Crypto Frontline

BTCUSD (Coinbase)

The bottom of the range at $30,000 seems to be weakening, considering BTC has been trading below that level most of last week. Additionally, when looking at the 4h chart, the relationship with the 20 EMA is shifting in favor of bears, which is why we give a higher probability for a continuation lower in the upcoming days.

In case that will turn out to be true, buyers could look to gain exposure around $28,500. It’s still summer and in the absence of a major catalyst to the downside, Bitcoin should manage to consolidate in a narrow range. Despite a deeper pullback, we must understand that the token is up substantially for the year and it can keep on rising later on when seasonality improves.

Bears can be trapped if Bitcoin recovers, breaking above $30,000 and more important than that in the short-term – $30,400. That will suggest the market continues to respect the range and we could see the price heading towards $31,300 once again.

ETHUSD (Kraken)

Ether failed to retest the $2,000 key area and at the time of writing, we’re seeing the coin under pressure. In case the price will break below $1,800 that will be a bearish sign and we expect more selling to follow in the upcoming days.

From a structural perspective, ETH is trading below the 20 EMA and the 200 SMA, treating both of them as resistance levels. That’s not a good time to consider buying, which is why we advise looking for stronger support areas.

If the move continues to extend lower, $1,740 – $1,700 could act as a solid demand zone. We expect buyers to emerge around that area and attempt a new push on the upside. Failure to do that could result in more selling pressure, bringing the attention to $1,600. Same as with BTC, market participants are taking profits after a very impressive run-up.

XLMUSD (Bitfinex)

While most of the top 10 cryptos are in the red, attention seems to have shifted toward Stellar. This one is up 15% during the last week and 96% since mid-June. It looks like XLM has bottomed and now the market is struggling to find a strong support area.

Traders should engage cautiously in this market because, after an impulsive surge higher, the price could chop back and forward with no directional bias for weeks. However, the 13.8 and 13.3 cents levels are places where bulls could resume purchases. These levels are even more important considering they will also be backed by the daily 20 EMA. Another support that will emerge on a deeper pullback is 11.4 cents.

We remain bullish on XLM as long as the price will trade above the daily 200 SMA. If the market sentiment improves again, the upside targets to watch are 16.8 cents and 18.6 cents. This is a very cheap cryptocurrency and the market is shifting towards beaten-down names, as BTC and ETH are close to this year’s highs.