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Market data is provided by the HitBTC exchange.
The crypto community was divided after United States president Donald Trump tweeted against cryptocurrencies. Some speculated that a ban by Trump can be detrimental to the asset class. However, Binance CEO Changpeng Zhao believes that if Trump were to ban digital currencies, it will only lead to increased number of citizens wanting to buy them.
According to a recent survey, about 4% of Americans prefer to park their money in cryptocurrencies for a minimum of 10 years. Interest among millennials, however, is much higher at 9%. This is a significant achievement for an asset class that is just a decade old.
In the past year, Coinbase added over eight million new users, taking its total to 30 million. It is encouraging to note that even during the bear market, new users continued to show interest in cryptocurrencies. This shows that investors were not worried about talks that the bubble had burst because they saw a bright future in the long term.
TD Ameritrade CEO, Tim Hockey, believes that interest in Bitcoin had increased among investors and traders. We have repeatedly said that the current fall is a good buying opportunity. Can we spot a buy setup in any of the major cryptocurrencies? Let’s find out.
BTC/USD
Bitcoin (BTC) has dipped back to the critical support zone of $9,727.55 to $9,080. This is a make or break level for traders. If this zone breaks down, the uptrend will be over and the price can tumble to the next support zone of $6,933.90–$7,451.63.
The moving averages are on the verge of a bearish crossover, which suggests that bears are back in the game. A bearish descending triangle pattern is developing that will complete on a close below $9,727.55. Considering these negative developments on the chart, we are not recommending a trade at the current levels.
If the BTC/USD pair bounces off the immediate support and breaks out of $11,100, it will indicate strength. The next level to watch will be the downtrend line of the descending triangle, above which a retest of $13,973.50 is likely.
ETH/USD
The bulls are attempting to defend the uptrend line. If Ether (ETH) rebounds off it and rises above the 20-day EMA, it will indicate strength. We will wait for the price to sustain above the 20-day EMA before recommending a position in it. The profit objective will be a rally to $320.840 and the stop loss will be below the recent low of $192.945.
If the bulls fail to defend the uptrend line and the ETH/USD pair plunges below it, the uptrend will end and the pair can drop to $150. Both moving averages are sloping down and the RSI is in the negative territory, which suggests that bears have the upper hand.
XRP/USD
Buying an underperformer in the hope of seeing it play catch up rarely materializes. Money is made in cryptocurrencies that are in a strong trend. XRP has been stuck inside a large range of $0.27795 to $0.45 for over seven months. This shows a lack of interest among traders to own it.
Buyers emerge when the price dips to $0.27795 and sellers come to the fore just above $0.45. Within this range, the price action can sometimes be lackluster as between end-January and mid-May or become volatile as between mid-May to mid-July. Due to this uncertainty, we will avoid suggesting positions in such a range unless the risk-to-reward ratio is very attractive.
Currently, bulls are attempting to carry the price higher. They will face resistance at the 20-day EMA, above which, the momentum might pick up. But if the price turns down from the 20-day EMA, it can correct to $0.27795. If this support fails to hold, the downtrend will resume. We will wait for bulls to assert their supremacy before suggesting a trade in it.
LTC/USD
Litecoin (LTC) is trying to bounce from just above the support of $83.65. The bulls will again try to propel the price above the 20-day EMA and the downtrend line. If the price sustains above the downtrend line, it will indicate a change in trend.
However, if the LTC/USD pair fails to break out of the downtrend line, bears will attempt to sink it below $83.65. A breakdown of the $76–$83.65 support zone can drag the price to the next support at $58.
The 20-day EMA is turning down and the RSI is in the negative zone, which suggests that the bears are in command. We will wait for the trend to turn in favor of bulls before recommending a trade in it.
BCH/USD
Bitcoin Cash (BCH) is falling inside a descending channel. As both moving averages are trending down and RSI is in negative territory, the bears have the advantage. Its next support is at $251.23.
If this support cracks, the BCH/USD pair can drop to $227.70. This is a critical support from where the price had bounced in end-April, hence, we expect the bulls to defend it. The rebound will face selling at the resistance line of the channel. A breakout of the channel will be the first indication that the downtrend is losing steam.
Contrary to our assumption, if bears plummet the price below $227.70, the fall can extend to $166.98. We will wait for the price to break out of the 20-day EMA before suggesting a position in it.
BNB/USD
Binance Coin (BNB) has again dipped back to the uptrend line. This is an important support as the price has not sustained below it since early-February. The lone breakdown on July 16 quickly reversed direction and climbed back above the line on the next day. If the price rebounds off the uptrend line, we might suggest long positions above $33.
However, if the BNB/USD pair plummets below the uptrend line, it can slip to $24.1709. Currently, both moving averages are flattening out which suggests a range-bound action in the near term. Our view of a range will be invalidated if the bears sink the pair below $24.1709. In such a case, a drop to $18.30 is likely. We suggest traders remain on the sidelines until clarity emerges.
EOS/USD
EOS is in a downtrend. It has been trading between $3.8723 and $4.4930 for the past few days. Both moving averages are sloping down and the RSI is in negative territory, which suggests that the path of least resistance is to the downside.
A breakdown of $3.8723 can result in a fall to the support line of the descending channel. Conversely, if the EOS/USD pair breaks out and sustains above 20-day EMA, it can move up to the 50-day SMA. We will wait for the price to break out of 20-day EMA and form a bullish setup before proposing a trade in it.
BSV/USD
Bitcoin SV (BSV) is trading in the upper half of the descending channel, which is a positive sign. The 20-day EMA is flat and the RSI is just below 50, which points to a balance between buyers and sellers.
The BSV/USD pair has broken down of the 20-day EMA. If the price dips back into the bottom half of the channel, it can fall to $125, but if the price climbs back above the 20-day EMA, we anticipate a breakout of the resistance line of the channel.
A breakout above $188.6 and the 50-day SMA will indicate a probable change in trend. Therefore, we might suggest long positions above $193 with a stop loss of $155. The target objective will be a retest of the highs at $255.620. We do not find any trade setup if the pair remains inside the channel.
XLM/USD
Stellar (XLM) has turned down from the 20-day EMA and has plunged to the $0.076–$0.080 support zone. On July 17, the price bounced off this zone. Therefore, we anticipate bulls to again defend this zone.
If successful, a rally above $0.097795 will increase the probability of the XLM/USD pair extending its stay inside the $0.08–$0.145 range. Therefore we might suggest long positions if the pair sustains above $0.098 with a stop loss of $0.075. There is a minor resistance at the 50-day SMA, but we expect it to be crossed.
Conversely, if bears sink the price below $0.076, a drop to the yearly low of $0.072545 is likely. This is a critical support below which, the digital currency will resume the downtrend.
TRX/USD
Tron (TRX) reversed direction from the downtrend line. It is currently at the critical support of $0.022. Both moving averages are sloping down and the RSI has again dipped back into the negative zone, which suggests that the bears have the upper hand.
If the TRX/USD pair dips below $0.022, it can slide to the next support at $0.017740. If this support also cracks, the next stop is $0.01289.
On the other hand, if bulls defend $0.022, the digital currency will again attempt to break out of the downtrend line and 20-day EMA. If successful, it might enter into a range between $0.022 and $0.040. We will wait for a buy setup to form before recommending a trade in it.
Market data is provided by the HitBTC exchange.