Crypto Frontline

BTCUSD (Coinbase)

Bitcoin has remained flat for the last 7 days, as volatility has shifted to the altcoin space. The bull move failed to extend higher after 2 BTC whales sold a large amount in the open market. Naturally, traders and investors and wondering whether these large players know something, so the price entered a short-term correction.

The bull run is not under threat, since we are not far from the all-time high. As long as we don’t get above $122,500, we think there is room for some more selling into the daily 20 EMA or the $112k support. 

Those are areas where buyers could resume stronger and if that’s not the case, strong selling below $106k might open the door for $100k. For now, this bearish scenario carries a low probability, but everything should be considered, given the market is already up substantially for the year. 

To the upside, we see $125k and $130k as key resistance levels, if Bitcoin manages to break above the July 14th high. We expect low volatility until the end of July, barring no major news in the meantime. 

ETHUSD (Kraken)

Ether meltup continued last week and for the first time in a while, this altcoin outperformed BTC. The price surged past our key resistance levels and it’s now consolidating little above $3,700. Traders should start to get a bit cautious, because the price closed green for the past 9 days in a row. 

We are also far from the daily 20 EMA, and the RSI is close to 90, which is an extreme overbought condition. When faced with such circumstances, the most viable option is not to short the market outright, but to expect a correction. 

If that does happen during the upcoming days, we see $3,500 and $3,300 as potential candidates for where the pullback might end. Buyers should be eager to reenter on dips, especially since the sentiment has improved. A sharp reversal lower is not the most likely scenario right now, and thus we think the upside remains the path of least resistance. 

XRPUSD (Kraken)

The passage of the GENIUS Act in the US acted as a tailwind for the crypto market last week. As an altcoin operated by a US-based company, XRP upside resumed and the price broke above the January 16th high. 

That’s an important bullish development and we can already see that buyers resumed once that broken level was retested. Same as with ETH, conditions are overbought, meaning traders wanting to go long might want to wait for a pullback first. 

Below $3.4, the daily 20 EMA looks like the most likely dynamic support. Deeper selling below that should expose $2.9. A continuation on the upside should likely see XRP edge towards $3.75 – $4, where large offers might be wanting. 

Either way, the break to new highs means the bullish trend continues to extend. With that being said, traders will have an edge looking for longs in this environment.