Weekly Cryptocurrency Price Analysis: Bitcoin, Ethereum, Litecoin, EOS and IOTA
News of BitHumb hack continues to dominate the crypto market. While the consequent hasn’t been that adverse, there are differing opinions on the matter. Charlie Lee of Litecoin on an interview thinks that there shouldn’t be a correlation between any exchange hack and BTC price.
*All deposit and withdrawal service will be stopped to make sure the security. We will keep notice you of the restart of the service. We apologize for your inconvenience and thanks for your understanding.
— Bithumb (@BithumbOfficial) June 20, 2018
Regardless, Bitcoin prices are still moving within June 18 candlestick and yet to trigger our buys or sells. At the same time, we are watching EOS Block Producer voting which is ongoing and how the market reacts to claims of centralization.
Let’s have a look at these charts:
Bitcoin (BTC) Technical Analysis
The debate about the best possible ways of improving the network is never short of drama. There are proponents who think increasing block size would infinitely scale the system while others including Blockstream came up with innovative off-chain solutions as Lightning Network. On their own, they tout this technology as a perfect solution that keeps the network light, keep fees low and guaranteed speed.
It’s in this light that Coinsight, a US-based start up that specializes in imaging using AI thinks Bitcoin’s Lightning Network (LN) is the best pairing and a confluence for value exchange. With LN, Coinsight will have access to information like never before while allow AI systems to execute micro transactions while learning from immutable input from real-time and trustless network data. According to Coinsight, this sort of autonomous interaction between different AI systems will contribute towards the ever-changing information economy.
In the daily chart, there are two candlesticks that are important in our analysis. The first is that bullish candlestick on June 14 and the second is the follow through on June 18. Despite printing in a largely bearish trend, they are rays of hope for buyers. That’s assuming we see an increment of volumes and break above the minor resistance line at $7,000. Before that happens we remain neutral as in our previous trade plan. On the flip side, if sellers are indeed in charge then the reaction at $6,000 is paramount for our analysis.
Ethereum (ETH) Technical Analysis
Do you think Bittrex is the next CoinBase? Yes, this Bittrex had issues with the community and regulators before but in the recent past, they have been consistently announcing important news. By availing ETH/USD pair, it means investors can directly verify and link their US or Canadian fiat accounts and from there embark on buying spree.
Today we’re adding Ethereum (ETH) to USD (Fiat) markets in addition to previously announced Bitcoin (BTC), Tether (USDT) and TrueUSD (TUSD) markets. See recent blog for more information: https://t.co/n0RfkvUPYa #Bittrex pic.twitter.com/fXeFMy316V
— Bittrex (@BittrexExchange) June 20, 2018
That is not only positive news for the coin which is available for trading but is also critical adoption. The more exposure, the more adoption, and liquidity it brings and in the long term, the price of the digital asset stabilizes.
On to the chart now and the progress in the last two days has been dismissive. Overly, considering our previous trade plan, we are net bullish on ETH prices. After all, from popular coin trackers, it’s up five percent in the last 24 hours meaning there is impetus despite the slight effect of yesterday’s BitHumb hack. Our buy and sell triggers are still unaffected at $550 and $450 respectively. Once we see movements above those levels then we can begin initiating trades in the direction of the breakout. As it stands though, we remain neutral.
Litecoin (LTC) Technical Analysis
While in an interview with CNBC, Charlie Lee, the Founder of Litecoin who many know as Satoshi Lite, said it’s usually panic and unnecessary fear that causes digital coin prices to drop whenever there is an exchange hack. Referring to recent hacks where close to $90 million worth of cryptos is reportedly missing, Charlie said this isn’t supposed to the case.
— CNBC's Fast Money (@CNBCFastMoney) June 20, 2018
In his opinion, he said prices should be relatively stable even in the face of these hacks because it has nothing to do with the blockchain but trust which investors give to exchanges. All in all, he remains upbeat and with Segwit activation and consequent LN implementation in Bitcoin and Litecoin, he thinks the future is bright for Litecoin and cryptos in general.
We can attribute this mostly to the almost stagnant LTC prices. Just for perspective, note that LTC is down two percent in the last 24 hours. Then again, it’s still trading inside June 14 high low and as before it’s our anchor bar as it defines short-term resistance and support. So, as long as prices move inside this $20 trade range with sell triggers below $90 and buy at $110, we remain neutral.
EOS Technical Analysis
Even though EOS is less than a week old, it is already controversial. From talks of account freezing to debate on decentralization claims, talking points are numerous. Before we dig deeper, you should be aware that the governance system of EOS through Block Producers can freeze EOS accounts. Already, seven different accounts which EOS says were emailing phishing no longer exist.
Encouragingly, EOS coins were recovered after arbitration efforts. It’s also the first of its kind in the blockchain era. This means you can actually lodge a case if your private keys are stolen. If there is a consensus that indeed your assertions are true then you would have your coins back.
#EOS abuse: Other people’s tokens are now being abused like #WallStreet abused other people’s money in 2008. #Bitfinex is voting clients’ EOS tokens for THEMSELVES as #1 block producer. Help! #Crypto #cryptocurrency #bitcoin #btc #altcoin
— Weiss Ratings (@WeissRatings) June 20, 2018
Besides this “censorship possibility”, Weiss Ratings now claim that BitFinex is without a doubt using user funds to vote themselves in as Block producers.
All things constant, EOS is moving within a tight horizontal consolidation. We cannot highlight more or even offer trading advice unless we see movements above $13 and $9 just like in our previous trade plans. As such, the only logical thing to do is to wait until we have solid signals and that can only happen when we see a break above in either direction. Before then, stay put and see what price action has in store.
IOTA (IOT) Technical Analysis
Talks of Qubic dominates this sphere and for good reason. After it goes live in a few years time hopefully, there shall be smart contractability of IOTA platform and that is positive for this IoT specific coin. However, that is just one project.
#IOTA – The Projects: Coordicide, Autopeering, Economic Incentives, Consensus Spec, Crypto Spec, Attack Analysis, Exchange Hub, IRI, Coo-free IRI, Local Snapshots & Permanodes, C Client, iota.js, Tanglescope, MAM+, Controlled Agent, Trinary hash function, Protocol finalization pic.twitter.com/hbwIlRWIee
— IOTA News (@iotatokennews) June 18, 2018
Data shows that IOTA Foundation is working on 19 other projects at different stages of development. MAM+, a communication protocol over Tangle, for example, is under peer review while Exchange Hub is already in beta in some exchanges.
If indeed IOTA is a long-term buy then we need to see that positive expectation spill over to price action. So far, IOT is down two percent in a day over day basis and worse still, 4.35 percent down on a week over week. This is in contrast to other coins which are registering double-digit gains over the same period. Borrowing hints from the previous analysis, we remain net bullish but chances are prices might dip to $1 and even 90 cents before finding support. But, should there be a rebound then wait for prices to surge above $1.3 before buying on dips in lower time frames.
Dalmas is a Cryptocurrency News Writer and Analyst. He’s passionate about blockchain technology and the potential of cryptocurrencies.