Weekly Cryptocurrency Price Analysis: Bitcoin, Ethereum, Litecoin, EOS and IOTA
Undoubtedly, sellers are in charge and it’s solely because of this that the cryptocurrency market cap is down $25 billion in the last four days or so. But, this is coming at the expense of other coins because Bitcoin controls around 40 percent of the market up from 30 percent when prices were oscillating at April prices for example.
Let’s have a look at the charts:
Bitcoin (BTC) Technical Analysis
Were BitFinex and a host of other exchanges working together with Tether Limited pumping Bitcoin prices during the great bull-run of late 2017? Well, there is tangible evidence according to a research paper from the University of Texas-Austin co-authored by Professor John M. Griffin and Amin Shams, a Finance PhD student.
In their inflaming report which was thoroughly researched for one year from March 2017 to end of Q1 2018, they said there was a relation between the Bitcoin price pump following periods of retracement and the time frame from when Tethers were minted. In their simulations, they found a clear pattern showing how BitFinex and other exchanges supported prices through a perfectly orchestrated pump.
On to the charts now and BTC is finding support at around $6,000. That’s a psychological round number and likely to be a launching pad for buyers keen on reversing previous losses. Considering how we are seeing these rejections of lower low-clear especially in the 4HR chart, I recommend buying at current prices with stops at $6,000.
That’s June 13 lows and the reason for this is the injection of high volumes and particularly that bullish reversal pin bar in the 4HR right at $6,000.
Ethereum (ETH) Technical Analysis
The cool thing about CoinBase is its ability to innovate and come up with products that are appealing to their customers. One of them is the CoinBase Fund Management Index which they said was in the pipeline sometimes back. Now, the product is live and they are expecting institutional investors or at least high net worth individuals earning in the excess of $200,000 per year.
In this new arrangement, investment will range anywhere between $250,000 and $20 million per year and all the coins which are supported will have a weighted exposure depending on their market capitalization. In this case, BTC and ETH will have the highest exposure.
Coinbase index fund has launched, 2% fee for management, 4 Assets and rebalancing once a year.
— Sushanlo Ramil (@SushanloRamil) June 14, 2018
Back to price action and it’s the same approach panning out as BTC. While bears are I charge, odds are prices might recover today but that is subject to appreciation above $500. There were hints of that early today but overly, risk-averse traders are better placed to short, aim at $350 and trade with the trend with stops at $500.
On the flip side, any strong pump in lower time-frame as the 4HR chart breaking above $500 would temporarily invalidate our sell projections.
Litecoin (LTC) Technical Analysis
What’s more, ItBit, one of the first crypto exchange to get the regulatory approval like Gemini, is opening its door and position itself strategically as crypto adoption pick up pace globally. Previously, investors and their customers could store, trade or exchange BTC at this platform but now after ticking all the requirements set by the New York State Department of Financial Services (NYDFS), they can now offer similar services to Litecoin, Bitcoin Cash, Stellar Lumens and Ethereum.
This will hopefully expand their user base and provide extra services and perhaps draw more demand for these coins that are to benefit from free exposure and a capital injection from the new set of investors who prefer regulation.
Looks like ItBit will be trading Litecoin soon! https://t.co/b1uP41C4g0
— Charlie Lee [LTC⚡] (@SatoshiLite) June 14, 2018
Despite pockets of higher highs in a lower time frame, coin supporters need a lot of convincing if at all prices have really turned the corner. First and foremost, notice that sellers are trading below psychological $100 mark and that by itself should be clear pointers that bear pressure have been consistent.
While we had pockets of bull pressure in a lower time frame and that’s why LTC is finding a little bit of support, I will only recommend buys once we see LTC back above $110 accompanied by high buy volumes. If not, selling on every high with first targets at $70 would be perfect.
EOS Technical Analysis
It’s no secret that there are a few trust issues when it comes to EOS voting. As has been set by the EOS blockchain protocol, the network must vote for block producers and that would be literally impossible if we EOS coin holders won’t stake at least 15 percent of the coin supply.
Of course, a leading cause of this impediment has to do with poor marketing on how to vote and at the moment BitFinex and a couple of other interested firms are spearheading this charge and assisting with their tool Greymass. This has helped push the total coins staked to more than 7.5 percent as reported by EOSAuthority.
#EOS Block Producers Voting nearing 15%. If you have EOS, now's the time to help activate the chain. We tested the easiest and safest EOS voting tool out there (takes less than 1min to vote) from #Greymass:
— BitcoinGuru (@BitcoinGuruInfo) June 14, 2018
The thing is, I don’t expect prices to recovery unless of course after Block Producer voting has commenced. Before then all these generated blocks would not be validated and EOS traded within exchanges would be worthless. Inevitably, this would have a negative effect on price. However, with changing sentiment as the threshold level nears, EOS is recovering.
On June 13 we had a bullish pin bar complete with above average volumes meaning there is a rejection of bears at $10, a key support line. In my view, I recommend short-term buys with first targets at $15 and cautious stops at $10. If stops are hit then we change tack and trade with the trend with targets at $7 and stops at $10.
IOTA Technical Analysis
All things constant, IOTA remains a long-term buy. We have Qubic with several tech corporations already on the rails researching ways of implementing Tangle. Fujitsu and Volkswagen are already experimenting and on normal occasions, IOTA would be on the ladder tracks aiming for $3.
Regardless of our hypothesis and current bear run, these prices are perfect for accumulating in readiness of long-term buy hold. But for now, since sellers are not as strong judging from the last 24 price action, we might as well change our short-term view and root for buyers.
As it is, buyers are likely loading their longs in lower time frames. Because of this, aggressive buyers should buy at current prices with stops at $1.1. Any dip below June 13 lows at $1.11 will cancel this risky buys.
Dalmas is a Cryptocurrency News Writer and Analyst. He’s passionate about blockchain technology and the potential of cryptocurrencies.