Crypto Frontline

Weekly Crypto Analysis June 28 – July 4, 2021

Weekly Crypto Analysis June 28 – July 4, 2021
June 27
12:08 2021

BTCUSD (Coinbase)

BTCUSD technical analysis

Source: TradingView

The Bitcoin sentiment continued to deteriorate at the beginning of the past week, given the price breached below $30,000, erasing all gains for the year. Even though the key support area highlighted in our chart is still holding, we don’t have a strong confirmation for any change in the order flow.

Buyers should continue to monitor developments and an early sign would be a break above the daily 20 EMA. In that case, we could expect to see a rebound back towards the $40,000 resistance area, where the upside had been capped in mid-June.

However, due to month-end uncertainty, the Bitcoin price action could continue to hover around the lows, leaving the downside open in case sharp selling will resume. The RSI is still in a structural decline, which makes us believe the sellers continue to be the ones in control. A push higher towards overbought levels should also be treated as a sign of improved sentiment.

ETHUSD (Kraken)

ETHUSD technical analysis

Source: TradingView

In line with Bitcoin’s performance, Ether continues to fall, now trading below the key support area highlighted for a few weeks. The 4h chart 20 EMA is treated as resistance and each minor pullback is facing increased selling pressure, which communicates the bearish trend had not ended yet.

We suspect ETH will continue to weaken during the following days, and the next likely targets are $1,550 or $1,300 if the $1,700 zone will fail to provide support. This could be part of a larger A-B-C type formation and now we’re in the middle of the C-wave.

Our short-term market view will change only if the price breaks above the 20 EMA and starts treating it as support. In that scenario, expect ETH to edge higher towards the 200 SMA, where stronger resistance is expected.

The overall appetite for crypto buying is subdued, as headlines related to the China crackdown and a new billion-dollar fraud in South Africa dominate the online media.

DOGEUSD (Bittrex)

DOGEUSD technical analysis

Source: TradingView

Dogecoin was one of the biggest bubbles in the crypto history, after managing to reach 74 cents in early May. Pushed higher by FOMO buying and exuberance, the trend was no longer supported and market participants started dumping their DOGE tokens, whipping out more than 70% of the gains by the time of writing.

A key area on the chart is located around 15 cents, which is where the current pullback had started. However, we don’t think this is the start of a major move higher and sellers will continue to pressure the price lower.

The burst of the bubble does not show any signs of abating and we suspect DOGE will head back to 5 cents or even lower since it is still a cryptocurrency with no future prospects. Sell-on-rips is the name of the game for the time being, as the euphoria around this crypto had vanished completely and buyers are stumbling to find a way out without damaging their finances.

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment