Price Analysis 27/07: BTC, ETH, XRP, LTC, BCH, BNB, EOS, BSV, XLM, ADA
Bitcoin price is at a critical level. If the support cracks, it can result in a sharp fall to $7,450.
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 sentiment in the crypto space is fragile. Even a whiff of negative news or rumor results in sharp selling. The markets are ignoring the favorable news and are focused on negative news and events. However, at lower levels, we expect the institutional players who had missed out on the previous rally to start buying once again.
The fundamentals are improving with both the European Central Bank and the United States Fed indicating further rate cuts. We believe the launch of Bakkt’s futures platform will be a major sentiment booster and is likely to attract the institutional players once again. The hedge fund managers who have been early in the game are reaping rich benefits from including Bitcoin in their portfolio.
Bill Miller’s fund, which has diversified with Bitcoin has returned 46% in the first half of 2019.
With proper money management, these early adopters will generate huge returns and will force others to join or be left behind. Let’s see if we spot any buying opportunities after the recent fall.
After staying above the support of $9,727.55 for the past three days, the bulls scaled $10,000 today. However, aggressive selling close to 20-day EMA resulted in a fall from $10,037.96 to $9,472.62 within 15 minutes. This shows that bears have the upper hand in the short-term.
The moving averages have completed a bearish crossover, which confirms a change in sentiment from buy on dips to sell on rallies. If Bitcoin (BTC) breaks down of $9,080, which is the intraday low of July 17, we expect selling to intensify and the price to fall to the next support zone of $6,933.90-$7,451.63.
However, even after the recent pullback, the BTC/USD pair is way above its yearly low of $3,236.09. Therefore, we consider the current fall to be a buying opportunity but the traders should wait for the correction to end and a bottom to form before buying.
Contrary to our assumption, if the price reverses direction from the support and rises above the moving averages, it will indicate strong demand at lower levels. In such a case, we might suggest long positions if the breakout sustains. Until then, we do not find any bullish setups that can be bought.
The bears are attempting to sink Ether (ETH) below the uptrend line. If successful, it can drop to $192.945, below which the fall can reach $150. The 20-day EMA is sloping down and the RSI continues to trade in the negative territory, which suggests that bears are in command.
Our bearish view will be negated if the ETH/USD pair turns around from the support levels and rises above the overhead resistance of $235.70. Such a move is likely to attract buyers and the price can move up to 50-day SMA and above it, a retest of $320.840 is probable. Therefore, we suggest traders remain on the sidelines until the price breaks out and closes (UTC time frame) above $235.70.
XRP has not been able to scale above 20-day EMA since falling below it on June 27. This is a negative sign. The price has again turned down from 20-day EMA and can now retest the critical support of $0.27795.
As this level has provided support on five previous occasions (marked via ellipses on the chart), a breakdown of it will trigger many stop losses. Though there is support at $0.25408, it might not hold and the XRP/USD pair can plunge to $0.19. Therefore, long-term traders who have established long position on our previous recommendation should keep the stop loss at $0.2750.
Nonetheless, if bulls defend the support level once again, the pair will try to remain inside the large range of $0.27795-$0.450. We do not find any reliable pattern for swing traders yet.
The bears are attempting to resume the downtrend in Litecoin (LTC). It can decline to $76.7143-$83.650 support zone. If bulls fail to defend this zone, the correction can deepen to $58, which is a strong support level.
Contrary to our expectation, if the LTC/USD pair bounces off the support zone and breaks out of the downtrend line, it will signal strength. Until then, we suggest traders avoid taking fresh positions because buying in a falling market can quickly turn the trade into a loser. The best time to buy is after the price signals a trend reversal.
The bulls drove Bitcoin Cash (BCH) above the resistance line of the descending channel on July 26 but they could not scale above 20-day EMA. This attracted selling and the price has re-entered the channel, which is a bearish sign.
The BCH/USD pair can drop to $282 and if this support breaks, the next level to watch is $251.23. This