Price Analysis 15/07: BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, TRX, XLM
Can Bitcoin again lead the next leg of the recovery? 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.
The sharp recovery from the lows led by Bitcoin was largely based on the pretext that institutional players had finally started to take greater interest in the asset class. The sharp uptick in Bitcoin futures volumes and increased demand for Grayscale Bitcoin Trust shares was thought to be indicative of this.
However, Binance's chief executive Changpeng Zhao, in an interview with Bloomberg, said that there has been an equal growth in both institutional and retail trading. The retail traders still account for about 60% of trading volume at Binance, which shows that institutional trading growth “has not increased that tremendously in 2019 yet."
Strong opposition to Facebook’s Libra project and negative tweets by United States President Donald Trump gave reasons for bulls to book profits. Though some major altcoins have corrected close to their yearly lows, Bitcoin is still holding well above it. Hence, we are viewing the current fall as a buying opportunity. Should traders buy now or wait for lower levels? Let’s analyze the charts.
Bitcoin (BTC) broke below the symmetrical triangle on July 14, which is a bearish sign. The 20-day EMA is flattening out and the RSI is just below 50, which suggests a balance between buyers and sellers.
Currently, the BTC/USD pair is attempting to bounce off the 50-day SMA. The bulls will face stiff resistance at 20-day EMA but if they succeed in pushing the price above it, a rally to the resistance line of the triangle is probable.
However, if the price reverses direction from the 20-day EMA and plummets below the 50-day SMA, it can drop to $8,900 and if that level also breaks down, the next support is way lower at $7451.63. As the pair has been strong and is still quoting above its 50-day SMA, we remain bullish on it. However, we will wait for the price to show signs of a turnaround before recommending a long position in it.
The bulls could not push Ether (ETH) above 50-day SMA on July 12. The price turned down sharply and broke below the next support of $224.086. Currently, the digital currency is attempting to bounce off the uptrend line.
The moving averages are on the verge of a bearish crossover, which shows that bears are back in the game. A breakdown of the uptrend line will be a negative sign that can result in a deeper correction to $160.
Conversely, if bulls succeed in sustaining the price above $224.086, it will indicate demand at lower levels. Any rally will face stiff resistance at the 20-day EMA. We will wait for the price to trade above $224.086 for a few days before suggesting a long position in it.
Ripple (XRP) has been among the worst-performing major cryptocurrencies. It did not participate in the recovery and has fallen sharply when the sentiment turned negative. The next supports on the downside are at $0.27795 and below it at the yearly low of $0.24508.
Both the moving averages have turned down and the RSI is close to oversold territory. This suggests that the bears are in command. A breakdown to new yearly lows will be a huge negative for the cryptocurrency.
However, the XRP/USD pair has not closed (UTC time frame) below $0.27795 since mid-December last year. Hence, we anticipate buying close to the support. Any attempt to recover will face stiff resistance at the 20-day EMA. We will wait for buyers interest to return in the pair before recommending a trade in it.
Litecoin (LTC) has broken down of the ascending channel. It is currently bouncing off the next support of $83.65. The 20-day EMA is sloping down and the RSI is in oversold territory, which suggests bears are in the driver’s seat. If the digital currency breaks down of $83.65, it can drop to $66.
Conversely, if the LTC/USD pair bounces off $83.650 and re-enters the channel, it will be a positive sign. Any recovery will face selling at the 20-day EMA. We will wait for the price to sustain inside the channel before suggesting a trade in it.
Bitcoin Cash (BCH) is in a downtrend. It is trading inside a descending channel. The 20-day EMA is sloping down and the RSI is close to oversold territory, which suggests the bears are in command.
The bulls are currently attempting to keep the BCH/USD pair inside the channel. If successful, the price can move up to the resistance line of the channel. A breakout of the channel will be the first sign of a trend change. However, if the price breaks down of the channel, the next support is at $227.70. If this support also cracks, the correction can reach $166.98.&n