Crypto Frontline

BTCUSD (Coinbase)

The Bitcoin bottoming process continues and thus far, the market seems unable to generate higher highs and higher lows. The week started on the backfoot with some heavy liquidations pushing the price towards the $65,000 key support area.

So far, the price managed to recover some of the lost ground and that’s encouraging for the short-term. As long as the price stays above $65,000 we’ll look for a push higher in the bearish trend line that emerged on the 4h chart. 

Above the line, things get better for bulls as a break and hold will be an early sign for a continuation towards $74,500. Appetite for crypto remains sluggish overall, which is why traders should remain cautious with their longs, for now. 

Watch the price action for clues on whether buyers are gaining momentum. Basically, we would have to see strong gains posted in a short period of time. Below $65k, BTC could weaken towards $62k – $60k support area. The broad sentiment is that with high volatility across emerging markets and in precious metals, interest in crypto has diminished during the last couple of months. 

ETHUSD (Kraken)

Ether has also weakened last week, but at a slower pace. At this point, the weakening looks like a corrective move after a push higher. That thesis will be confirmed only if the price manages to break and hold above the 20 EMA on the 4h chart and the bearish trend line.

This is the type of confirmation bulls should be waiting for, as it will show an imbalance in the order flow tilted in their favor. If that happens this week, we expect a continuation into the $2,100 – $2,200 resistance area. 

If weakness persists, the first line of support comes at $1,800. We think some more weakness will start drawing in buyers, as there was a divergence on the RSI, followed by a modest reaction from sellers. All in all, the balance seems to be slowly shifting back in favor of buyers. 

ADAUSD (Binance)

Cardano is a cheap altcoin that traders might want to consider since the price shows bullish interest around the 27 cents key swing point. If the price continues to extend higher above that line, we think there is scope for a continuation towards the 30 cents key resistance level. 

Breaking above that area would be a sign of strong bullish interest and we would expect the price to edge higher by another 5-10%. Relative weakness across the crypto space, combined with stock markets near record highs, puts crypto in a better position, as cheaper valuations mean more upside potential. 

We would turn bearish again on ADA only if the price breaks and holds below the 25 cents support. That will mean the market is accepting lower prices and sellers will be the ones in control. At this point, that doesn’t look like the most likely scenario. However, news on the US – Iran negotiations, for instance, could dent sentiment anytime.