Bitcoin
Source: dailyfx.com
Since our last weekly crypto analysis, the Bitcoin price had weakened significantly. We were expecting sellers to resume heavily around 8,550-8,840 but actually, the price started to dip below it. It seems like the main reason had been the rejection by the SEC of a new Bitcoin ETF. The market had been optimistic that we will see more Bitcoin-related instruments in the near term, but now those hopes had vanished.
Because of that, a new wave of selling emerged, driving the price around 15% lower. From our point of view, the 6,800 area will be of key importance, representing the neckline of an inverted head and shoulders we have talked about in the past.
Judging by the current price action, the odds of that area being breached are high, so we expect the price of Bitcoin to continue to dip during the month of August.
Bears wanting to get short can wait for a pullback towards 7,200 area, where sellers could start a new leg down.
Ethereum
Source: dailyfx.com
Pressured by the Bitcoin fall, Ethereum had breached the short-term ascending price channel and reached the 407 support level, exactly how we have anticipated in our last weekly analysis. Although we have seen some rejection there, it seems like the sellers continue to pressure the price.
We expect the price of Ethereum to break lower and it will probably head towards the current 2018 low, located around 361 level. A strong bull run had started there, so we expect interest from the buy side to emerge.
On the upside, things should be limited, sellers expected to rejoin the trend on any bullish pullback. The sentiment is on the negative side and buying at this point won’t be a good decision.
As long as there are no prospects of institutional money pouring into the cryptocurrency markets, the bearish trend will continue to advance lower.
EOS
Source: dailyfx.com
Since the end of June, EOS had been stuck in a range between 6.86 and 9.34. For more than a month the price did not have any directional bias, but now due to the current negative sentiment in the cryptocurrency market, the bottom line of the range is again under pressure.
We can easily see that there are more touches off the bottom line, and only two off the top line, suggesting that the bears are slightly stronger than the bulls.
If the overall negative market sentiment will continue, we suspect the EOS price will breach lower and head towards 5.1 area, where a good support level lies.
If the price will continue to trade inside the range, a new leg towards the upward line is the most likely scenario.
Briefings about ICOs
According to icoalert.com, the FOAM Protocol is an ICO project that is currently active and will run until August 6th. It represents a permissionless and autonomous network of radio beacons that can offer location services.
In terms of upcoming ICOs, Defund Project is a decentralized investment fund in the cryptocurrency market and the project will start in a few days on the 7th of August.
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