Weekly Cryptocurrency Price Analysis: Bitcoin, Ethereum, NEO, Bitcoin Cash and Ripple
It’s a depreciation all around the crypto world. Bitcoin, the anchor cryptocurrency, for example, is down 14 percent in the last seven days but stable in the last 24 hours. Going forward and considering the influence of Bitcoin to alt coins, any slowdown in Bitcoin sell pressure would reduce the intensity of bears in others as NEO and Ethereum. Talking of NEO, this coin is a long-term buy-hold because of the Chinese government influence and how crypto is taking root in South East Asian countries.
Bitcoin (BTC) Price Analysis
Like any business, solving real-life problems draws instant support. Bitcoin solves cross-border payment and many see value in it. It’s adoption and use case that is imperative and this is what unites us. From what we have seen, and considering the huge amounts of cash involved, institutional investors are not really willing to put their money on Bitcoin because of the common wild price swings. What many forget is that retail investment is not enough to shore Bitcoin.
The larger the market cap, the better the liquidity and the more stable price action becomes. It’s under this rationale that we see the need of capital injection from these big boys. That’s why when John McAfee, who founded the software company McAfee, said hedge funds and institutional investors are ready to plow into cryptocurrency; there was palpable excitement. McAfee is a known enthusiast and Bitcoin investor who projects Bitcoin prices to exceed $250,000 this year. As you can see, his advice suits those who are willing to hold Bitcoin and top 10 cryptocurrencies over the long term.
On the charts, Bitcoin prices are obviously in a downtrend and we can see those lower lows in the last few months. However, that’s not important. What draws my attention is May 24 candlestick. It’s bearish and with it, there was remarkable volumes shift in line with the weekly trend. Now, trading this pair is simple. For buyers to be in charge, we need higher highs pushing back prices above $8,000 with extraordinary volumes. Otherwise, we may see a normal pullback anywhere between $8,000 and $9,000 with low volumes and that’s when you can sell on these short coverings.
Ethereum (ETH) Price Analysis
With new regulations, some services have to bulge. Parity’s PICOPS services were the first to shut down. For those who don’t know, PICOPS (Parity ICO Passport Service) is a subsidiary of Parity Technologies and were instrumental for Ethereum blockchain crowdfunding through Initial Coin Offerings. It’s all because of EU’s General Data Protection Regulation (GDPR) and chances are you have received an email from different service providers alerting you of their obligations. Now, Parity Technologies are complying and discontinuing PICOPS meaning many ICOs will find hard to know whether investors are adhering to Know Your Customer (KYC) and Anti-Money Laundering (AML) rules.
There is a correlation between Ethereum and Bitcoin prices and as long as Bitcoin prices are selling, expect the same to happen in ETH except unless something extraordinary happens. As it is, bears are in charge and trending according to May 22 and 23 bear candlesticks. Consequent candlesticks are short coverings and like our Bitcoin strategy, selling on highs at around $650 and $730 as long as volumes are light is a better strategy. On the flip side, any spike in market participation rejecting push towards $500 might fuel a recovery in this bear market.
Ripple (XRP) Price Analysis
User cases, anyone? Applicability is what you get with Ripple. Encouragingly, the company is on the forefront supporting investors and updating the community. Inevitably and as expected, since inception different companies have declared their support on cryptocurrencies since the dawn of blockchain. However, there is none like PropyInc which allows you to purchase prime property using Ripple token (XRP), Bitcoin and Ethereum. PropyInc is a real estate company in California and is now one of the many real estate online platforms accepting purchase using cryptos.
Great news! We added XRP as a cryptocurrency accepted at Propy, starting with a rare investment opportunity to acquire one of the last large pieces of city land in Silicon Valley! $, BTC, ETH and now #XRP are accepted. The offer is exclusive on #propy: https://t.co/ZuM4gBEdk2
— Propy (@PropyInc) May 25, 2018
On May 23, we had a price action climax complete with high volumes often marking the end of a bear or bull move. However, we should not be too quick to judge unless we see confirmation. Note that after May 24 double bar reversal pattern, prices are still moving within a tight 8 cents range. That’s still inside May 24 high low. If anything, I’m an XRP bulls and for this assertion to be true we need up-thrusts above 60 cents. Otherwise, any selling pressure below May 24 lows at around 56 cents and XRP sellers can quickly test 45 cents.
Bitcoin Cash (BCH) Price Analysis
After Cheap Air and White Company, a company owned by Elizabeth White, we now have Revolut yielding to customer demands. Revolut is a UK-based company that “exposes” their customers to cryptocurrencies including Bitcoin, Bitcoin Cash, Ripple and other highly liquid coins without necessarily going through an exchange.
— Revolut (@RevolutApp) May 24, 2018
Even though it may appear minuscule, this is but a huge boost for Bitcoin Cash and its prices due to liquidity exposure from that extra demand. At Revolut, and through their popular service Revolut Crypto, customers can now buy Bitcoin Cash using fiat currencies, hold or even sell them via a simple user mobile user interface.
It’s a mirror effect and through a supply-demand dynamics, the depreciation is slowing down after two bear candlesticks. As it is, prices are moving within a tight $200 price range with upper limits at $1,150. In my view and assuming Bitcoin Cash find support, we need to see prices breaching and closing above $1,200.
That’s if at all we are going to buy BCH. For assurance purposes, this bullish move must tag with it volume spikes exceeding the last 10 days average. That stands at around 40K. Otherwise, any attempt to break below $950 successfully and Bitcoin Cash sellers might experience further sell pressure with targets at $800 and $600.
NEO Price Analysis
The news is China is calling for the fast technical development of blockchain technologies. NEO being a Chinese protégé has some sort of fast mover advantage aside from being one of the most mature blockchains in China. Now, whether China would choose NEO over Ethereum, which by the way was ranked one of the most mature blockchains in the world, we don’t know. In my view, China being the most populous country in the world and NEO being their local blockchain has an edge over other platforms. Remember, if a third of Chinese opt for NEO then that alone would be enough to push it in the top three in the long term.
Prices are on a downtrend and that’s what going on with other cryptocurrencies. If this trend continues then we might see NEO testing $40 and hopefully, that’s where prices might find support. I recommend staying neutral for the time being and observe what happens to prices at our support line.
Dalmas is a Cryptocurrency News Writer and Analyst. He’s passionate about blockchain technology and the potential of cryptocurrencies.