Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, TRON: Price Analysis, July 27
With the SEC rejecting one Bitcoin ETF application and postponing decision on another, we should closely monitor the markets’ reaction.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The market data is provided by the HitBTC exchange.
If an asset class doesn’t fall much on adverse news but rallies on good news, it is an indication that the trend is bullish. Various reasons are attributed to Bitcoin’s most recent 40 percent rally from the lows, but the most quoted one was the possibility of a Bitcoin (BTC) exchange-traded fund (ETF) within the next few weeks.
While there are other ETF proposals pending with the SEC, the rejection of the Winklevoss twins’ Bitcoin ETF dampens sentiment. The extent of decline following this news will give us an idea whether the trend has turned positive or if the pullback from the lows was only a bear market rally.
The Bitcoin bulls are upbeat on the coin’s future prospects. Mark Yusko, CEO and chief investment officer of Morgan Creek Capital Management, has a target of $25,000 by end of this year. He believes that the rally will continue and that Bitcoin could reach $500,000 by the end of 2024.
Similarly, Alexis Ohanian, a co-founder of the social media platform Reddit and a VC firm Initialized Capital had recently reiterated his year-end target of $20,000 on Bitcoin and $1,500 on Ethereum.
While we are also bullish, we are much more conservative in our approach. We like to take it one step at a time so as to not get carried away. The aim is to maximize profits for the readers, taking the least possible amount of risk.
When a strong overhead resistance level is scaled, it is usually followed by a retest of the breakout level. Bitcoin has completed a similar retest of the $7,750 line. This level had been previously acting as a strong resistance, and will now act as a strong support.
A strong bounce from the support level indicates that the buyers were waiting for a dip to buy. Traders who have been waiting on the sidelines to buy on a deeper decline are left stranded. They are likely to jump into the fray once the price continues its journey northwards.
So, if the bulls can break out of $8,566.4, the likelihood of a rally to $10,000 increases, fuelled by the traders who have missed the bus and are feeling left out.
However, it might not be a one-way move, as the digital currency can face resistance at $8,888 and $9,375. Therefore, we suggest traders take partial profits at critical levels. If the bulls fail to scale above $8,566, partial profits can be booked closer to $8,400 and the stops on the long positions that were initiated at $6,650 can be raised to $7,400.
Our bullish view will be invalidated if the BTC/USD pair slumps below $7,750.
Ethereum has not been able to scale the 50-day SMA for the past three days. It is currently taking support at the trendline.