Crypto Frontline

BTCUSD (Coinbase)

What’s happening with Bitcoin right now can be labeled as a slow grind higher, with the price getting close to the all-time high. We can see how the price action broke above a bearish channel formation and that raises the prospects for a continuation higher. 

On the macro side, financial markets are expecting more data about tariffs, but even if rates end up high, those levels will apply starting with August 1st, leaving some room for negotiations. Because of that, we favor the upside as long as BTC doesn’t break back inside the channel and below the daily 20 EMA. 

If this bearish formation occurs, then we will have to shift our attention back to $100k, where pullbacks have been met by impulsive buying activity. In the longer run, the bullish trend continues to be intact, which is why buyers are more likely to enter on dips, taking advantage of cheaper valuations. 

A break above $110k and the prior ATH will mean buyers will shift attention to $115k and $120k. We expect stronger resistance around that area a couple of weeks later because the crypto market will enter a weak seasonal period. 

ETHUSD (Kraken)

After weeks of choppy activity, buyers are once again testing key resistance levels in Ether. We see how the market managed to break above the daily 200 SMA and now attention is shifting to $2,700. 

Because we have witnessed so many rejections off that level, this is the time to consider a breakout higher. When the price knocks on key levels multiple times, usually a break and continuation happens. 

For that matter, if ETH breaks and holds above $2,700, we will expect the leg up to extend into $3,000. Ether has been an underperformer when compared to BTC and record levels of short-selling activity might act as a boost on the way up if the price action starts to favor buyers. Sellers will have to cover their shorts, thus creating a squeeze. 

Only if the price breaks back below $2,400 should we start to think about pulling back closer to $2,100 – $2,000. Right now, that looks unlikely. 

LINKUSD (Kraken)

A positive performance in ETH should act as a tailwind for Chainlink. LINK already reacted positively after testing the $10.8 support. The inability of sellers to push the price below support is now leading to short covering.

After testing the daily 20 EMA, sellers can’t push the price back towards support, which is why we suspect there’s scope for further upside during the upcoming days. If that scenario materializes, LINK should inch closer to $16.5 or $17.3, two important resistance levels on the upside. That area is also where the 200 SMA overlaps. 

This bullish structure will be negated on a break below $12. If that’s the case, attention will shift back to $10.8. However, since we expect a quiet summer, the path of least resistance looks to be up.