Weekly Cryptocurrency Price Analysis: Bitcoin, Ethereum, IOTA, Litecoin and EOS
In the past week we have been bullish considering the fundamental events in Bitcoin, EOS and Ethereum. At the same time, technical developments at IOTA after the release of Qubic framework is all but bullish. However, despite all these, bears continue to scale eroding last week’s positive gains. While we look to buy on dips at or around key support levels in Litecoin, EOS and IOTA, patience is but a treasure because we don’t have to speculate where the bottoms are. Waiting for confirmations would be a superior strategy.
Bitcoin (BTC) Technical Analysis
Even though CME and CBoE Bitcoin Futures listing were met with excitement in the cryptocurrency market, the aftermath has been nothing short of disappointing. Now, to revive that “unfinished” business, SolidX and VanEck now have a partnership and have a filing with the Securities and Exchange Commission (SEC) to create their own Exchange Traded Product (ETP) backed with 100 percent insured Bitcoin. If the SEC requirements are met then institutional investors would have a chance to invest in SolidX and VanEck’s VanEck SolidX Bitcoin Trust whose share price starts at $200,000.
VanEck SolidX Bitcoin Trust
-SolidX & Van Eck filed an app w/ SEC for a new bitcoin ETF
-Price based on US OTC trading desks, not exchanges
-High share price of $200k to discourage retail investors
-May be more likely to be approved b/c of abovehttps://t.co/gRPTJBO3gI
— Matt Odell (@matt_odell) June 6, 2018
As it has been said before, the success of cryptocurrencies and Bitcoin depends on institutional involvement. Hopefully, with more widespread regulation and maturing crypto-exchanges and firms, we shall see more big money capital injection in this sector effectively buoying prices.
Like before, our trading strategy is pretty much the same because prices are moving within a tight $400 trade range. The upper limit is at June 4 high-that by the way defines high-low of the past three candlesticks. So, we are net bullish and for affirmations, we need to see up-thrusts above May 23 highs at $7,800 as buyers complement May 29 bullish candlestick. Before then, we remain neutral buying only when our trade conditions have been met. If not and we see Bitcoin price depreciation below $7,000 then we shall cancel our bullish view.
Ethereum (ETH) Technical Analysis
In an ideal world, there is an equal distribution of wealth. Of course, if that would have been the case, then everyone would have a Porsche in his/her own backyard. However, as things are, early adopters of blockchain technologies are reaping heavy benefits judging from the new realization that just 0.03 percent of ETH coin holders control the majority of coins in supply.
Yes, there is no coin burn in Ethereum but still, that’s a huge gap, a disparity that can be a breeding ground for price manipulation. If we scale a little bit higher, we realize that 11.4 percent of all ETH holdings are under the control of the top 10 ETH addresses.
Back to price and we are still oscillating within a consolidation with edges at $650 and support at $550. Ideally, our wish as traders is to see prices continue with last week’s appreciation and hopefully align with April gains. However, for that to happen, ETH prices must break above our minor resistance at June 3 highs at around $630 or for better moves, thrust past $650. Otherwise, this consolidation is not helpful at all since we cannot make worthy trades to justify our stops even if we would like to buy at cheaper prices.
Litecoin (LTC) Technical Analysis
Despite the slide and the more than 65 percent slide in prices in the first half of the year, many analysts point to an undervaluation in this network. Yes indeed, we cannot refute the fact that their social media campaign has been nothing short of success drawing several payment providers and merchants. When we zoom into our charts, we cannot see this sentiment or fundamental follow through sailing with price action. Litecoin prices are in fact down losing two percent in the last 24 hours but gaining four percent week over week despite their failure to thrust above $130.
We can see what I mean in the daily chart. Because of last week’s events, we remain bullish holding on to our technicals that recent bearish candlesticks are long coverings due to those consistently low market participation levels. Besides, there is minor resistance at $115 from which June 5 bull candlestick found support. So, if we are correct then we must see appreciation with high volumes past June 4 highs. Else, any strong dip below $115 and $110 would be beckoning for Litecoin sellers to press below $100 towards $90 and $80.
EOS Technical Analysis
The longer the mainnet delay, expect more rumors to churn. Some are saying Block Producers (BP) are still in discussion while insisting the delay is because of the bugs that continue to be unearthed. You should recall the Chinese Internet Company 360 claims that a “serious vulnerabilities” were found that could ultimately ruin the whole network.
EOS Mainnet Launch Update – 1300 UTC call: the security audit is not finished but no show-stopping bugs have been found. Next joint call at 0100 UTC may yield a “GO” decision. If a “GO” decision is made a joint statement will be drafted and released with instructions. #eoslaunch pic.twitter.com/oHCEQBP8YP
— EOS New York (@eosnewyork) June 7, 2018
While that was fixed in record time, the fact that the next day a bounty program was announced raises more questions than answers. Yes, we are even seeing support from Tether and in the past 48 hours, EOSUSDT trading volumes were second place after Bitcoin in reputable exchanges as Binance. If EOS is a solid project as they claim then investors and observers alike are anxious about seeing an official mainnet launch.
As this is happening, the mainnet launch bar high low defines short-term support and resistance. It’s easy. From the daily chart, it’s clear that the past three or four candlesticks are trending within this bar while we maintain our bullish forecast. So, it even gets simpler. For this assertion to be true and our buy triggers pulled then we need to see movement.
As such, this means buyers injecting momentum which would push everything above $15. This should be accompanied by high volumes representative of effort. If not, then I recommend staying neutral because after all, any declines below $12 effectively neutralize this projection.
IOTA (IOT) Technical Analysis
Undeniably, what Qubic promises to lay in front of users will initiative some sort of paradigm shifts. It has some wild benefits. Even though it’s still on paper, prospects of a robust network that is infinitely scalable with smart contract feature enabling free tokenization is but ideal. That’s what we should have in this IOTA layer and it shall come in the near future becoming an IOTA milestone.
The Qubic platform will be the most significant contribution to the IOTA stack, it will enable unlimited new use cases and turn the IOTA Project into a full solution. Information and details are beginning to be unveiled right now at https://t.co/U87nKaZWnI#IOTA #Qubic
— IOTA (@iotatoken) June 3, 2018
While the vibes are overwhelmingly bullish, we are yet to see bits of this sentiment translating to positive moves in our price chart. IOTA bulls have been struggling in the last three days. From the charts, bears are up reversing more than 40 percent of last week’s gains. We are net bullish and that means we must see some form of support today if indeed our projections were right. Our first support is at $1.6. I recommend zooming on to the lower time frame like the 4HR chart and search for long entries with every strong bullish engulfing pattern reacting at this price tag-$1.5 or $1.6.
Dalmas is a Cryptocurrency News Writer and Analyst. He’s passionate about blockchain technology and the potential of cryptocurrencies.