Crypto Frontline

BTCUSD (Coinbase)

Bitcoin continued to slide last week and managed to find support at $60,000. These round numbers tend to act as a powerful turning point and the corrective move higher confirms that yet again. However, Friday’s bounce seems to be short-lived, given that the price failed to continue higher at the same solid pace. 

We have US employment and inflation figures coming out this week and those are news that could weigh on all risk assets. If the pullback lower continues, we want to see if $65k acts as a solid support. If not, then we could move closer to last week’s low. 

Below it, $56,500 and $52,800 are important support levels to watch for a new bounce. Bitcoin is down almost 50% from the highs and that’s not encouraging for bulls. Even if the bottoming does take place, it might take at least a couple of weeks. Based on current market conditions, we believe a V-shaped recovery is not likely. 

Sentiment can change, though and if bulls make a new high for the week, attention will shift to $74,500 and the daily 20 EMA area. 

ETHUSD (Kraken)

This sell-off is broad-based and ETH is taking the hit as well. The price cleared the $2,120 support and now it treats the area as resistance instead of support. If this doesn’t change, we might have to see some further selling before buyers step back in at a solid pace. 

Support comes at $1,750 and if we see a break below last week’s low, the $1,500 area will be critical to watch. We expect meaningful orders on the ask these as it’s the place where the market started to rally in April last week. 

For now, the broader picture shows a bearish parabolic structure and we don’t think it would be wise to blindly buy the dip in this environment. Risk needs a lift and favorable economic indicators later in the week could provide short-term support for crypto, including ETH. 

XRPUSD (Kraken)

XRP dropped below the October lows and immediately managed to bounce back above the $1.40 area. This is the 3rd day when the price is consolidating a little above the level and that shows reluctance from either side of the market to step in aggressively. 

We expect volatility to pick up during the coming days and just to err on the safe side, it would be better to wait for a deeper pullback lower in case you are considering buying XRP. Sustained selling, however, could put last week’s low and the $1 key psychological level at risk. 

Above the October 7th low, we would treat the $1.61 as an upside target. The daily 20 EMA and the bearish trend line should continue to act as places where heavy sellers step in. We would shift to a bullish stance only after XRP breaks and manages to hold above $1.8.  At this point, that seems like a hard task for the bulls.