Crypto Frontline

Weekly Crypto Analysis December 17-23, 2018

Weekly Crypto Analysis December 17-23, 2018

Weekly Crypto Analysis December 17-23, 2018
December 16
09:33 2018

 

Bitcoin

Bitcoin technical analysis

Source: tradingview.com

We’ve just started the second half of December and last two weeks of 2018 are right ahead, unfortunately not as good as we expected for Bitcoin. For the past week, the bulls were unable to break and hold the price action above the 3,500 key level and thus the downside continued to extend.

At the time of writing, we’re at the 3,217 level on the Bitstamp exchange and we can see a falling wedge formation already had formed. This generally suggests a reversal of trend could occur and given that the bottom line reaches the 3,000 key support area, we could see at least a corrective move starting to unfold, probably until 2018 ends, or if not, very likely in 2019.

On the upside, 3,500 and 4,000 are two important resistance levels to watch + the 200 moving average on each major time frame. We’ve already reached the weekly 200 MA and even though some selling below it could occur, buyers are expected to have a reaction.

Ether

Ether technical analysis

Source: tradingview.com

In line with the Bitcoin performance, Ether continued to weaken, but a base had formed around the 81.20 support level. We already have two significant rejections off that level, but the overall picture does not look good for the bulls.

A downside triangle formation is occurring, with buyers being squeezed by the sellers, which could lead to a breakout in the nearest term. Usually, this type of formation could signal a bearish continuation, but given the current extreme oversold conditions, the chances are equally distributed.

If the break to the downside will occur, the 72-70 support area will follow next. If the buyers will break above the triangle formation and above the 1h 200 moving average, we could see a retracement higher towards 98-99 area taking place.

Litecoin

Litecoin technical analysis

Source: tradingview.com

It’s been a little while since we’ve last talked about Litecoin, mainly due to the poor performance it had. However, starting from December 14th, the price bounced 20% higher, after forming a base around the 22 support level.

The buying pressure had been strong enough to push the price well above the 1h chart 200 moving average, which could lead to some further gains in the near term. We suspect resistance could emerge around the 26 level and if that will fade, the 31 level follows.

On the downside, even if the price retraces lower, we expect the 200 moving average to act as a support area. If that won’t be the case, we could see further weakness towards the current 2018 lows.

From our point of view, the likelihood of a continuation higher is greater, since we did not see a 20% bounce in such a short period of time for a while.

Briefings about ICOs

In terms of active ICOs, we must mention Innovaminex, a “cryptocurrency in precious metals, which had already raised more than $2.3 million. It is a project that uses the blockchain technology to guarantee the traceability of precious metals, which raise funds until January 21st, 2019.

A project which will begin in the near term, on December 20th, is Reindeer. It is a blockchain-based project which wants to create the first worldwide case database on how to use cloud computing.