Crypto Frontline

Weekly Crypto Analysis July 2-8, 2018

Weekly Crypto Analysis July 2-8, 2018

Weekly Crypto Analysis July 2-8, 2018
July 08
07:47 2018

Bitcoin

Bitcoin chart analysis

Source: dailyfx.com

As we have anticipated in our last weekly analysis, the Bitcoin price had continued to recover for the past week, although at a moderate pace. The price action had reached our 6,800 resistance area and at the time of writing is consolidating lower. Since the price did not manage to break above the area, we suspect some short-term weakness could prevail.

Also, there is a possibility for an inverted head and shoulders formation on the 4h chart. We currently have the left should and the head, with the neckline located at 6,800. The top of the shoulder is located at 6,200 and that is where we believe the best place for buying lies.

A break above the 6,800, however, will open more room towards the 7,000 area. Sustained buying will have the potential to drive the cryptocurrency towards 7,700 in the near term. Overall, we expect Bitcoin to continue to recover during this month, following a string of losses that started at the beginning of the year.

Ethereum

Ethereum chart analysis

Source: dailyfx.com

We have also mentioned in our last weekly analysis that Ethereum was likely to break the downward pennant in the following weeks. We did not expect however to break it so quickly, but that is exactly what happened. At the time of writing, the price of Ethereum is above the structure, after a nice and big breakout candle on the 4h chart.

Given the breakout had taken place, we expect the price to continue to recover in the near term. Conservative traders could wait for a retest of the broker structure in order to get a better price. The next important resistance level is located around 550 area.

On the other hand, watch carefully how the price action continues to unfold. Any impulsive bearish move that drives the price inside the structure again would mean 450 and 420 are the next support levels to follow.

Stellar

Stellar chart analysis

Source: dailyfx.com

Another coin that shows signs of recovery is Stellar. Having breached on the upside a range that we have marked on the chart, Stellar had kind of a choppy consolidative performance, but since the price is still above the range, we expect it to continue to advance higher. Our target for the near term is located around 0.2360-0.2413, an area where sellers had reacted in the past.

On the other hand, support should continue to emerge around 0.2035, which is very close to the top of the broken range. A strong break below it will be a sign of weakness and the price could continue to slide towards 0.17 area. However, we think that at the present time that is very unlikely to happen, the coin having the potential to advance higher in the following days.

Briefings about ICOs

According to icoalert.com, two ICOs still active are Verv – a live energy and data trading protocol, which will run for 2 more days, and Etherisc – an open protocol for decentralized insurance applications which will run for 15 more days.

In terms of the ICOs that will begin shortly, Wemark is a blockchain-based marketplace for digital content, starting with stock photography, which will begin on July 24th. Trustverse – a wealth management platform with an integrated digital estate planning protocol, will start on July 9th.