Possible Trading Paths for the Top 6 Cryptocurrencies: July 24, 2018Jul 24, 2018, 1:52PM
Bitcoin performs well following a surge of good news, no doubt boosting the top 6 cryptocurrencies, BTC, BCH, ETH, LTC, XRP and EOS
The new week has seen some of the cryptos posting gains on the back of the good performance by Bitcoin. This would no doubt convince some of those traders who have been sitting on the fence to jump into the market on the back of making quick gains.
There was some positive news for Bitcoin on several fronts. First, the Supreme Court in India has deferred judgment on the issue of regulation of cryptocurrencies in India. Second, some financial giants and major banks have begun to make moves to offer cryptocurrency-backed assets to their clients, even as the US Securities and Exchange Commission (SEC) looks to approve another Bitcoin-based ETF. Third, there has been some positive regulatory news concerning Bitcoin from around the world. These news events no doubt brought some cheer for the top 6 cryptocurrencies, which have all struggled to replicate their performances of 2017.
As we head into a new week of trading, what can we expect from the top 6 cryptocurrencies?
After several successive tests of the $7,500 resistance area, the BTC/USD pair has been able to push beyond this price barrier and is now trading at just below the $8,000 mark.
Still, the breakout has to be confirmed if the daily candle for Tuesday, July 24, 2018, is able to close above this price. If it does, we will have to wait to see if the $8,000 psychological resistance will hold or not. If the price is able to break above this level, then we should see BTC making a slow push towards the next resistance seen previously in mid-March at the $9,000 mark, and then possibly the next major resistance at $10,000.
As we wait for price action to either sustain the upside retracement from the long-term downtrend or to be stopped at the resistance areas identified, we can shift focus to the intraday charts for direction on how to day trade the situation.
Prices are presently inching towards the R2 resistance pivot, having broken the R1 pivot on strong buying pressure. It is possible that the price action will attempt a return move to the broken R1 pivot at $7,921. If buying sentiment continues and R1 provides support, then it would be rational to go along with this pivot and chase the price to the R2 pivot line at $8,123. If the price bar/candle is able to close above the R2 pivot on this move, we will see further upside to the R3 pivot at the $8,635 mark. If price fails to break the R2 pivot, then it is possible that prices may range between R1 and R2 for the day. Nevertheless, the buying bias is strong and it is possible that prices may bounce at R1 to provide further upside impetus for the day.
It looks as though the ETH/USD pair, which has so far failed to fulfill its upside potential, looks set to do so on the bullish crypto sentiment this week. As identified in our last analysis, prices are presently in an upper channel on the daily chart, which also shows that the lower trendline within the channel has been tested severally and has held firm.
In the long-term outlook, this line will provide good support for possible bounce trades. We can see that the candle for today is already in bullish mode, with strong buying pressure.
This sentiment has also reflected on the intraday charts. A look at the hourly charts will show that after being stuck in a range for at least one week, ETH was able to gather some bullish momentum after breaking the slanting trendline that served as resistance from the time of our last analysis on Sunday till now. However, the upside move could not cross above the R2 pivot and prices have retreated.
The outlook for intraday trading for ETH is to wait for a possible retreat to the R1 level of $462. This price level also coincides with previous long-term support seen at points A, B, C and D on the chart shown above. This makes the R1 a good area to initiate long trades for the day and possibly for other days this week.
The long-term focus for Ripple remains unchanged. Upside continues to be limited by the descending trendline, with a further push against the support price of $0.45.
Intraday trading volumes continue to be thin and it is expected that Ripple will continue to trade within this range against the USD heading into the latter half of the week. Intraday trading will most likely be limited to the central pivot and R1.
The BCH/USD pair has turned up an interesting setup on the daily chart. Presently, we have what looks like a double bottom, which has seen an upside break of the neckline. This upside move is in further confirmation of the short-term bullishness that has been witnessed at the start of the week for the top cryptocurrencies. But the upside move is going to have a stern test of its resolve at the key resistance which has been identified.
This resistance level, located at $908, is an extension of the previous broken support line which had been tested several times in June 2018 and was able to hold firm. On a long-term basis, then, the price of BCH/USD will have to break above this resistance. It is important to note that the height of the double bottom also corresponds to the distance between the neckline and the $908 resistance. So it is likely that many exit stops for long entries made at the break of the neckline will start to be activated at this point, which could strengthen the resistance and cause BCH/USD prices to pause at that level.
On an intraday basis, prices have made a strong push from the central pivot and have broken the R1 level. Prices are presently making a return move to the broken R1 level, which is setting up the possibility of bounce trades at that level. A successful bounce on R1 will open the door for a push to R2 at $908 to $916, where prices are expected to stall at that key resistance area.
It should be noted that this pair is seeing a lot of volatility and traders need to be careful of how they set their orders.
Our analysis revealed that LTC/USD found itself in an upward price channel on the daily chart. The price action has effectively broken above the channel line and made an upward move, on the back of Bitcoin’s bullish run.
The hourly chart shows that price action is pushing hard for a breach of the upper channel trendline. If there is a closing penetration of this line, this will set up the possibility of prices pushing all the way to the R2 area at $88.87. If the bullish momentum for the day is able to cause prices to break above R2, then a push to R3 is also likely.
Buyers must be aware of the key resistance at the $102 area. Even if prices were to break above the channel, this area would be one to watch for a pause in upward momentum.
The daily chart for the EOS/USD shows that the descending upper trendline has continued to limit any sharp upside moves. Get the latest cryptocurrency trading strategies and ideas for Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple and EOS for intraday trades and swing trades.
In the medium-term, we see prices continuing to trade within the confines of the symmetrical triangle. There has to be some fundamental push for prices to break out of the tight range.
Intraday trading is still limited to the range between the central pivot and R1. Trading volumes are thin, as traders are still awaiting the completion of the mainnet migration to make any trend-defining moves.
Until our paths meet again, trade safe and remember to stick to money management rules.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.