its high low with low volumes.
As such, current oscillations are likely to be short coverings and mirror’s Bitcoin moves. Conservatives can stay out of this trade while aggressive trades can wait for a break out in either direction.
All thanks to Börse Stuttgart, traders would be in a position to trade the top four liquid coins through its subsidiary, Bison app. Even though Bison launch shall launch in September this year, their goal is clear: make cryptocurrency trading accessible to everyone. Then again, Börse Stuttgart is one of Europe’s largest stock exchange cementing confidence on users whose previous pain points have been solved through easy registration and fast verification process. Besides, Bison promises free trading meaning there is more for traders. Despite their lack of clarification on how they shall generate income, the fact that investors will register and trade freely without hassle is a good thing for Litecoin and other cryptos yearning for deeper liquidity.
Litecoin is trading within a $70 range defined by $180 highs and $110 main support low. Now, what we have in between is just but some consolidation in a general bearish trend. In my view, prices are likely to add to their losses especially if there is a break below $130 with abnormally high volumes. Because of this position, I’m neutral on this pair until after we see that synchrony with a trend. In that case, ideal stops would be at $140 or May highs at $150 with targets at $110 and $100.
While EOS is one of the biggest losers in the past week after sliding 24 percent, I really think the slide is all but over. Yes, there are some fundamental reasons advising this-read mainnet launch in the coming weeks, but there is more to that. EOSIO continues to onboard important finance influencers. One of them is Rob Jesudason, the former Chief Financial Officer of the Commonwealth Bank. Block One said he shall be leading EOSIO operations.
On the charts, bulls are picking up momentum and it’s a straight buy from all accounts. Note that we now have a springboard with high volumes rejecting lower lows and a confirming bull candlestick. This is a classic three bar reversal pattern where EOS buyers should look for under-valuation in lower time frames and ramp up longs. Ideal stops should be at $11.50 and targets at $22 or thereabout.
As long as IOTA prices are trending below $2.1 or February 17 highs, we are net bullish. However, in the same vein, odds are prices might recover and blast through May 11 resistance. In our analysis, that candlestick is important in our analysis and even if we are seeing higher highs, those might well be short coverings. We shall see what happens in the coming days because if there is a sell candlestick at or around $2.1, it’s better to sell and ride the trend.