Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, TRON: Price Analysis, July 20
With most major coins having risen significantly over the past days, we might not be out of the woods yet.
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The market data is provided by the HitBTC exchange.
Have cryptocurrencies bottomed out? This is the first question to pop up in any crypto investor’s mind following the recent pullback from the lows.
Arthur Hayes, a Bitcoin bull and co-founder of one of the largest crypto exchanges Bitmex is not convinced that a bottom has formed yet. He believes the current leg of the pullback can reach anywhere between $8,000 and about $10,000 before plunging again. He opines that the bottom will be formed around the level of $5,000.
Boris Schlossberg of BK Asset Management, a known Bitcoin bear, said that the current pullback could go above $8,000.
As has been the case for the past few weeks, it is hard to resist writing about the institutional investors. Digital asset management fund Grayscale Investments has said that 56 percent of all new investments into their products in the first half of 2018 have been made by institutional players.
In fact, the total investment inflow in June was one of the strongest fundraising periods since 2013, Grayscale claimed in its first-ever crypto investment report.
So, with all this institutional money flowing in, has the crypto market bottomed out or is this a dead cat bounce? Let’s find out.
Bitcoin completed an inverse head and shoulders pattern on July 17 with a break above the neckline at $6,953.38. The pattern target of this breakout is $7,996.11.
However, the BTC/USD pair has a strong resistance at $7,750, which acted as a major hurdle in early June. The downtrend line of the descending triangle is also close to this level at $7,600.
Therefore, we suggest traders take partial profits close to $7,500 and raise the stops on the remaining position initiated at $6,650 to break even. We are recommending booking partial profits because Bitcoin will pick up momentum once the bulls break out and close above $7,750 as that will invalidate a bearish pattern. Failure of a bearish pattern is a bullish sign with the next targets at $8,500, $10,000 and $12,000.
We believe that the bottom is in place at $6,000 - we foresee the possibility of a retest of the $7,000 mark in the next few days, but it should hold. The bullish crossover of the moving averages adds to our confidence but unlike 2017, it will be a slow climb to the higher levels this year.
All these forecasts are done based on the current chart structure. If and when the charts change, we shall review our levels and revise them accordingly.