Price Analysis 26/07: BTC, ETH, XRP, LTC, BCH, BNB, EOS, BSV, XLM, ADA
A few altcoins are showing first signs of a turnaround. Can the recovery last or will it fizzle out at higher levels?
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Market data is provided by the HitBTC exchange.
A new study by digital asset management fund Grayscale Investments shows that 83% of American investors are likely to invest in Bitcoin. Another interesting finding was that the average age of Bitcoin investors was 42. This means that even traditional investors are allocating some portion of their portfolio to cryptocurrencies. As the markets mature, we expect cryptocurrencies to occupy a larger portion of portfolios.
One thing that can make cryptocurrencies more attractive is the incessant money printing by most of the central banks around the world. Morgan Creek Digital Assets co-founder Anthony Pompliano believes that if the European Central Bank cuts rates, it might work as “rocket fuel” for Bitcoin. Pantera Capital founder Dan Morehead expects Bitcoin to reach $42,000 by the end of this year and $356,000 within a couple of years.
However, not everyone is bullish on cryptocurrencies. United States Treasury Secretary Steven Mnuchin opines that he is unlikely to talk about Bitcoin in another 10 years and he is not going to buy Bitcoin either. While we remain bullish for the long term, we depend on the charts to provide us an insight for the short term. So, let’s look at the charts and see if we spot any buy setups.
Buying in a downtrend or during uncertainty can result in huge losses. Therefore, patience is key for traders who want to be in the game for the long term and be profitable. Bitcoin (BTC) is currently hovering above the important support zone of $9,727.55 to $9,080.
It is very difficult to predict whether the price will bounce from here or correct. The 20-day EMA, which shows the short-term trend, has started to turn down and the RSI has been trading below 50 for the past few days. The moving averages are on the verge of a bearish crossover. These indications suggest that bears have the upper hand in the short term.
Nevertheless, the 50-day SMA is still sloping up, which shows that the medium-term trend is up. When the long and medium-term trend is up, dips should be used as a buying opportunity. Therefore, we are waiting for a bottom to be formed before recommending a long position.
The next few days will confirm whether the BTC/USD pair bottoms out at the current levels or at the next support zone of $7,451.63–$6,933.90. On the upside, we anticipate the pair to pick up momentum after it breaks out of the downtrend line of the descending triangle.
The bulls have managed to keep Ether (ETH) above the uptrend line, but are unable to carry it above 20-day EMA. This shows hesitation among buyers at higher levels. If the price does not bounce sharply within the next few days, the uptrend line might break down.
If the ETH/USD pair slides below the uptrend line and the recent low of $192.945, it can quickly drop to $150. The 20-day EMA is sloping down and the RSI is in the negative zone, which suggests that the bears have the upper hand.
But if the pair bounces off the current levels and rises above the 20-day EMA, it can move up to $320.840. It will face resistance at the 50-day SMA, but we expect it to be crossed. We will wait for the price to sustain above the 20-day EMA before recommending a trade in it.
XRP is not generating any interest from buyers. The sellers are also not attempting to break down of the critical support at $0.27795. This might result in a consolidation around the current levels for a few days.
If the price remains below the 20-day EMA, bears are likely to attempt to breakdown of $0.27795 again. If this critical support breaks down, the XRP/USD pair can enter a downtrend, which will be a huge negative.