Crypto Frontline

Weekly Crypto Analysis July 12-18, 2021

Weekly Crypto Analysis July 12-18, 2021
July 11
13:31 2021

BTCUSD (Coinbase)

BTCUSD technical analysis

Source: TradingView

Bitcoin volatility is still low and has been for the past week, showing the same indecision among market participants. The price continues to treat the daily 20 EMA as resistance yet the selling emerging around it very weak, communicating a subtle change in the order flow might be underway.

If that will be the case, a breakout above $36k and a close above the 20 EMA will be an indication for buyers emerging, which could push Bitcoin towards $40k or even $45k during the next several weeks. For that to happen, volatility has to rise again and it is very unlikely to see the same performance as several months ago, due to the summer seasonality.

On the other hand, in case the price will continue to trade below the 20 EMA, expect the $30k area to act as a support. A breakout below $27.5k will be a sign of weakness that could signal Bitcoin is poised for more selling in the near term. Interest in Bitcoin is low for the time being and that is not good for a potential recovery.

ETHUSD (Kraken)

ETHUSD technical analysis

Source: TradingView

A little more activity can be spotted on ETH, which had not been able to keep above the 200 SMA on the 4h chart. The price sold off from around $2.4k and it is now consolidating near $2.1k, as weekend activity continues to remain subdued. It is hard to determine which is control since, given the mixed technical picture.

We continue to believe that the area around $2k will be key to decide which side of the market will dominate the order flow. As a result, as long as the price trades above it, the buyers are slightly in control and the upside is more favored. A break and hold above the 200 SMA will be a sign of improving buying sentiment.

Breaking below the $2k area will put the June lows under pressure. Further selling below that will mean ETH is poised for a retest of $1.5k, further dampening the future prospects.

ETCUSD (Coinbase)

ETCUSD technical analysis

Source: TradingView

The low volatility in the highest cryptocurrencies pushes traders towards smaller altcoins. Ethereum Classic had been slightly more active as compared to Bitcoin, yet we see in this case the bearish sentiment is still dragging the price lower. Given we see lower lows and lower highs, ETC could weaken further, and the key levels to watch are $40, the daily 200 SMA, and $25.

All three are key support areas and buyers can resume around them. A break and hold above the daily 20 EMA will show an improvement in buying appetite. That could be the start of a longer move higher that can push ETC back towards the $25 area.

Same as other cryptocurrencies, ETC seems to be in a bubble-bursting phase, as the gains seen during the first half of the year are now vanishing. The situation had changed and now the selling moves can overshoot on the downside.


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