Crypto Frontline

BTCUSD (Coinbase)

Bitcoin ended lower last week, as the consolidation continued to extend. The price has breached the short-term channel we highlighted and found support at $112,000, an important area of support.

Looking ahead, traders should watch whether the price will be able to break above the 20 EMA on the daily chart. If that happens, $120k might be the next likely upside target. Below, $112k, we see support at $109k. 

Although the uptrend is still in play, pullbacks occur because some participants are cashing out profits. We remain bullish as long as the price keeps trading above the $100k area + the daily 200 SMA. 

Last week, we saw a pullback in major stock markets as well, suggesting a broad retracement in risk appetite. Should that continue this week, expect Bitcoin to come under pressure as well. 

We favor a consolidation with little directional bias on higher time frames, which will give short-term traders opportunities off key support/resistance areas. There is no important news expected and August is another month with thin liquidity. 

ETHUSD (Kraken)

We mentioned $4k as a key upside target for Ether and the move stalled at $3,950. Top tick to bottom tick, ETH went through a 15% correction and that gave buyers an opportunity to go long at an affordable price. 

Rightfully so, after a temporary breach below the daily 20 EMA, buying appetite seems to be returning at the start of the week. If that continues, the next likely upside targets are $3,750 and $4,000. 

Remember, this is a coin that outperformed BTC for the past few weeks and there could be more upside here in case the bullish sentiment spreads across the entire market. Only a break below $3,400 might indicate further weakness into $3,100. 

All in all, this is the right time to consider shorting ETH, expecting a large bearish drawdown. Even if a topping is due, it might take several weeks to complete. We might see weakness in the crypto space towards the end of August, based on seasonal trends. 

BNBUSD (Binance)

Binance Coin retraced sharply last week after reaching new all-time highs. The coin has been trading inside an ascending channel since February 2024 and thus far, the market continues to respect both sides of the structure. 

High volatility is typical in this market, with large moves on the upside followed by sharp pullbacks. We see that BNB reacted to the $745 – $732 key support zone and that means we see a short-term move towards $794, a prior all-time high. 

If the leg up extends higher, buyers should look for the upper side of the channel to take profits. On the flip side, should BNB weaken below $732, expect more selling into $690. We will maintain our bullish stance as long as the price keeps trading inside the channel. A strong break below the structure will be an important bearish confirmation. That’s not likely to happen anytime soon.