Crypto Frontline

BTCUSD (Coinbase)

The uptrend continues and we can notice that BTC almost touched the $70k resistance before starting to weaken mildly. At the same time, the price action is still inside a bullish channel, reinforcing our view for sustained momentum.

Donald Trump’s comment at a Bitcoin conference during the weekend energized crypto enthusiasts even further, but we would like to advise caution since the election takes place in November and nobody knows who will win.

In the absence of other major news, technical will dictate the pace, so a break above $70k will mean Bitcoin might be on pace to retest the ATH not too far from now. Be aware that on Wednesday we have another FOMC meeting, which could leave its mark on risk assets, including BTC.

As a result, on the downside, we see support around $67,300 and $66,500. Breaking below both levels impulsively will be a sign of weakness, since that will place Bitcoin below the ascending channel. Currently, the FOMC is expected to be a non-event, so if that happens, dips should act as a new opportunity to get long.

ETHUSD (Kraken)

The enthusiasm around an Ether-based ETF in the United States faded quickly and we can see from the chart how the price tumbled towards $3,100. However, the broad market enthusiasm seems to be turning the tide, given more than 50% of the losses have been recovered.

Additionally, this could be a potential inverted head and shoulders, with the top of the shoulder at $3,230 and the neckline located around $3,500. So, this pattern will be confirmed if ETH breaks above $3,500. That will open a lot more upside since our target will shift up to $4,000.

This potentially bullish structure will be negated only if Ether breaks below $3,100. That will be a sign of renewed bearish pressure. Although this is the low-probability scenario, traders should be closely monitoring the price action for further clues.

AVAXUSD (Binance)

Avalanche was down 15% last week, but as the daily chart shows, the coin is actually in consolidation mode. We can say that because for the last couple of weeks, AVAX was stuck inside a rising short-term channel formation.

When analyzing the broader picture, it does seem like a top has formed around $65, followed by an impulsive drop. However, a bear case does not develop in a straight line. Along the way, there will be numerous counter-trend bullish opportunities that could be leveraged.

With that being said, we are short-term bullish, as long as the price continues to trade inside the channel highlighted on our chart. On the upside, resistance comes at $31 and $34. Keep in mind that AVAX is trading below the daily 200 SMA, which suggests a slight tilt in favor of bears.

Below the channel, our attention will shift towards $23 and $19. The first one is actually where the current bounce started, so the market should pay attention to it once again. Those who want to get short at this point might need to remain patient.