Price Analysis 22/07: BTC, ETH, XRP, LTC, BCH, BNB, EOS, BSV, TRX, XLM

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.

Regulators and politicians around the world, barring a few, continue to hound Facebook’s Libra coin. European Central Bank board member Benoit Coeure said that Libra will not be allowed to launch until it guarantees safety for its users. Damian Collins, a senior official at the British Parliament was even more aggressive of the project as he said that it “is going to be open to massive fraud.” The recent opposition to the project indicates that it has to clear several hurdles before it can become a reality.

Libra has taken the focus away from the involvement of institutional players in the asset class. We believe that with Bakkt user acceptance for Bitcoin futures starting today, gradually the focus will shift back to institutional investors. The community will also keep a close watch on the outcome of the lunch of various crypto leaders with legendary investor Warren Buffet.

We like the way the major cryptocurrencies have not plummeted even under consistent negative news flow for the past few weeks. This shows that strong hands have purchased in the recent up move from the lows and are not panicking. A few major cryptocurrencies are looking strong and can form buy setups within the next few days. Let’s see the critical levels to watch for on the upside, which will signal the resumption of the uptrend.

BTC/USD

Bitcoin (BTC) is in no man’s land. It has been stuck between the 20-day EMA and the 50-day SMA for the past four days. This shows that both bears and bulls are not willing to take large positions and are in a wait-and-watch mode. 

BTC/USD

This uncertainty is unlikely to continue for long. Soon, we anticipate volatility to pick up. However, it is difficult to predict the direction of the next breakout. 

If the BTC/USD pair breaks out of the 20-day EMA and sustains it, we anticipate a rally to $13,973.50. A breakout to new yearly highs will be a huge positive. Traders can wait for the price to sustain above $11,100 before initiating long positions. The stop loss can be placed below the recent lows.

Conversely, if the bears sink the pair below the 50-day SMA, it can dip to $9,727.55 and below it to $9,080. A breakdown of $9,080 will be a negative that signals a deeper correction to $7,451.63. 

ETH/USD

Ether (ETH) remains positive as long as it trades above the uptrend line. However, the bounce from the line could not climb above the immediate resistance of $236. This shows a lack of buying at higher levels.

ETH/USD

If the price breaks down of the uptrend line and the recent low of $192.945, traders who have bought near the uptrend line will be forced to liquidate their positions. The next support on the downside is way lower at $150. Therefore, buying at the current juncture is not advisable.

However, if the ETH/USD pair rebounds off the uptrend line and rises above $236, it will indicate strength. It will pick up momentum after scaling the 20-day EMA. Traders can wait for the price to sustain above the 20-day EMA before entering fresh positions. We should soon see a strong directional move.

XRP/USD

XRP is trading inside a large range of $0.27795 to $0.45. Traders can trade the range by buying near the support and selling near the resistance but the price action tends to be volatile in between. 

XRP/USD

We did not suggest buying the dip closer to $0.27795 because the XRP/USD pair has been a laggard in the recent recovery. This shows a lack of interest among buyers to own it. The bounce off $0.27795 is facing selling close to the 20-day EMA. 

The bears will now try to sink the pair below the critical support of $0.27795. If successful, it will trigger many stop losses and a quick drop to $0.24508 is likely. A breakdown of such a large and long range is unlikely to stop at $0.24508. We anticipate the fall to extend to $0.19.

On the other hand, if the bulls again defend $0.27795, the price will continue to trade inside the range. We will watch the price action for a few days and then decide whether to attempt a trade.

LTC/USD

The buyers could not carry Litecoin (LTC) above the first hurdle of the 20-day EMA, which is a bearish sign. During its rally from the lows, the 20-day EMA had been a constant area of support, which has now turned into resistance. This shows that the sentiment has turned from buy on dips to sell on rallies.

LTC/USD

The bears will now try to resume the downtrend. If the LTC/USD pair breaks down of the $76–$83.65 support zone, it can drop to $58. 

However, if the support zone holds and the next rebound rises above the downtrend line, it will indicate strength. We will wait for the cryptocurrency to rise above $106 during the next rebound before recommending a trade in it.

BCH/USD

Bitcoin Cash (BCH) is in a downtrend. The pullback from close to $250 hit a roadblock at the 20-day EMA. Both moving averages are sloping down and the RSI is in the negative zone, which suggests that bears have the upper hand. They will now try to sink the price below the critical support of $227.70. If the support breaks down, a drop to $166.98 is possible.

BCH/USD

However, if the BCH/USD pair holds above the support and breaks out of the downtrend line, it will indicate a change in trend. The next move will either be a consolidation or the start of a new uptrend. We will watch the price action following the breakout and will recommend a long position if we spot a new uptrend.

BNB/USD

Binance Coin (BNB) continues to be an outperformer. It remains strong as long as it trades above the uptrend line. The bulls pushed the price above the descending channel and the 20-day EMA, which is a positive sign. However, they are facing stiff resistance at the 50-day SMA. 

BNB/USD

If the BNB/USD pair does not give up much ground in the current fall and rebounds off the uptrend line, it will indicate strong demand. The subsequent rally above 50-day SMA is likely to retest the high at $39.5941.

Conversely, if the uptrend line cracks, bears will attempt to break down of the recent lows of $24.1079. If successful, a fall to $18.3 is possible. We remain neutral on the cryptocurrency at current levels.

EOS/USD

EOS is in a