Price Analysis 14/08: BTC, ETH, XRP, BCH, LTC, BNB, EOS, BSV, XMR, XLM
Bitcoin has broken down of a tight range. Will it weaken sentiment and drag a few major altcoins to new yearly lows? Let’s analyze the charts.
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Market data is provided by the HitBTC exchange.
Nicholas Colas, co-founder of DataTrek Research, believes that the performance of Bitcoin in the past few days shows that it is working like a geopolitical turmoil indicator. He points out that Bitcoin predicted Hong Kong protests and some capital flight out of Hong Kong and China.
Both in Argentina and Hong Kong, investors paid a premium for Bitcoin to protect their capital during periods of crisis, but as trade war tensions between the United States and China abated, Bitcoin prices cooled off. However, Murad Mahmudov, chief information officer at cryptocurrency hedge fund Adaptive Capital, believes that investors should think big. He expects Bitcoin to hit $100,000 in the future.
Bitcoin did not react to the SEC’s decision of postponing its ruling on three Bitcoin exchange-traded fund proposals, which shows that crypto markets have matured. Is the current weakness in the crypto space a buying opportunity? Let’s find out.
Bitcoin (BTC) has dipped back below the downtrend line and the moving averages. This has triggered our recommended stop loss on the long position. The failure of bulls to build up on the gains following a breakout of the downtrend line is a bearish sign as it shows profit booking at higher levels. With no major support in sight, a drop to the critical support of $9,080 looks likely.
The support at $9,080 has held twice earlier, hence, we anticipate bulls to defend it once again. A bounce from the support will face resistance at the downtrend line and the moving averages. We expect the BTC/USD pair to pick up momentum above $12,000.
On the other hand, if the pair breaks down of $9,080, it will become weak and can drop to $7,451.63. Considering the weakness in the short term, we suggest traders wait before buying again.
Ether (ETH) turned down from the uptrend line on Aug. 12, which is a bearish sign. The failure of bulls to push the price above the uptrend line and the 20-day EMA shows a lack of buyers at higher levels.
The bears will now try to sink the ETH/USD pair below the critical support of $192.945. If this support breaks down, the next stop is at $164, but if that support also gives way, the decline can extend to $150. Both moving averages are trending down and the RSI has dipped into the negative zone, which shows that bears have the upper hand.
Our bearish view will be negated if the pair bounces sharply from $192.945. A breakout of the 20-day EMA will increase the probability of a range bound action with resistance at $235.70. We will wait for the price to break out and sustain above $235.70 before recommending a trade in it.
XRP is again correcting toward the critical support of $0.27795. Repeated retests of a support level weaken it. Both moving averages are sloping down and the RSI is in negative territory, which shows that bears are in command. If $0.27795 cracks and the price sustains below it for three days, it will signal the start of a new downtrend. The next support to watch on the downside is $0.19.
Our assumption will be invalidated if the XRP/USD pair bounces sharply from $0.27795 and rises above the 20-day EMA. If the price sustains above the 20-day EMA, it will attempt to move up to the 50-day SMA. A breakout of $0.34229 will increase the probability of a move to $0.45. We suggest traders wait for the digital currency to show signs of a revival before attempting to buy it. Until then, it is best to remain on the sidelines.
Bitcoin Cash (BCH) broke above the overhead resistance of $345.80, but it turned down from the 50-day SMA. A failure to scale the 50-day SMA has attracted s