Crypto Frontline

BTCUSD (Coinbase)

Bitcoin had a mixed performance last week, rising during the first few days, only to give back some of the gains by Sunday. However, when looking at the broader picture, things have improved for the bulls, since the price managed to break above $22,000, a clear role-reversal level, now acting as support.

We can see a short-term bearish channel in place and while the price continues to respect it, the short-term bias remains bearish. We could see Bitcoin breaching below support and then the 200 SMA on the 4h chart will have to cap the downside. If that will also not act as a barrier, the psychological area around $20,000 will be carefully watched.

There is a slight advantage for buyers, given the breakout above $22,000. The first sign of renewed buying pressure will be when the price breaks above the 20 EMA and also the bearish channel. In that scenario, we suspect BTC is headed towards $24k and even $25k by the end of this week. Be aware of choppy trading and month-end flows, as well as the FED decisions due on Wednesday.

ETHUSD (Kraken)

The same subdued activity can be spotted in ETH, the second-largest crypto that has managed to outperform Bitcoin in July. The price seems locked in a box between $1,460 and $1,640, both sides being respected by the market for around a week.

Because the consolidation occurs after an impulsive move up, buyers are still the ones favored when the next dominant leg will start to unfold. Watch for signs of pressure around the upper side of the range and if a break occurs, then $1,700 will be the near-term target. In that scenario, ETH has more room to go, and levels like $1,900 or even $2,000 should not be excluded.

A downside break of the range, on the other hand, could mean a deeper pullback might occur. In that case, expect ETH to weaken towards $1,350 or $1,200, where buyers should resume their activity stronger.

EOSUSD (Bitfinex)

Under the radar for an extended period, EOS is posting a +10% gain over the past 7 days. The price broke above the psychological area around $1 and since then managed to consistently move higher, reaching $1.26 yesterday.

The encouraging sign is that we now see the token trading above the daily 20 EMA, something that might incentivize buyers to continue increasing their exposure. However, the upside levels to watch are $1.42 and $1.55. These are critical resistance levels and the price action could get choppy around them.

A resumption of strong selling will be signaled by a breakout below the 20 EMA. There should be no reaction from buyers after that, but only follow-through selling. From our point of view, this looks like the less-likely scenario right now, considering tech stocks are doing well, so crypto should follow suit.

Between the beginning of May and mid-June, EOS dropped from $14 to 80 cents, a very dramatic move and now it’s possible some early buyers are looking after heavily-beaten tokens.