Price Analysis 05/08: BTC, ETH, XRP, LTC, BCH, BNB, EOS, BSV, XLM, XMR
Bitcoin has resumed its uptrend. Can it break out of the recent highs? Let’s analyze the charts.
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Market data is provided by the HitBTC exchange.
The trade war between China and the United States intensified as China allowed its currency, the yuan, to fall to its lowest level since 2008. This is seen as a retaliatory move by China on the latest tariff hikes by the U.S. If the nations enter into a currency war, it will only strengthen the case for cryptocurrencies and investors are likely to flock to digital assets to protect their investments. Unlike the previous crypto bull market that had risen on hope and future prospects of cryptocurrencies, the current bull phase is being buoyed by strong fundamentals.
Galaxy Digital CEO Mike Novogratz said that macroeconomic conditions and geopolitical unrest have given “real legs” to Bitcoin’s current rally. Anthony Pompliano of Morgan Creek Digital Assets said that Bitcoin is responding appropriately to global instability. Max Keiser, host of the RT program Keiser Report, expects the momentum in Bitcoin to carry it to $15,000 this week alone.
The total market capitalization of cryptocurrencies has risen to $311 billion and Bitcoin’s dominance has hit 67.8%. This shows that Bitcoin is leading from the front. How far can this rally continue and which altcoins are likely to participate in the rally? Let’s find out.
Bitcoin (BTC) broke above the moving averages on Aug. 3 and triggered our buy recommendation given in an earlier analysis. It is now attempting to sustain above the downtrend line. If successful, it will indicate buying at higher levels that can carry the price to $13,156.96 and above it to the recent high of $13,973.50. If the digital currency hits new yearly highs, it can rise to $17,208.84 and above it to lifetime highs.
The BTC/USD pair was forming a descending triangle. However, a breakout and close (UTC time frame) above the downtrend line invalidates the bearish setup. The failure of a bearish pattern is a bullish sign. It forces the short sellers to cover their positions resulting in a short squeeze. The momentum following the breakout of the downtrend line will provide more insight on how fast can the pair reach $13,973.50.
Both moving averages are sloping up and the RSI is in positive territory, which suggests that bulls have the upper hand. While all signs on the chart point to a rally, the traders should be ready for any eventuality.
If bears sink the price back below the downtrend line, it will indicate a lack of buyers at higher levels. There is support at both moving averages, below which the bears will gain the upper hand.
Ether (ETH) has broken out of the 20-day EMA and has reached the overhead resistance of $235.70. A breakout and close (UTC time frame) above this level is likely to resume the uptrend that can carry the price to $320.84. The traders can buy as suggested in our earlier analysis.
The ETH/USD pair might face some selling at the 50-day SMA, but we expect it to be crossed after a minor dip or consolidation. The flattening 20-day EMA and RSI above 50 show that selling has subsided.
Contrary to our assumption, if the price reverses direction from just above $235.7 and dives below the uptrend line, it will signal weakness. The trend will turn down if the pair drops below $192.945.
XRP has cleared the first hurdle. It has broken out of the 20-day EMA and is on its way towards the 50-day SMA. It might face resistance at $0.34229, above which it is likely to pick up momentum. The 20-day EMA is flattening out and the RSI is just below 50, which suggests that the selling pressure has abated.
Traders can initiate long positions on a close (UTC time frame) above $0.34229 with a stop loss of $0.2750. The target objective is a move back to $0.45.
Our bullish view will be negated if the XRP/USD pair turns down either from $0.34229 or from the 50-day SMA and plummets below the critical support of $0.27795. If that happens, the downtrend will resume, which will be a huge negative.
Litecoin (LTC) spurted higher following the halving, but the price is facing resistance at $105.6760. If bulls fail to scale this level, the digital currency might remain range bound for the next few days. The flattening 20-day EMA and RSI just above 50 also points to a consolidation in the near term.
The LTC/USD pair will turn bullish if it breaks out and closes (UTC time frame) above $105.6760. There is a minor resistance at the 50-day SMA, above which the pair can move up to $120 and above it to $140.3450. Therefore, traders can buy on a close above $105.6760 and keep a stop loss of $90. The trend will turn bearish on a breakdown of $76.7143–$83.65 support zone.
Bitcoin Cash (BCH) has broken out of the overhead resistance at $345.80, which completes the ascending triangle pattern. If the price closes (UTC time frame) above $345.80, traders can initiate long positions as recommended in an earlier analysis. This pattern has a target objective of $440.37, above which it can move up to $500.
The 20-day EMA has flattened out and the RSI has climbed into positive territory, which suggests that the bulls are making a comeback.
Our bullish view will be invalidated if the BCH/USD pair reverses direction from the 50-day SMA and plunges below the support line of the ascending channel. In such a case, a drop to $227.70 is possible.