Crypto Frontline

BTCUSD (Coinbase)

Last week was very bullish for Bitcoin since the price broke above $100k and it’s now attempting to exceed $106k. That happens to be one of our short-term resistance levels, but as things stand right now, we might witness a new ATH soon. 

Risk sentiment took another boost today when the US and China agreed to lower tariffs for 90 days, providing a breathing room for markets. Even though the RSI points to overbought conditions, leaving BTC vulnerable to pullbacks, we believe this market still has legs and could continue higher. 

Attention will probably shift to $110k, but be aware this is an emotional market and in the past, breakouts above prior ATHs were met with strong buying. It could happen again, although it is not 100% guaranteed. We remain bullish as long as the price stays above the daily 20 EMA and the daily 200 SMA. Both should act as support in the face of sharper pullbacks. 

Only a strong breakout below $90.6k will negate our current bullish stance. Sellers will have to cover a lot of ground to get there.

ETHUSD (Kraken)

Ether managed to outperform Bitcoin by a large margin last week. We were pointing out in our analysis that a break above a consolidation will encourage buyers to step in. The move up took us by surprise since it exceeded all of our resistance zones. 

Currently, the price is overbought but continues to edge up towards the 200 SMA. Above that orange line, $2,800 and $3,000 will follow as key resistance levels. As we move forward, bullish momentum should ease a bit, given overbought conditions suggested by the RSI trading above 80 on the daily chart.

Such an impulsive move confirms buyers have entered aggressively, so from now on, dips should be buying opportunities. We view $2,350 as a key support area to watch if weakness emerges. Below it, $2,150 and $2,100 are another cluster of bids that should be supportive in the short term. 

TRXUSD (Bitfinex)

Tron is the 3rd coin we want to talk about today because there is a nice bullish parabolic structure easily noticeable on the daily chart. Such price action formations are very powerful and generally lead to significant gains. 

The price is hovering around the 27 cents resistance, but the series of higher lows and higher highs suggests a favorable positioning for buyers. We expect dips to be bought and TRX to continue up into the 30 cents resistance. Another level to watch is 34 cents, in case the market manages to overextend.

This scenario is possible considering RSI is not yet overbought in this case. Basically, the market has been piling into Bitcoin and Ether, leaving altcoins more room to catch up. As long as there are no major risk headlines entering the market, traders should shift attention to the altcoins space, where they can find cheap tokens like TRX. Selling into the daily 20 EMA would be a great opportunity to get long here.