Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, TRON: Price Analysis, July 25
The potential approval of a Bitcoin ETF by the SEC would be a boost to the crypto markets, but not to the extent of last year’s rally.
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The market data is provided by the HitBTC exchange.
Institutional investors and the approval of a crypto exchange traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) are the two possible triggers that could boost the recovery in cryptocurrencies.
The SEC has decided to postpone making a decision on the Direxion Bitcoin ETF application until September. However, many crypto enthusiasts hope that the application filed by money manager VanEck and SolidX might see the light of day within the next few weeks.
While these applications are pending, San Francisco-based asset manager Bitwise has jumped into the fray with a proposal of an ETF that would track a basket of 10 cryptocurrencies. While the others are applying for Bitcoin-only ETFs, the Bitwise HOLD 10 Cryptocurrency Index would track multiple cryptocurrencies, collectively covering about 80 percent of the total market capitalization.
So, with these positive expectations, can we see a repeat of the past year’s rally? Unlikely.
We believe that it will be a slow grind upwards with various pit stops in between. Therefore, traders should not get greedy and should book partial profits at regular intervals. Let’s see the important levels to watch out for.
Considering the sharp rally from the lows, we anticipate the BTC/USD pair to face a stiff resistance around the $8,500 mark.
If the bulls provide support at the trendline or at $7,750, we are likely to witness another attempt to break out of $8,566.4. If the virtual currency fails to scale above $8,500 once more, traders can book partial profits close to $8,400.
Conversely, if the bulls break above $8,500, the digital currency can rally to $10,000. Therefore, traders can hold their remaining long positions initiated at $6,650 and trail their stops higher to $7200. This will make the trade risk-free and lock-in some of the paper profits.
The momentum will weaken if the bears sink the prices below $7,750.
The pullback on Ethereum hit a roadblock at the 50-day SMA. Currently, the prices have corrected back to the 20-day EMA, which should offer some support. Below this, the trendline is the next support.
If the ETH/USD pair breaks below the trendline, it can slide to $440 and below that to the lower support at $404.99. A break of this support can extend the fall to $358. Therefore, we suggest to maintain the stop loss on the long position at $400.
On the upside, a break of the $500 line will increase the probability of a rally to $600 with a minor resistance at $550.
Ripple is looking weak as it continues to trade close to the critical support line of $0.4242. This shows that the buyers are not keen to own it even at these levels.
A breakdown of the $0.4242 level will be a negative de