Crypto Frontline

Weekly Crypto Analysis June 15-21, 2020

Weekly Crypto Analysis June 15-21, 2020
June 14
06:44 2020

BTCUSD Coinbase

BTCUSD technical analysis
Source: tradingview.com

Following the false break above the $10,000 area, Bitcoin had remained subdued, as we’ve expected in our last weekly crypto analysis. It tested again the key area and then resumed selling, almost touching the $9,000 mark. The support area around $9,200-$9,400 had capped the downside so far, but the bullish reaction had rather been weak.

The price sits around the 4h chart 200 moving average, unable to break higher. If selling resumes, it could be a bad sign for sellers since the highlighted support could break. That will mean Bitcoin is likely headed towards $8,800 or $8,400, two areas where the price action had reacted in the recent past.

Continuing to break above the 4h chart 200 MA could put Bitcoin on its track for a new retest of the $10,000 area. That will be a bullish development, given it could signal buyers are squeezing the price action towards the key level. Expect a breakout higher, if this scenario will unfold.

ETHUSD Kraken

ETHUSD technical analysis
Source: tradingview.com

Ether had been quietly moving inside the range we’ve mentioned a week ago. The price edged higher to the key $250 level and then resumed selling, dropping to the bottom line of the range. At the time of writing, ETH is consolidating in the middle of the range, which makes the next direction uncertain.

Will the selling resume and the bottom of the range will be retested again? In that case, the risk of a downside breakout increases, and the 4h chart 200 MA will be the next key area to watch. Also, buyers should watch how the price will perform around $217.

In case the price will continue on its way up, the $250 level will be the next key level to watch. Sellers could reenter the market around it, as they’ve already done several times in the past few weeks. Conservative traders should wait until the price will reach either side of the range, before deciding to make a move, due to the short-term price uncertainty.

ADAUSA Binance

ADAUSD technical analysis
Source: tradingview.com

We did not cover Cardano for almost two months, and in the meantime, the price action not only headed towards a previously mentioned trend line, but it also broke impulsively above it. The good news for buyers is that the price action broke above the 7.2 cents as well, and it is now consolidating above it. In the near term, buyers will treat it as support, unless a breakout lower occurs.

If the 7.2 cents support level will hold, we suspect Cardano might build-up for a new leg higher towards the key 10 cents area. That level had not been reached since a year ago and will mean the bullish outlook for Cardano had improved considerably. Bear in mind that the move towards 10 cents might be bumpy, considering cryptocurrencies seem to be volatile again. Watch carefully how technicals play out when the price reaches them. The price action development since mid-March is encouraging and suggests more upside may lie ahead for Cardano.

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