Crypto Frontline

Weekly Crypto Analysis July 17-23, 2023

Weekly Crypto Analysis July 17-23, 2023
July 17
14:09 2023

BTCUSD (Coinbase)

BTCUSD technical analysis
Source: TradingView

Last week Bitcoin was trading around $30k and we’ve managed to anticipate the bounce towards the upper line of the range that has been in place since the end of June. However, even though the price managed to touch $31.7k, another resistance level highlighted a week ago, that wasn’t enough to spur new buying interest.

In fact, Bitcoin sold off impulsive, erasing all the gains and now we see the price struggling to bottom around $30k once again. The range continues to be in play, meaning it’s possible a new bounce can occur. We continue to believe $31.3k, $31.7k and $32.3k are key resistance levels to watch ahead.

If BTC breaks below $30k, traders should watch for a reaction around the 4h chart 200 SMA. Failure to keep the price above it could mean further weakness towards $28.5k. This looks like a scenario with a low probability, considering the market consolidates after an impulsive run higher. We continue to favor the upside and dips to be bought by opportunistic traders aiming to purchase at attractive rates.

ETHUSD (Kraken)

ETHUSD technical analysis
Source: TradingView

Ether finally touched our $2,000 target on Friday and as expected, the level acted as a solid resistance. Sellers entered the picture and erased a big part of the gains, but still, the sentiment continues to favor the upside.

As the chart shows, higher lows and higher highs inside an ascending channel are not reasons to consider the downside. Buyers need to break and hold above $2,000 and only in that case, we favor a continuation towards $2,160. At this point, there is no risk event the market should be worried about, so the move can continue to run its course.

Deteriorating sentiment will be signaled by a break below the channel and the 4h chart 200 SMA. If ETH dips below $1,825, we’ll expect the correction to extend towards $1,740 – $1,700. Based on current conditions, the bullish scenario is still more likely, but traders should never rule out a surprise.

XRPUSD (Kraken)

XRPUSD technical analysis
Source: TradingView

XRP is one of the biggest gainers for last week after a favorable US court ruling favored massive buying. The price shot up 100% in one day and has been consolidating for 5 consecutive trading sessions.

The technical break above 55-59 cents is of great importance, given the price struggled to break above it for a long time. In case XRP will continue to correct lower, we expect that zone to act as support, especially since the daily 20 EMA overlaps.

On the upside, 92 cents acted as resistance, so that’s where traders’ focus should be. Breaking above will mean $1 – $1.1 will shift as another important target. After the spike up, it shouldn’t be a surprise to see the price consolidating in a volatile range. Even though there hasn’t been follow-through buying, we continue to favor the upside. Right now XRP is retracing from overbought conditions, creating a favorable ground for what could be another leg higher.


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