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Market data is provided by the HitBTC exchange.
Hester Peirce, commissioner at the United States securities regulator, believes that the exchange-traded fund (ETF) application by the Winklevoss twins should not have been rejected. She has requested her co-commissioners to be open to innovation in the ETF space because a Bitcoin ETF, if passed, is likely to boost investment by large players.
Facebook is in talks with the U.S. Commodity Futures Trading Commission (CFTC) about its stablecoin that is expected to launch in 2020. Chairman J. Christopher Giancarlo said that no formal application has been received yet from Facebook, but he went on to say that the regulator is keen to understand the coin better.
Though the rally from the lows has turned around sentiment among traders, many skeptics remain. Venture capitalist Jason Calacanis believes that Bitcoin will plunge as it will be replaced by a new technology. On similar lines, research firm Gartner believes that the current blockchain technology being used by enterprises may have to be replaced within the next 18 months.
BTC/USD
Bitcoin (BTC) is finding strong support closer to the 20-day EMA but is facing profit booking at higher levels. This points to a range formation where the bulls buy closer to $8,000 and book profits near $9,000. Currently, both the moving averages are sloping up, which is a positive sign. But the negative divergence on the RSI indicates that the upside momentum is losing steam.
If the bears sink the BTC/USD pair below the 20-day EMA and $8,000, a drop to $7,413 is probable. On the other hand, if the bulls reverse direction from the current levels and ascend $9,053.12, a rally to $10,000 is possible. We will wait for a reliable buy setup to form before suggesting a trade in it.
ETH/USD
Ethereum (ETH) is facing a stiff resistance close to the $280 mark. On the downside, the 20-day EMA has been acting as a strong support. However, we expect one of the levels to give way soon. The indicators are giving conflicting signals. Though the uptrending moving averages indicate strength, the negative divergence on the RSI points to a correction.
If the bulls scale above $280, a rally to the $300–$322 zone is probable. We anticipate the ETH/USD pair to face a stiff resistance at $322. Conversely, if the pair slips below the 20-day EMA, it can drop to $225.39, which is a critical support. If this support cracks, we can expect a deeper correction. We do not find any reliable buy setup at the current level.
XRP/USD
The recovery in Ripple (XRP) seems to have hit a wall in the $0.45–$0.47919 zone. This is the third instance in which the bulls have failed to scale this resistance zone. Therefore, we suggest traders book profits on 40% of their long positions close to $0.45 and keep a stop loss of $0.35 on the rest. We will soon trail the stops higher.
The moving averages are sloping up, which is a positive sign, but a failure to scale above the resistance zone is likely to attract profit booking that can drag the price back towards the 20-day EMA. If this support also breaks down, the XRP/USD pair can plunge to $0.37835. On the other hand, if the bulls push the price above the overhead resistance zone, a rally to the target objective of $0.60 will be in the cards.
BCH/USD
The trend in Bitcoin Cash (BCH) is bullish as it is still trading inside the ascending channel and above its 20-day EMA. However, the 20-day EMA is flattening out and the RSI has formed a negative divergence, which suggests that momentum is waning.
If the BCH/USD pair dips below the 20-day EMA, it can slide to the 50-day SMA. Contrary to our assumption, if it rebounds sharply from the 20-day EMA and breaks out of the channel, it will indicate strength. The next target to watch on the upside is $638.99. We should see a decisive large range move within the next couple of days.
EOS/USD
EOS is facing stiff resistance near the $9 mark. The price turned down from $8.6503 and corrected to the 20-day EMA. We expect buyers to step in and support the digital currency at the 20-day EMA and below it at $6.8299.
A breakdown of $6.8299 will indicate a loss of momentum and a deeper fall to the 50-day SMA. On the contrary, if the EOS/USD pair rebounds from the support zone, it can move up to $9 and above it to $9.60. Currently, the 20-day EMA is flattening out and the RSI is just above the midpoint. This shows balance between the bulls and the bears.
LTC/USD
Litecoin (LTC) has been consolidating between $102.4199 and $120.1518 for the past four days. This tight range is unlikely to continue for long. We should soon see a large range breakout. It is difficult to predict the direction of the breakout because of contradictory signals from the indicators. The moving averages are sloping up, which is a positive sign. However, the RSI has maintained its negative divergence for the past few days, which is a bearish sign.
If the LTC/USD pair plummets below the 20-day EMA, it will drop to $91. If this support also gives way, it will indicate advantage to the bears. On the contrary, if the pair bounces off the current levels and breaks out of the $121.9018–$127.6180 resistance zone, it can pick up momentum and move towards its target objective of $158.91. For now, the traders can retain the stops on the remaining long positions at $90. We will trail it to $100 after watching the price action of the next couple of days.
BNB/USD
Binance Coin (BNB) has been consolidating near the 20-day EMA for the past four days. If the price slips below the 20-day EMA, it can decline to the 50-day SMA. As both the moving averages are sloping up and the RSI is in positive territory, the bulls still have the advantage. Hence, we will look for buying opportunities on dips after the price stabilizes.
Our bullish view will be negated if the BNB/USD pair breaks down and sustains below the 50-day SMA. Such a move will indicate a likely change in trend, which can either result in a range formation or a deeper correction.
On the other hand, if the pair rebounds off the 20-day EMA, it can move up to the resistance line, which has acted as a major barrier for the past few days. A breakout of the resistance line can carry the cryptocurrency to $40 and above it to $46.1645899.
BSV/USD
The bullish momentum in Bitcoin SV (BSV) remains intact. After a minor correction for the past three days, the bulls are attempting to resume the up move. This is a positive sign as it indicates that the momentum players are unwilling to wait for a deeper correction to buy.
The first stop on the upside is the lifetime high of $254. A breakout of this can propel the BSV/USD pair to $307.789 and above it to $340.248. When a cryptocurrency is backed by news and momentum, it can continue to surprise to the upside for a long time. Hence, instead of booking complete profits, traders can keep scaling the stops higher. We suggest traders book partial profits at periodic intervals because a vertical up move is usually followed by a waterfall decline.
If the bulls fail to scale $254, the pair might remain range bound between $175 and $254 for a few days. A breakdown of $175 will break the momentum and can plunge the price to $152.015, which is 50% retracement of the recent rally. Considering the high risk involved, we will not suggest a trade in it.
XLM/USD
Stellar (XLM) has been trading between the 20-day EMA and the overhead resistance of $0.14861760 for the past four days. The moving averages have flattened out, which suggests a consolidation in the short term.
If the XLM/USD pair breaks down of the 20-day EMA, it can fall to the 50-day SMA, which is likely to act as a strong support. Thereafter, the pair might remain range-bound between the 50-day SMA and $0.14861760 for a few days. Our assumption will be invalidated if the bears sink the cryptocurrency below the 50-day SMA. In such a case, a drop to $0.08641170 is probable.
On the upside, a breakout and close (UTC time frame) above $0.14861760 will complete an inverse head and shoulders pattern that has a target of $0.22466773. We retain our buy recommendation given in an earlier analysis.
TRX/USD
Tron (TRX) hit our first target objective of $0.040 on June 2. However, profit booking dragged the price lower from the highs of $0.04156575. Currently, the digital currency can decline to the 20-day EMA, which is likely to act as a strong support.
The 20-day EMA is sloping up and the RSI is in the positive territory, which suggests that the bulls have the upper hand. If the TRX/USD pair bounces off the 20-day EMA and breaks out of $0.04156575, it will move towards the next target of $0.050.
Conversely, if the price breaks down of the 20-day EMA, it can dip to the breakout level of $0.02815521. Traders who have long positions can keep their stops at breakeven. If the pair struggles to break free of $0.040 during the next attempt, profits on 40% of existing positions can be booked. We will soon trail the stops higher.
Market data is provided by the HitBTC exchange.