Price Analysis 24/07: BTC, ETH, XRP, LTC, BCH, BNB, EOS, BSV, XLM, TRX
Following criticism from Donald Trump and increased millennial interest in crypto, Bitcoin is at a make or break level. What should traders do now?
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 crypto community was divided after United States president Donald Trump tweeted against cryptocurrencies. Some speculated that a ban by Trump can be detrimental to the asset class. However, Binance CEO Changpeng Zhao believes that if Trump were to ban digital currencies, it will only lead to increased number of citizens wanting to buy them.
According to a recent survey, about 4% of Americans prefer to park their money in cryptocurrencies for a minimum of 10 years. Interest among millennials, however, is much higher at 9%. This is a significant achievement for an asset class that is just a decade old.
In the past year, Coinbase added over eight million new users, taking its total to 30 million. It is encouraging to note that even during the bear market, new users continued to show interest in cryptocurrencies. This shows that investors were not worried about talks that the bubble had burst because they saw a bright future in the long term.
TD Ameritrade CEO, Tim Hockey, believes that interest in Bitcoin had increased among investors and traders. We have repeatedly said that the current fall is a good buying opportunity. Can we spot a buy setup in any of the major cryptocurrencies? Let’s find out.
Bitcoin (BTC) has dipped back to the critical support zone of $9,727.55 to $9,080. This is a make or break level for traders. If this zone breaks down, the uptrend will be over and the price can tumble to the next support zone of $6,933.90–$7,451.63.
The moving averages are on the verge of a bearish crossover, which suggests that bears are back in the game. A bearish descending triangle pattern is developing that will complete on a close below $9,727.55. Considering these negative developments on the chart, we are not recommending a trade at the current levels.
If the BTC/USD pair bounces off the immediate support and breaks out of $11,100, it will indicate strength. The next level to watch will be the downtrend line of the descending triangle, above which a retest of $13,973.50 is likely.
The bulls are attempting to defend the uptrend line. If Ether (ETH) rebounds off it and rises above the 20-day EMA, it will indicate strength. We will wait for the price to sustain above the 20-day EMA before recommending a position in it. The profit objective will be a rally to $320.840 and the stop loss will be below the recent low of $192.945.