BTCUSD Bitstamp
Source: tradingview.com
After retesting the 4h chart 200 moving average, Bitcoin started a new leg lower that seems to be headed towards the $9,000 area, where we could see some reactions from the buyers. A breakout below it could mean that the price will head towards the bottom line of a descending price channel, which is where the $7,500 support level is also located. The price action structure at this point suggests that the sellers are still in control over the order flow.
We expect buyers to react around the mentioned areas, but until then there’s little hope for a stronger surge. What’s even more concerning for the bulls is that now Bitcoin is locked into a bearish price formation, with little prospects that an upside breakout might occur anytime soon. Our bias will remain on the sell side, as long as the price continues to trade inside the channel.
ETHUSD Kraken
Source: tradingview.com
Ether did not manage to break back above the key $227 role reversal level. Sellers managed to keep the price below the level as we see selling interest emerged impulsively around it. On the other hand, buyers did not give up on the ascending trend line which goes back to December 2018. Following a burst in volatility, we are now seeing a new compression phase, which might bring further losses for the second largest crypto.
A break below the July lows and the $187 support area will raise serious concerns for the buyers as more losses could loom. On the other hand, if the trend line will hold, we could see a new retest of the $227 level and in case of an upward breakout, the recovery could extend towards the 200 MA or the $280 area.
BCHSVUSDC Poloniex
Source: tradingview.com
Several weeks ago, we’ve talked about the key $173 level in Bitcoin SV and following a new strong upward move, the bullish momentum has already begun to fade around it. This looks like a classic breakout-and-pullback setup and it only confirms that the pump-and-dump scheme we suspect continues to be on the negative phase.
As long the price remains below $173, we think there’s a great chance we will revisit the $118 area, which is where the bullish move started. However, in the longer run, we expect Bitcoin SV to weaken further, towards the $85 area, where the next significant support is located.
The less likely scenario at this point seems to be the strong breakout above $173 and above the 4h chart 200 moving average. That will be a strong confirmation that buyers returned in force and it could also mean that the June highs might be revisited as well.
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