Crypto Frontline

BTCUSD (Coinbase)

Bitcoin finally managed to reach a new ATH last week and despite some temporary weakness, the upside seems intact. We say that because the price continues to float above the daily 20 EMA, still treating a short-term bullish trend line as support. 

If things don’t change, we should see further gains this week, especially since there was some positive trade-related news during the weekend. On top of that, buyers are likely to chase the upside, considering breaking to new highs is usually a positive sign. 

We might be in for an overshoot before a meaningful pullback takes place. For that matter, we see $115k and $120k as potential upside targets. Navigating an uncharted territory is tricky and the best way is to look at psychological levels or Fibonacci extension levels. 

To the downside, support should emerge around the trend and the 20 EMA. A pullback to the average will be a healthy sign, since it will enable new buyers to enter on dips, at more affordable levels. However, the flip side is that buying at this stage means gaining exposure at a high price based on historical norms. 

ETHUSD (Kraken)

Ether is now in consolidation mode and we were right to call the $2,600 – $2,700 a key resistance zone. Still, sellers were unable to move the price meaningfully lower, so we expect buyers to drive the order flow during the upcoming days.

That’s the most likely scenario because ETH continues to float above the daily 20 EMA, similar to what happens in BTC. We are far from all-time highs in this case, which might act as an incentive for buyers, since they are buying a more affordable coin. 

When BTC reached new highs, capital is slowly shifting towards altcoins and that could happen again. Looking ahead, we want to see if bulls keep pressing the key resistance mentioned above. If it happens, a breakout towards $3,000 becomes the next likely scenario.

To the downside, we see support at the 20 EMA and if that doesn’t happen, the price could slide lower towards $2,150. Either way, it seems like the price action is now favoring the upside and we don’t expect ETH to slide below the April lows soon. 

LTCUSD (Coinbase)

We are bringing back Litecoin to our weekly analysis because the price action seems to favor buyers. The daily 20 EMA acts as support and the RSI is not yet overbought. That gives bulls plenty of upside room. If they break above the daily 200 SMA + the $106 resistance line, that will confirm the upside momentum and potentially signal an extension towards $117. 

Sellers are unable to drive the price well below the 20 EMA, suggesting their impact on price is limited, for now. The need to break below $92 first and in that scenario, we think the price could weaken towards $84. However, this doesn’t look like the most likely scenario right now, so we give credit to buyers.