Crypto Frontline

BTCUSD (Coinbase)

Bitcoin failed to hold above $110k and we are now seeing the sellers slowly gaining traction. The price seems unable to hold above the daily 20 EMA either, suggesting there is not enough buying interest at this point to turn the market higher.

For that reason, we think there is room for more selling ahead. Trade tensions are increasing again and that could further incentivize profit-taking. If selling does continue, the first major support area to watch is $100k. 

If the price action doesn’t show signs of bottoming there, attention will shift lower to $95k. That should be a stronger support, mainly because the daily 200 SMA is located there as well. Bitcoin selling off right after reaching a new all-time high is not an encouraging sign, since usually, follow-through buying is the most likely scenario. 

Still, we can’t suggest this is the start of a double top formation. We will have to see strong selling below the 200 SMA on the daily chart to start considering that option. At this point, the move lower can be labeled as a correction within a bullish trend. 

ETHUSD (Kraken)

We’ve seen a third failed attempt to break higher in Ether and that shows buying pressure is not strong enough to extend the leg up. The $2700 area + the daily 200 SMA turns out to be heavy resistance, so until we see a break and hold above it, we remain neutral to bearish short-term. 

At the time of writing, the market is testing the daily 20 EMA, but the same thing happened during the last 2 consecutive days and the bullish reaction has been weak. Combined with BTC weakness, Ether could drop further this week, until finding new bulls probably around $2,100 – $2,000. That’s an important support and swing area traders should watch. 

To the upside, we need to see buyers driving the price above last week’s high. That will be a sign of continuation and will suggest Ether is poised for a $3,000 retest. 

XRPUSD (Kraken)

XRP seems to be slowly forming a topping pattern and we say that because the price was not only unable to reach $3, but it also now trades below the daily 200 SMA. That’s not an encouraging sign for buyers and we could see further selling during the next couple of weeks. 

A short-term support is $2 and if that doesn’t hold, we suspect an extension towards $1.6 – $1.4 would become increasingly likely. The market was enthusiastic for a while, since the current White House administration wants to favor crypto projects based in the USA. 

However, the market wants further clues that’s the direction things are going. The announcements of a state-owned crypto fund or major regulatory breakthroughs will be needed to spur a new round of heavy buying in XRP.  Until that happens, we remain cautiously bearish, since traders will be inclined to take some profits off the table after an impressive run higher.