Crypto Frontline

BTCUSD (Coinbase)

Risk sentiment got a boost last week after the FED decided to cut interest rates by 50 bps. The market took it as a stimulating sign and figured out that the largest central bank wanted to boost liquidity in order to prevent further deterioration in the labor market.

That favored Bitcoin since we are now seeing the price hovering around the daily 200 SMA + the upper line of the consolidation channel we have discussed for weeks. Despite the decent bounce, the RSI is still not overbought, so there could be more room to the upside.

We believe the probability for a breakout higher has increased, although a consolidation lower during the next few days shouldn’t be ruled out. Buyers are favored because the price is pressuring key resistance at a time when seasonality shifts in favor of bulls.

If the consolidation channel is broken and BTC gets to $70k, we believe more will follow by the end of the year. The $74k and 80K levels will be resistances to watch as buyers will definitely chase the move up. Only if the price stays inside the channel we will keep our neutral stance in place.

ETHUSD (Kraken)

Ether is also posting some bullish signs after breaking above the daily 20 EMA + the break above the $2,500 area. In line with BTC’s performance, risk is improving across the board and for that matter, we believe there is more room to the upside in the upcoming weeks.

Still, pullbacks will occur along the way and because of that, traders need to consider the key levels on the chart. We continue to view the $2,720 – $2,820 as resistance, so some selling interest could emerge there. Breaking above will be a positive development and our next upside target will become $3k + the daily 200 SMA.

On the downside, ETH must hold above $2.5k and the daily 20 EMA. That will suggest buyers are willing to step in on pullbacks to prevent further damage. If that doesn’t happen, you should expect a deeper pullback to $2,300.

BNBUSD (Binance)

The broad-based enthusiasm is confirmed by the price action seen in Binance Coin. The bulls have been in control last week and managed to drive BNB well above the daily 200 SMA, which means the sentiment has now shifted to bullish.

However, we do see resistance around $605, so a pullback shouldn’t be excluded. After all, the coin rose over 30% in 17 days, which is an impressive rally. We are bullish on this token and believe that more upside could unravel by the end of the year, given the positive seasonality.

We would want to see a pullback close to the daily 200 SMA in order to enter the market long at a more attractive price. The orange + blue line and the $550 area should act as solid support. If not, the pullback could extend to $515. Our upside targets are $640 and $700.