Crypto Frontline

BTCUSD (Coinbase)

Last week’s performance confirmed that Bitcoin is not immune to trade war escalations. When stocks plunge, crypto follows the same path, so traders should be updated with all the latest headlines. Speaking of technicals, BTC is stuck below a bearish trend line and continues to trade below $100k.

Looking at volumes, we see a drop during the last few days, suggesting market participants are reluctant to jump into the market, which might lead to exaggerated moves on both sides. This week we expect news-driven moves as well, since the threat of tariffs resurfaced during the weekend. 

If BTC continues to fall and clears the $95k support, attention will shift down to $90k. That’s the most critical level for bulls in the short-term because a break below will force traders to liquidate. For weeks the price has been trading inside a range between $90k and $106k. A breakout outside that zone will be met with higher volatility. 

We remain cautiously bearish and will shift to bullish only if Bitcoin manages to break and hold above the $100k mark. Let’s see how the price action unfolds, but bears have a slight edge for now. 

ETHUSD (Kraken)

On Monday last week, Ether witnessed a flash crash, clearing out all the support levels we mentioned in our weekly crypto analysis. If you recall, we did mention that a break below $3,000 might be a bearish sign, yet we weren’t expecting such a violent move. 

Luckily for buyers, the slump was accompanied by strong bullish, as the volume bars show. Still, so far there’s no follow-through buying, which doesn’t bode well for bullish sentiment. The price continues to weaken lower, trading below the daily 200 SMA for several consecutive days.

That confirms the overall sentiment deteriorated and there could be more pain down the road. Our support levels are $2,400, $2,160 and $2,000. The downside should be capped by these, barring no major news that will spook the markets. 

To the upside, the daily 200 SMA + daily 20 EMA and the $3,000 key area will act as a cluster of resistance points. Don’t forget our bearish trend line as well, which continues to be in play. A bounce can happen, but it should be short-lived. 

XRPUSD (Kraken)

XRP failed to break above $3.35, a key resistance level and started a strong counted-trend move from that area. The price found support little below $2 but, same as with ETH, buyers are not holding the lines very well.

Reluctance to keep adding new bids is a sign of weakness and might suggest the price could weaken further until buyers are incentivized by cheaper valuations. We see support at $1.9 and $1.4. Overall, XRP is still in an uptrend, but the bullish sentiment we have seen for the past two months is starting to show signs of weakness.

In terms of resistance levels, offers should emerge around $2.9 and $3.35. We are now trading below the daily 20 EMA as well.