Latest technical analysis of top 9 cryptocurrencies from an expert trader.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The market data is provided by the HitBTC exchange.
Bitcoin’s rolling 30-day annualized volatility has declined to about 61 percent from the highs of over 150 percent in 2017. The Blue Line Futures president believes that this is a sign that selling has exhausted, and cryptocurrencies are in a bottoming process.
We have also held a similar view for the past few days and have therefore been advising the long-term investors to build their portfolio on sharp dips.
Earlier this month, the hacking of the South Korean exchange Coinrail allegedly led to a sharp fall in the cryptocurrency prices. On June 20, Bithumb, the sixth largest crypto exchange by trade volume reported that it had been hacked and with more than $30 million worth of digital currencies stolen. Though this led to a knee-jerk reaction, the damage has been limited, which shows that the selling intensity has reduced.
So, should the traders start buying? Let’s see.
Bitcoin is trying to pull back from the lows. It has major resistance at the downtrend line. The 20-day EMA is also located just above this line at $7,011. If prices turn down from the overhead resistance, a retest of the June 13th lows at $6,277.23 is probable.
If the bulls manage to break out of the 20-day EMA, the BTC/USD pair should rally to $7,700 levels. The 20-day EMA is flattening out, which shows that the selling pressure is waning.
Though the initial risk to reward ratio is not attractive, we recommended a long position in our previous analysis because we believe that Bitcoin will be range bound and from the current levels, the rally can extend to $8,500 and then to $10,000 on the upside.
The traders can go long if prices sustain above $7,050 levels for four hours. The SL can be kept at $6,000.
As the initial risk to reward ratio is not attractive, please use only 40 percent of the usual position size.
Ethereum is showing short-term outperformance as it has continued to move up in the past couple of days. It has broken out of the resistance line of the descending channel and is on the verge of breaking out of the final resistance at the 20-day EMA.
Once the bulls break out and close above the 20-day EMA at $545, the ETH/USD pair should rally to the overhead resistance at $628.99. If the bulls succeed in breaking out of this level, a rally to $700 will be on the cards.
Hence, the traders can initiate long positions once the digital currency sustains above $550 levels for four hours. The stop loss can be placed below the $470 levels. As the sentiment is still negative, please keep the position size small.
Ripple couldn’t break out of the overhead resistance at $0.56270 on June 19. Lack of buying support even at these low levels is a bearish sign.
If the bulls don’t scale above the overhead resistance within a couple of days, the bears will attempt to break down of the $0.45351 levels. If successful, the XRP/USD pair can sink to $0.24, which is the next major support.
Such a fall will dent sentiment, and it will take a long time for the digital currency to recover higher. We shall wait for a buy setup to form before suggesting any trade on it.
Bitcoin Cash is facing resistance at the downtrend line. If prices turn down from here and break below the $817.8709 levels, the fall can extend to the next support zone at $777.5304-$736.0137.
Above the downtrend line, the bulls might hit a roadblock at the 20-day EMA or just above it. However, once the BCH/USD pair sustains above the $1,000 mark, chances of a rally to $1,200 increase.
Hence, we retain our buy recommendation provided in our previous analysis. Please keep the allocation size 40 percent of the average one.
EOS has been trading close to the $10.3384 levels for the past few days. Attempts to break out or break down of this level have failed.
The EOS/USD pair will turn bearish if it breaks below the $9.0887 levels, which can lead to a fall to $8.
On the upside, any attempts to rally will face resistance at the 20-day EMA, the downtrend line, and the 50-day SMA.
Therefore, we shall wait for a new buy setup to form before proposing a trade on it.
Litecoin has not seen a follow-up selling after the breakdown from the bearish descending triangle pattern. Currently, the price is stuck inside a small range of $102.974 on the upside and $90.994 on the downside.
A breakdown of the $90.994 levels can extend the fall to $84.708 and $75.131.
On the other hand, if the bulls succeed in breaking out of the overhead resistance at $107.102, it will confirm that the markets have rejected the lower levels and the digital currency is ready to move up. A failure of a bearish pattern is a bullish sign.
Hence, the traders can go long on the LTC/USD pair if it breaks out and closes (UTC) above the $108 levels with the stops below the recent lows. The target levels on the upside are $127 and $140.
Cardano has been consolidating close to the $0.16 levels for the past six days. It is following a similar trend it had between mid-March to early-April of this year.
The RSI is showing firsts signs of positive divergence. We shall turn bullish if the ADA/USD pair breaks out and sustains above the 20-day EMA for a couple of days.
On the downside, $0.13 is major support, which should attract buying. Any break of this will invalidate our assumption of a range and can lead to a fall to $0.078215.
Stellar has been trading inside a tight range of $0.21529463 on the downside and $0.24588302 on the upside for the past six days. A breakdown from this range will push prices towards the critical support at $0.184.
On the upside, the XLM/USD pair has a slew of resistances close to the $0.25 mark. If the bulls succeed in scaling above this level, a rally to $0.31 is probable.
The traders can buy on a breakout and close (UTC) above the 20-day EMA with the stops below the $0.21 levels. This is a risky trade, hence, please keep the allocation size 40 percent of usual.
IOTA is struggling to move up. The recovery attempt on June 19 could not even reach the overhead resistance at $1.33.
The IOTA/USD pair will slide to the major support at $0.9150 if it breaks below the June 18th lows of $1.0795. We anticipate buying to emerge close to the $0.9150 levels as this level has not been broken since November 27 of last year.
We should wait for a bounce from the lows to sustain before suggesting any long positions because a break of $0.9150 can sink the digital currency to $0.666.