Crypto Frontline

Weekly Crypto Analysis December 16-22, 2019

Weekly Crypto Analysis December 16-22, 2019
December 15
08:00 2019

BTCUSD Coinbase

BTCUSD technical analysis
Source: tradingview.com

The probability for a Bitcoin Christmas rally to unfold had diminished over the past week, given that the price action broke below the triangle formation mentioned in our last analysis. On top of that, there’s little sign of impulsive buying, meaning the next Bitcoin rally could be postponed until 2020.

Since the breakout occurred on the downside, the next short-term target for Bitcoin is located around $6,600, where the price bottomed out at the end of November. In case a break below the November lows will take place, we should expect selling to accelerate further and drive Bitcoin towards $6,000.

On the bullish side, things are very complicated since we should see a break above the 4h chart 200 moving average + the $7730 resistance area in order to say that buyers are in control over the order flow. That seems like the less-likely scenario right now.

ETHUSD Kraken

ETHUSD technical analysis
Source: tradingview.com

Ether did not manage to start an impulsive move higher, given the overall negative market sentiment and continued to weaken slowly. Since the price action remains below $153, an important resistance level, we suspect the November lows could be revisited again. The bearish channel formation is still in play and on top of that, we have a major support area between $130-$124.

That’s when Ether bottomed out in March this year and could be the place where buyers start to re-emerge again. Given the low volatility, however, the bullish move could take place early into 2020. On the upside, clearing the $153 resistance level will be a great sign of buyers’ strength. It will also communicate that the next target for Ether will be close to $190, which is where the upper line of the channel is located.

ADAUSD Binance

ADAUSD technical analysis
Source: tradingview.com

Cardano had an impressive performance during H1 2019, but like Bitcoin, it started to drift lower since June. However, in the case of Cardano, almost all the year’s gains had been erased and now the token seems close to continue to break lower.

Highlighted on our chart we have the 3.53 cents support area, retested by at least 5 times during 2019. However, since September, we see the price action gradually getting squeezed towards the support area, with each bullish pullback getting weaker. That’s the main reason why we think Cardano is likely to retest the all-time lows located around 2.65 cents.

The compression is a sign of diminishing volatility and once it will start to rise, we expect a breakout to the downside. Sellers wanting to get in at a better level could wait for a correction towards a bearish trendline, highlighted on our chart. Only an impulsive breakout above it + follow-through buying will negate our current bearish view on Cardano.

Briefings about ICOs

ELAD Network will continue its IEO until December 20th. The project aims to combine the blockchain technology, smart contracts, and AI in order to build a real estate platform for investors all around the world.

Aceh Coin is an ICO project created by a company based in Indonesia, which will start a pre-sale on December 20th. Based on the Ethereum blockchain and using smart contracts, the project aims to provide an alternative to cash payments.

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