Crypto Frontline

Weekly Crypto Analysis July 5-11, 2021

Weekly Crypto Analysis July 5-11, 2021
July 04
12:13 2021

BTCUSD (Coinbase)

BTCUSD technical analysis

Source: TradingView

Although it is far from a strong bounce, Bitcoin had posted some gains over the past few days, suggesting the selling pressure is not so intense. The price had formed a higher low and a higher high on the 4h chart and now all that’s left is to see this bullish-emerging structure continue to extend higher.

For the time being, resistance had been encountered around the 4h chart 200 SMA, where there is another rejection several days ago. A break above it will signal bullish strength and a continuation towards the $40,000 area will become the most likely scenario. We’ve also highlighted a short-term ascending triangle which could act as support in case the selling pressure resumes.

A breakout below the trendline will be a sign of weakening momentum and will imply the $30,000 support area might be revisited. There had been rumors over the past few days of a large amount of Tether entering the market and that could have bullish implications on BTC and crypto valuations.

ETHUSD (Kraken)

ETHUSD technical analysis

Source: TradingView

The crypto recovery is broader and includes Ether as well, an altcoin posting better gains as compared to Bitcoin. The price action is posting new higher lows and higher highs, breaking above a key short-term resistance located around $2250 just a few hours ago. If the market will treat the broken level as support that will mean the run higher can extend heading into the new week.

ETH seems to be trending higher inside an ascending channel and we need to see if the upper band will act as a resistance line if the buyers manage to push the price towards it. Even if the market won’t respect the channel, we now see a solid bounce-back and that is raising the prospects for more gains in the short to medium-term horizon.

To negate the current bullish conditions, sellers need to break below the 1h chart 200 SMA, as well as below the channel. If that will be the case, buyers will need to defend again the key $2,000 area in order to prevent further damage.

BNBUSD (Binance)

BNBUSD technical analysis

Source: TradingView

Binance Coin is another altcoin that might be in the spotlight over the next week, considering the popular exchange platform had been recently banned in the UK. However, despite the negative piece of news, that token price did not sell off impulsively. In fact, it is showing signs of bottoming and we could start to see some more gains if a break above $320 occurs.

That will put the 4h chart 200 SMA under pressure and after that, the key $400 level, where we see rejections going back to May this year. We think there is scope for a push higher towards that zone, especially if the market sentiment will continue to improve.

On the downside, support is expected between $270 and $235, two key areas that seem to be of great interest for the bulls. A stronger technical bounce should not be surprising, given the sentiment had been beaten up for a few months.

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