Weekly Cryptocurrency Price Analysis: Bitcoin, Ethereum, Ripple, Bitcoin Cash and NEO
Even though we are net bullish as highlighted in our previous forecast, the resistance to further gains as visible in ETH, Bitcoin, NEO and even Ripple would probably clip our forecast. Notice that not only are prices trending within tight trading ranges but the fact that most of these coins are testing June 13-14 support levels with individual long upper wicks under normal volumes are warning flags. However, in the meantime we are neutral and should there buy triggers or break below main support lines, then we shall trade as per price action dictates.
Let’s have a look at these charts:
Bitcoin (BTC) Technical Analysis
While giving his opinion at the Yahoo Finance Summit, the CEO of Trustory Preethi Kasireddy said Bitcoin prices are yet to hit bottoms. Citing strong information asymmetry within the network, she said investors are getting smart and are no longer involving themselves in a product simply because of hype. As statistics have been demonstrating on various occasions, any dump in BTC prices would come at the expense of other altcoins. It also means BTC dominance would continue to bulge in the process.
Se non l’aveste capito, io non ho più accesso ai fondi depositati su bitgrail.
Sono stati sequestrati a seguito delle azioni legali promosse da Espen Enger.
È inutile che continuiate a contattarmi, ormai io non posso fare più niente.
Dovrete aspettare il tribunale.
— Francesco The Bomber (@bomberfrancy) June 16, 2018
As this is happening, BitGrail, Italy’s crypto exchange, crypto assets have been seized through a court order from the Court of Florence as a petition of its bankruptcy stemming from early this year’s hack continue. The heads of BitGrail and Nano coin continue to throw accusations against each other claiming their respective platform was the source of the weakness. This is coming at the expense of investors who lost $185 million worth of Nano during the heist effectively paralyzing the operations of the exchange.
Price wise, Bitcoin (BTC) prices are moving within a very tight range inside June 14 high low. If anything and as before, we are banking on that strong bullish engulfing candlestick to spring load buyers. Perhaps this would propel them towards $7,000 and $7,800 in the coming days as price action validates our bullish forecast. Before then, we should stay put and wait because any drop below June 13 lows at $6,000 means sellers are still in charge.
Ethereum (ETH) Technical Analysis
In the eyes of the SEC, decentralization is the main determinant that effectively classifies a coin or a token as a security or not. Now, as it stands, Bitcoin and Ethereum are two coins which are perfectly distributed. What this means is that no one has a true control of the network as to influence its market valuation through material information and things like those.
— Bitcoin (@btc) June 14, 2018
News of this coming from US main regulatory body was welcomed with reprieve as ETH prices spiked as a result. Consequently, what’s in everyone’s lips is whether in the days to come we shall see CBoE or CME ETH Futures that shall channel institutional funds into ETH. Doing so will be the easiest way to jolt ETH prices to $1,500 or at least to Q1 2018 prices.
On to the daily chart and it is pure price stagnation. In the last 24 hours, ETH prices are up three percent and $6 above the main support line at $500. As it is, and borrowing details from our previous price forecast, all we need is a push above $550 which is also June 14 highs for our buy projections to be valid. It is a conditional approach. Before our buy triggers are hit, we remain neutral as we wait for bull confirmations above $550. Stops should be below June 14 lows at around $450 and buy targets are constant at $850 as before.
Ripple (XRP) Technical Analysis
Following SEC comments and not forgetting what happened last week when CoinBase decided to list ETC rather than XRP, XRP supporters are dying for a sign. The first two coins are not securities solely because of their decentralization.
FinCEN already signed an agreement with Ripple Inc. allowing them to continue their XRP sales. If XRP is an unlicensed security then FinCEN now has to explain why they signed an agreement allowing the sale of said unlicensed securities. Never going to happen. XRP isn't a security
— Richard Holland (@codetsunami) June 17, 2018
Okay, while we can continue talking about Ripple centralization, it’s good to remember that they have an agreement with FinCEN that classifies XRP as a cryptocurrency and as such it isn’t a security per say. Besides, they already have a decentralization strategy that is already in place with the first decentralization phase set for implementation as early as July 2017.
From the chart, our main support stands at 40 cents and yes, price action has been slow, to say the least, and not moving according to our previous projection. Regardless, we are upbeat with XRP and expect support first at 50 cents which are also June 14 lows. Any breach below that will cancel our buy projection because for it to hold true we need prices to edge past 60 cents and later 70 cents.
Bitcoin Cash (BCH) Technical Analysis
It’s all boils down to philosophy when it comes to which is superior, Bitcoin or Bitcoin Cash. A while back, there was a Bitcoin Cash forking leading to an increase of block size to 32 MB and the addition of several operational codes which places Bitcoin Cash as a reliable payment platform. We have seen comments from their lead developers and how they are hyping the project in general and optimizing their block size as they seek to scale their throughput and rival VISA’s transaction processing rate. Of course, we can see that BCH objective is simple. All they want is to claw back BTC dominance and take the mantle as the leading blockchain medium of exchange ahead of Litecoin and even Dogecoin.
Main support stands at $850 and in the last four days or so, BCH prices have been moving within a $50 range whose upsides stands at $900. Our strategy is simple, wait for prices to appreciate past $950 and buy or sell when prices break below $800. In both cases, our buy targets would be at $1,200 and $1,800 for buyers and $350 for sellers with reasonable stops at $800 and $950 respectively.
NEO Technical Analysis
Apart from the NEO Private Decentralized exchange that depends on NEO Contract to function, there is really no major news to spur back NEO to profitability. So, even though we are net bullish on this coin and the prospects of NEO in general, it is highly likely that prices might continue to sink in the coming days.
Not only have we been seeing lower lows in the past three days but it is likely that the bearish breakdown pattern following the bear break below $45 would weigh down bulls. In this case, I recommend shorting this coin with targets at $25.
Dalmas is a Cryptocurrency News Writer and Analyst. He’s passionate about blockchain technology and the potential of cryptocurrencies.