Weekly Cryptocurrency Price Analysis: Bitcoin, Ethereum, Ripple, Bitcoin Cash and NEO
There is a general market slide. The fact is cryptos are down more than $20 billion in the last 24 hours alone. So, while many insist that these are definite long coverings considering the consistently low prices accompanying these long candlesticks, prices may recover at ETH, Ripple, and NEO should we see reactions at key support lines. Of course, Bitcoin prices play a role but any break below $7,000 might as well drag altcoin prices with it.
Let’s look at these charts:
Bitcoin (BTC) Technical Analysis
With every trading day passing, we are seeing kind words for Bitcoin and cryptocurrencies. Some of them came from Thomas Lee of Fundstrat who spoke to CNBC about the long-term trajectory of Bitcoin and altcoins. In his view, he thinks that with changing regulatory environment, banks and other financial institutions have a real chance of profiting, only if they jump in.
— nCrypt (@nCryptFinancial) March 31, 2018
In one of his comment, he said if banks venture now that regulations are slowly evolving to address previous concerns, they stand a chance of increasing their profits. He specifically talked of them becoming exchanges as SBI’s Japan recently did. If they do, chances are they would control a considerable market share and consequently rake a couple of billion dollars.
Thomas also dismissed talks of speculation in cryptos giving solid data which shows that there is a healthy ratio between Bitcoins within the chain and those at exchanges which stood at 4 to 1. This is better than the USD which is highly leveraged at 141:1.
After yesterday’s flash depreciation and rejection from our key buy trigger line at $7,800, it’s obvious that sellers are increasing their momentum. So, going by our previous projection, we just have to see what today brings as our previous sell triggers remain at $7,000. That’s at May 29 lows which by then would mean week ending June 3 higher highs would have been completely undone. After today and assuming we see a strong break below $7,000 then it means our next bear target with stops at $7,500 would be $6,500 and $6,000.
Ethereum (ETH) Technical Analysis
There are three concerns that Vitalik Buterin of Ethereum thinks should be addressed as soon as possible. They are things to do with scalability, network security and of course decentralization which founds blockchain technology. These three are what Buterin refers to as “Trilemma” and by addressing one concern, more often than not, there is contagion on the other factors.
Scalability is one of them and we have previously seen the effects of crypto kitties on the network. In a bid to find a solution, sharding and plasma are some major proposals under development. Like Bitcoin’s Lightning Network (LN), Ethereum’s approach is off-line solutions.
Apparently, last week was overly bears. For perspective, note that Ethereum is down seven percent during that period alone. Before this bear riot, our bull trigger stood at $650 and it will remain as it is going forward. However, in light of yesterday’s event which coincidentally saw ETH prices sliding seven percent, looking for sells would be prudent this week.
I recommend selling at every high where resistance is at $600. Immediate sell target is at May 29 lows at $500 despite my reiterations that these lower lows are but long covering. Check and compare the past seven days average volumes is 70k. This pales in comparison with the week ending June 3 whose daily average volumes stood at 150k.
Ripple (XRP) Technical Analysis
The recent Money 20/20conference was a honey pot of positive announcements. Yes, Brad Garlinghouse of Ripple said most global banks would be using the Ripple products as their main “liquidity” tool but that’s doesn’t supersede news of Ripple adoption. Santander OnePayFX app uses xCurrent for their payment processing, handling 50 percent of all international transactions and American Express plans to do the same. In a statement, their VP and General Manager of UK and Russia markets Colin O’Flaherty said the “instantaneous” nature of Ripple would go a long way in solving what their customers are currently facing.
How slight volumes manages to cause big price erosion of XRP prices despite all pro-Ripple news is mind boggling. Of course, we cannot argue with the fact that XRP prices are moving within a tight long-term 70 cent range. Because of yesterday’s eight percent dip which cumulatively brings a five percent slid week over week, we shall trade with the trend and sell. Considering the length of yesterday’s candlestick, our stops would be at 70 cents with targets at 50 cents.
That at May 29 double bottoms and bull spring anchors which also happens to be our main support line. Overly, I remain a bullish all courtesy of recent low daily average volumes which is low cementing my emphasis that the past seven candlesticks were long coverings.
Bitcoin Cash (BCH) Technical Analysis
Without a doubt, Roger Ver, an early investor in Bitcoin, and Bitcoin Cash Fund the community behind the push for Bitcoin Cash adoption are doing everything they can to make BCH use a success. Even though there are statistically backed comparisons that seem to support Dogecoin superiority over Bitcoin Cash, the latter’s market cap alone paints a different picture.
SBI VC will first start with 20,000 users. The general application starts in July 2018. While initially covering #XRP only, SBI Virtual Currencies will gradually expand its coverage to Bitcoin (BTC) and Bitcoin Cash (BCH).#xrpthestandard 2020#xrpcommunity #ripple $XRP #Ripple pic.twitter.com/NCqNs5ysio
— Dario Šuveljak (@stedas) June 4, 2018
Last week, SBI’s SBI Virtual Currencies said starting June 11, BCH will be available for trading at their exchanges. This is a big boost for BCH and that’s not including their revelation that they plan to launch an “all Bitcoin Cash” news website.
Overly, the crypto market is on a slide and as Bitcoin move lower, it’s taking with it Bitcoin Cash. Yesterday, BCH sunk eight percent moving away from our buy triggers at $1200. Ideally, we would urge complete sells once bears drive below May 29 or $850. But since we saw a rapid depreciation, we can begin small size selling-despite the low long covering volumes-with targets at $850 and stops at yesterday’s highs of $1100.
NEO Technical Analysis
Switcheo, a cryptocurrency exchange that rides on NEO blockchain now supports Ledger devices. Ledger are hardware wallets that are by design safer than exchanges’ and third parties third-party wallets. In this new arrangement, Switcheo clients would transfer tokens safely from their exchange wallets to Ledger’s Nano S upon device upgrade.
Ledger support has been launched and can now trade using your Ledger Nano S on Switcheo Exchange v1.5!
— Switcheo (@SwitcheoNetwork) June 12, 2018
Like every other tradable asset, market participation or volumes play a key role. Our NEO technical analysis shows that $40 and $50 are critical support line and while technical setups are shouting sell, I will keep off at the moment. It’s dependent on how prices would react at $40 and $50 and should we see pockets of buy pressure at these levels, then prepare to buy once prices are above $50.
Dalmas is a Cryptocurrency News Writer and Analyst. He’s passionate about blockchain technology and the potential of cryptocurrencies.