Crypto Frontline

Weekly Crypto Analysis August 7-13, 2023

Weekly Crypto Analysis August 7-13, 2023
August 07
12:04 2023

BTCUSD (Coinbase)

BTCUSD technical analysis
Source: TradingView

Bitcoin buyers are still in an uncomfortable position, given the price fails to break and hold above the 20 EMA on the 4h chart. On top of that, despite a temporary bullish spike last week, we can easily see how the market viewed the $30,000 level as a key resistance level.

That’s not an encouraging sign as we start a new week and as things stand, we expect further weakness. Buyers have reacted successfully to our $28,500 support and if selling resumes, that is the first level you should watch. A breakout below it will open more downside room towards $27,400. The US credit rating was downgraded by Fitch last week, yields and the USD have moved up, all of which are not short-term hints for taking more risk.

Even though Bitcoin has been lower since mid-July, we don’t believe the bull move up has ended as of now. Selling is relatively contained, so there could be scope for a new push higher. For that to happen, the price needs to break above the 4h chart 200 SMA and the key $30,000 level. In that scenario, we expect Bitcoin to continue toward the highs of the year.

ETHUSD (Kraken)

ETHUSD technical analysis
Source: TradingView

Ether volatility is compressing and the price gets squeezed in between the 20 EMA and $1,820, a key support level. This looks like a bearish pre-breakout formation and because of that, we should see further weakness in the upcoming days.

In case our bearish outlook materializes, ETH should head toward $1,760 and even $1,700, on stronger selling pressure. At this stage, there isn’t a clear sign pointing towards a resumption of bullish momentum. Sellers are the ones in control until the price breaks and holds above the 20 EMA.

The first upside target for a move up is $1,880, where we can see the 200 SMA on the 4h cart. All options are on the table, given the RSI is trading around 50. Conservative sellers might want to wait for a pullback higher, in order to catch a better price.

We’ll be back in bullish mode once ETH breaks and holds above $1,900. That could unlock further upside toward $2,000, a key resistance we’ve talked about many times.

XRPUSD (Kraken)

XRPUSD technical analysis
Source: TradingView

Although XRP buying surged after the court win against the SEC, bullish interest cooled off one day after. Still, the price action structure remains favorable for buyers, but with such large corrections lower, the key is finding strong support levels.

As we’ve talked about in the past, we view 59 – 56 cents as an important area to watch. The market breaking above them was a major improvement for the bulls and now we want to see them successfully defending the upside.

Overall, XRP is trading inside a range between the above-mentioned support and 85 cents. As a result, buyers can look for opportunities as we approach the bottom of the structure. We remain bullish on this coin as long as it managed to keep above the daily 200 SMA.


No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment