Crypto Frontline

Weekly Crypto Analysis May 14-20, 2018

Weekly Crypto Analysis May 14-20, 2018
May 20
10:13 2018


Bitcoin analysis


What we are witnessing is a continuing decline in volatility when it comes to Bitcoin and that is why we have decided to switch to the 4h chart this week. For the past week, the coin had continued to weaken, after finding resistance around the 8700 level. The level had acted as support twice in the past and now sellers not only managed to drive the price below it but also they have managed to keep the upside limited, rejoining the trend after a response from the bulls.

Looking ahead, we could see the price continuing to weaken towards the 7800-7700 area, where we expect buyers to resume. On the upside, if the current bullish consolidation will extend further, the next important resistance to watch will be 8700.


Ethereum analysis


On the 4h chart, Ethereum is consolidating higher, being support by an ascending trend line. We see more than 6 touches of that line, communicating the bulls have been buying the cryptocurrency each time the sellers drove the price lower. As long as the price will remain above the trend line, we maintain a short-term bullish bias. A break below the trend line, followed by a weak response from the buyers will definitely not be a good sign and sellers might be the ones in control then.

Currently, the price action is edging higher, approaching the 711 short-term resistance level. During the past week, sellers had managed to keep the upside limited below that level twice, so buyers could encounter some heavy sellers there. A breakout above the line could open more room towards the 770 resistance level.

On the other hand, a breakout below the trend line could be the main catalyzer for a bigger drop. If the break takes place, we expect the price of Ethereum to fall towards 590 support. We should see the price consolidating there, as the bulls had been very active in the past around the level.


EOS analysis


Probably one of the cryptocurrencies that are expanding its popularity very fast, EOS had been under pressure since the end of April. Judging by the price action, the sellers are heavily in control and could continue so in the near term. For the past week, the price had been consolidating in a range, formed by 11.9 and 13.7.

At the time of writing, the price action is located at the top line of the range, a place where sellers had resumed at the beginning of the week. A breakout above the range could spark fresh buying power and could open potentially open more room towards the 15.4 resistance level.

On the other hand, if the sellers will be able to keep the upside limited, below the 13.7 resistance, a new wave of selling could drive the price towards the bottom line of the range, again.

Looking at the bigger picture, sellers seem to be in control, so be aware of false breaks on the upside.

Briefings about ICOs

One interesting ICO that is currently taking place is BitNautic. The token sale will run for 11 more days. Bitnautic is a decentralized platform, based on Ethereum, which aims to match demand and supply of shipping services. It has a lot of interesting features, like AI-based booking systems. Feel free to study the project in great detail and make your own opinion.

In terms of the ICOs that will take place in the near-term, Luckchemy – an online gambling platform based on the blockchain, and Verv  – a live energy and data protocol are two of them.

Weekly Crypto Analysis May 14-20, 2018 - overview
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