Crypto Frontline

Weekly Crypto Analysis July 19-25, 2021

Weekly Crypto Analysis July 19-25, 2021
July 18
16:02 2021

BTCUSD (Coinbase)

BTCUSD technical analysis

Source: TradingView

Another week and more losses for Bitcoin, with the only positive news seen in the reduction of the volatility and aggregate value lost. The price is trading inside a bearish channel and looks poised for a retest of the key $30k area unless the structure highlighted in our chart will be breached on the upside.

At the time of writing, the price is consolidating higher, yet struggling to break above the 4h chart 20 EMA, a sign of poor buying sentiment. If the recovery will extend over the next few days, the $33.5k area should be the first key resistance area to watch.

If weakness will persist, we need to watch how buyers will react once the price reaches $30,000. That is where they’ve resumed at the end of June and it could happen again. However, technical conditions are not favorable for the time being and more hints need to show up until we can expect a larger pullback on the upside.

ETHUSD (Kraken)

ETHUSD technical analysis

Source: TradingView

For the past several days, ETH had been trading below $2k, a key psychological area that once broken on the upside in April, led to a massive move up. Now that sellers had managed to erase all the gains, and buyers are struggling to keep the downside limited, the sentiment took a U-turn and we can’t make any positive forecasts for the next week.

We suspect there is room for more selling and one of the first areas to watch is $1,500. In order to reach it, sellers will need to push the price below $1,750, where buyers have shown some resilience.

The price action is now trading longer below the daily 200 SMA, suggesting the sellers are more in control and the near-term outlook can only remain bearish. We need to warn our readers that the price action context looks to meet pre-breakout conditions and eventually, there is a high probability for a new burst in volatility and a new wave of aggressive selling.

ADAUSD (Binance)

ADAUSD technical analysis

Source: TradingView

Cardano is one of the major altcoins that is still up for the year substantially. That is something worth noting, especially since Bitcoin has erased all gains made since January. However, the technical picture does not look good at all, given each of the three pullbacks witnessed since April had been weaker and weaker.

This is suggesting a diminishing bullish strength and could end up in an impulsive move lower. The price is weakening and the bearish parabolic shape of the overall picture makes us question the market’s ability to keep ADA above the key psychological area around $1.

We think traders should pay attention to how the price will perform around the daily 200 SMA and also around the highlighted area on the chart. A breakout below could mean more gains will be whipped out in the months ahead.  Worst-case scenario, ADA might get back to the area around 39 cents, which had not been touched since February this year.


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