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The market data is provided by the HitBTC exchange.
The cryptocurrency market capitalization has risen above the $215 billion mark once again. A resilient Bitcoin was the main reason for the pullback. If the leader holds ground, the investors gain confidence and start entering the markets.
Crypto hedge fund Pantera Capital is looking to raise $175 million for its third venture fund. They had previously raised $13 million in 2013 for the first fund and $25 million for the second. This shows that the demand for cryptocurrencies and related investments is still alive.
While the decline was purportedly caused by the rejection of the ETF proposal by the SEC, some experts still hope to see a Bitcoin ETF in the near future. Others, however, are not keen on Wall Street money entering the crypto world. They believe that Wall-Street managed money will cause more problems.
Cryptocurrencies are currently pulling back from their lows. So, should the traders start buying at these levels or wait? Let’s find out.
Bitcoin continues to trade within the range of $5,900.06—$6,617.5. Currently, the bulls are making another attempt to break out of this range. Above the range, the virtual currency can again face resistance at the 20-day EMA, at the downtrend line of the descending triangle and at the 50-day SMA.
For the past seven days, the bears have repeatedly pushed prices down from the $6,617.5 mark. We believe that if the bulls finally scale it, the momentum will carry it above the 20-day EMA and the downtrend line of the descending triangle.
Therefore, we retain the buy recommendation provided in the previous analysis.
Our assumption of a bull move will be invalidated if the BTC/USD pair breaks down of $5,900. Another possibility is that the price remains inside the range for a few more days, forming a bottom.
As prices are in a range, false breakouts are possible. Hence, we have suggested buying only if we find the price holding for four hours. If prices retreat following a breakout and show weakness, the long positions should not be taken.
As always, traders should trail the stops higher if the position moves in their favor.
Ethereum is struggling to stay above the $300 mark. For the past two days, it has retreated from this level.
Both moving averages are sloping down and the RSI is still in the oversold zone. This shows that the bears still have an upper hand. The pullback will face selling pressure at the 20-day EMA, which is close to the previous support of $358 that will now act as a resistance.
If the ETH/USD pair sustains above $358 for three days, it will signal a probable change in trend. We shall wait for a new buy setup to form before suggesting any long positions on it.
Ripple was deeply oversold. It is currently in a pullback that can carry it to the downtrend line 2 where we expect a strong resistance.
The XRP/USD pair is one the worst performers among the top cryptocurrencies. Hence, we don’t advise buying the first pullback from the lows. The trend remains bearish with both moving averages still sloping down.
It has a slew of overhead resistances that will act as a hurdle, attracting selling. Hence, it is suitable only for the very short-term traders who can enter and exit positions quickly.
The swing traders or long-term investors should wait for the pair to complete a bottoming pattern and then buy it. Until then, it is best to stay with the outperformers.
After failing to climb above the $537.8221 level for the past three days, Bitcoin Cash is again attempting to scale the overhead resistance and the RSI is trying to exit the oversold zone.
On the upside, the bulls will face strong resistance at the 20-day EMA. After this is crossed, the 50-day SMA and the downtrend line will act as the next roadblock.
On the downside, if the BCH/USD pair plunges below $473.9060, it can slide to $400. We will wait for the price to break out and sustain above both moving averages before turning positive.
Currently, we don’t find any buy setup, hence, we are not proposing any trade on it.
EOS has finally made a move today, after struggling to move up for the past two days. However, both moving averages are sloping down and the RSI is still in the negative territory, which shows that the sellers have an upper hand.
Any recovery will face resistance at the 20-day EMA and above that at the 50-day SMA. The bulls have not broken out of the 50-day SMA since June 9. Hence, a break out of it will indicate strength.
In April of this year, the EOS/USD pair picked up momentum only after breaking out of the 50-day SMA. Hence, we might suggest long positions after the price sustains above the 50-day SMA. If a new setup develops before…