Crypto Frontline

BTCUSD (Coinbase)

Bitcoin is back in full swing as the market marches higher, recovering most of June’s losses. While major stock markets have been under heavy pressure last week, BTC seems to be ignoring the crowd.

The divergence in terms of correlation acts as a boost because when there aren’t many assets going up, bulls accumulate in names that outperform. With that being said, we think there’s scope for more gains in  BTC and $70k is the resistance level. After that, attention will shift toward the ATH located around $74k.

In the absence of major crypto news, the market should focus on other stuff. In geopolitics, tensions seem to intensify in the Middle East, where Israel hit a Yemeni post. US politics are also back in the spotlight, now that the Democratic nominee has withdrawn from the presidential race. China has announced a reduction in key benchmark rates, which acts as a tailwind for global liquidity.

As you can see, the factors that could drive risk sentiment in the upcoming week are diverse. While the market seems poised to continue higher, we advise caution in case BTC breaks below the $64k – $63k area. In that scenario, the $60k level will be back into play.

ETHUSD (Kraken)

Enthusiasm is back in Ether as well, especially since a US-based ETF is poised to launch in the upcoming days, based on the latest headlines. Shifting to the price action, we can see that the $2.9k – $3k area acted as a key support, also because the daily 200 SMA was near.

What followed in an impulsive wave of buying that drove the price way above the daily 20 EMA. Since the RSI has not touched the overbought level yet, we believe the price could continue higher. The first resistance area to watch is $3,800, where a falling trend line is drawn on the chart. Above that, we think ETH can break to new 2024 highs.

Our risk-off signal will be triggered only if Ether breaks impulsively and fails to rebound above $2.9k. Based on current conditions, that scenario seems less likely to materialize in the upcoming days.

XRPUSD (Kraken)

It’s been a while since we last covered XRP and despite that, the market seems to be respecting the same key levels. On the downside, we can see how the 45 -50 cents area acted as support, preventing an impulsive drop lower.

Additionally, the last two weeks have been very bullish for XRP, which leaves us to believe that the price might be headed higher towards the 75 cents resistance area, where the top of our old range is located.

Above 75 cents, traders should shift their attention to 85 cents. We can’t say for sure what drove the latest wave of buying, but it happened and as traders, we must follow the market momentum. Right now, there is no sign of topping, meaning XRP has the ability to continue up. A break below the current July lows will change the range-bound picture.