Price Analysis 12/07: BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, TRX, XLM
Bitcoin has risen after Trump’s negative tweets. Can it continue its move up or will it reverse direction? Let’s look at the charts.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Market data is provided by the HitBTC exchange.
United States President Donald Trump bashed both Facebook’s Libra and Bitcoin in a series of tweets on July 11. However, the interesting thing is that unlike the U.S. stock markets, which respond sharply to Trump’s tweets, the crypto universe was unaffected.
Many believe that the statement from Trump is a strong positive. According to them, it gave free publicity and also underlined the importance of cryptocurrencies. Coinbase CEO Brian Armstrong considered it an achievement and said that it showed how cryptocurrencies were resilient and refused to be brought down even by global powers.
While testifying before the Senate Banking Committee, Federal Reserve Chairman Jerome Powell said that cryptocurrencies were created to replace reserve currencies, but that has not happened yet. He said that Bitcoin was “a speculative store of value like gold.”
On the other hand, Bank of England governor Mark Carney recognized the issues Facebook’s Libra is trying to address and also outlined the difficulties the project might face. Billionaire entrepreneur Mark Cuban, however, did not have much positive to say about Libra, calling it a “big mistake.”
Bitcoin (BTC) has formed a symmetrical triangle, which usually acts as a continuation pattern. It is currently attempting to take support at the 20-day EMA. If the support holds, the bulls will attempt to break out of the triangle. On a close (UTC time frame) above the triangle, the cryptocurrency can rally to $17,852.50.
On the other hand, if the BTC/USD pair breaks down of the symmetrical triangle, it can plunge to $6,047.50. However, it is unlikely to be a straight fall because there is strong support at $10,934.45 and below it at the 50-day SMA. A breakdown of the 50-day SMA will signal a deeper correction.
Currently, the 20-day EMA has flattened out and the RSI is just above 50. This points to consolidation for the next few days. We will suggest a long position after a breakout from the triangle.
Ether (ETH) broke down and closed (UTC time frame) below the 50-day SMA on July 11, which is a bearish sign. The bulls are currently attempting to rise back above the 50-day SMA. A breakout of the moving averages can result in a rally to $320.840.
Conversely, if the ETH/USD pair reverses direction from the 50-day SMA or the 20-day EMA, it can correct to the next support at $226.58. The 20-day EMA has started to turn down and the RSI has dipped into negative territory. This suggests bears have an advantage. We will wait for the correction to end before recommending a trade in it.
Ripple (XRP) has broken down of the critical support of $0.35660. This is a bearish sign. The next support is at $0.27795. The 20-day EMA is sloping down and the RSI is in the negative zone, which suggests bears are in command.
The XRP/USD pair is among the weakest major cryptocurrencies because it has quickly given back all the gains of the recent recovery. This shows a lack of buyers at higher levels. The bulls will now try to push the price above the $0.35560–$0.37835 resistance zone. If successful, the pair might enter a range. However, if the price turns down from the overhead resistance, we can expect a deeper correction.
Litecoin (LTC) is attempting to hold the support line of the ascending channel. Both the moving averages have completed a bearish crossover and the RSI is close to the oversold zone, which shows that bears have the upper hand.
If the recovery stalls at $111.8994 or close to the 20-day EMA, bears will attempt to sink the LTC/USD pair below the support line of the channel. If successful, the next support is way lower at $66.
On the other hand, if bulls scale the pair above the moving averages, a rally to $140.3450 and above it to the resistance line of the channel is likely. We will wait for bulls to ascertain their supremacy before proposing a trade.
Bitcoin Cash (BCH) plunged below the support line of the channel on July 11. This is a bearish sign. The moving averages have also completed a bearish crossover and the RSI is near the oversold territory, which suggests that the bears have the upper hand.
We now expect bulls to attempt to push the price back into the channel. If the price rises above the moving averages, it will show that the current fall was a bear trap. However, if the price fails to rise into the channel, the BCH/USD pair is likely to correct to $280. If this support also cracks, the next level to watch on the downside is $227.70.
EOS is attempting t