Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, NEO: Price Analysis, July 09
Cryptocurrencies are bouncing off their lows even despite immense pressure from China and India. Which coins are confirming a bottom?
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The market data is provided by the HitBTC exchange.
The lack of mass adoption in daily use has led many critics to question the future outlook of cryptocurrencies. However, researchers at Imperial College London have said that within the next decade, digital currencies will be used as a payment method for goods and services.
In just a little over eight years, cryptocurrencies, led by Bitcoin, have gained a huge following and have become a new asset class for investing. All this has been achieved in spite of various hurdles by governments and central banks.
China’s central bank has boasted that it has reduced Bitcoin trading in Chinese currency, renminbi (RMB) from above 90 percent to just 1 percent of the world’s total. India has also banned banks from doing business with crypto exchanges. These two governments have made it infeasible to trade in virtual currencies for about 35 percent of the globe’s population. Despite that, the crypto markets are bouncing off their lows.
We believe that most of the top cryptocurrencies by market capitalization have either bottomed out or are very close to their bottoms. Though we don’t expect a blistering rally from these levels, we anticipate most to start a new uptrend within the next few months.
So, which ones are confirming a bottom?
Bitcoin is leading from the front. It has been sustaining above the 20-day EMA for the past seven days. For the past two days, it has been consolidating near the overhead resistance of $6,953.38.
A breakout above $7,000 increases the probability of a rally to $7,750, where the BTC/USD pair will face strong selling pressure from the downtrend line and the horizontal resistance.
Once this level is crossed convincingly, a rally to $10,000 should be on the cards.
If the bears reverse direction from the current levels, the virtual currency can form a probable right shoulder of a developing inverted head and shoulders (H&S) pattern as long as the dip remains above $6,250.
We recommend to hold the long positions initiated at $6,650. Our bullish view will be invalidated if the cryptocurrency breaks below $5,900.
Though Ethereum broke above the intraday highs of July 3, the bulls could not sustain the momentum. The digital currency turned down from $496.36 on July 8 without filling our buy recommendation at $500.
If the bulls defend the 20-day EMA, the ETH/USD pair is likely to break out of $500 and rally to $550 and thereafter to $600.
Therefore, we retain the buy recommendation provided in the previous analysis.
Conversely, if the bears break below the 20-day EMA, the virtual currency might remain range bound between $450 and $500 for a few days.
Ripple is not attracting buyers even at these levels. It has failed to break out of the downtrend line and reach the 20-day EMA in the past three days.
The only consolation is that it has not broken down of $0.45. Once the bulls sustain above the 20-day EMA, we anticipate a rally to $0.56, which should offer a stiff resistance.
The probability of a double bottom formation will increase once the XRP/USD pair sustains above $0.56. On the contrary, if the coin plummets below $0.4242, it will become very negative. We didn’t find any buy setups on the pair at the moment.
Bitcoin Cash is finding buying support in the zone of $700-$736. However, the buying dries up at higher levels, and due to that the bulls have failed to break out of the 20-day EMA.
A breakdown below $700 will sink the BCH/USD pair to $657. On the other hand, if the bulls succeed in sustaining above the intraday highs of July 3, an upwards move to $934 and above it to $1,200 is likely.
Therefore, the traders can buy if the bulls sustain above $850 for 4 hours. The initial stop can be placed at $650. It can be raised to break even if the digital currency struggles to break out of $934.
EOS continues to trade inside a very tight ran