Starting today, Coin Crunch India will publish a crypto markets weekly trading overview on every Monday evening. This column will provide our readers a basic update on what they can expect from the leading cryptocurrencies in the upcoming week. Our in house analyst Sumnesh will not just provide updates on top three coins but also share chart updates for potential trades on other crypto assets. The analysis is based on simple Price Action charting.
Last few weeks have been relatively quiet for crypto markets as BTC remains range bound between $8,500-$10,100, after seeing a massive one day fall of close to 40% on March 12 amidst world economy feeling jitters of the coronavirus pandemic. This also coincided with the once-in-four years major event of BTC halving which has been historically followed by steady price increase.
The next few weeks are crucial as BTC tries to break past the psychological barrier of $10,000- a level it has failed to cross thrice in the past 2-3 weeks. Other cryptocurrencies are expected to follow suit if BTC trades above the current levels.
BTC/USDT (Daily Chart)- steady uptrend
BTC/USDT pair has turned bullish on the daily time-frame ever since the big fall before the halving, more than doubling in price from the low made on March 12.
The largest cryptocurrency by market cap has continued its uptrend making higher highs and higher lows (marked through circles in the chart) even as it failed to breakout past the $10,000 level. BTC has seen pullbacks in recent weeks and has been slightly sideways between a $1500 range.
The immediate support for BTC lies at 9074 USDT whereas the immediate resistance levels are across 9905 USDT.
If BTC successfully breaks the resistance area and trades above it as many anticipate, the price may further increase to 10850 USDT where it is likely to face some amount of selling. On the other hand, any daily close below 9075 on the daily chart might threaten the uptrend for BTC as any low below the current higher low (placed at 8642 USDT) will result in BTC changing its trend, which is also alongside the larger support area of 8490 USDT.
Traders may want to find opportunities to buy on dips near the support zone or wait for breakout on the upside to ride the trend.
ETH/BTC (Daily Chart)- sideways
ETH/BTC has been trading within a wide trading range on the daily timeframe even as the USDT pair of the second largest crypto by market cap rises steadily over the weeks
ETH has been range bound between 0.02-0.027 BTC price since the starting of the month of February. It has tried to break the range on the downside twice but bulls have held onto the lows both the times not allowing bears to push the prices any lower. This current price rise within the range is a rebound from the lows as ETH looks like it might test the highs of the range again. It has been forming lower highs within the range so far but the lows are almost at the same levels giving bulls some hope for breakout of the range in coming weeks.
The immediate support for ETH/BTC lies at 0.024630 BTC whereas the immediate resistance levels are around 0.026933 BTC region.
Any high above the previous swing high (currently placed at 0.026028 BTC) will lead to a change of trend for ETH/BTC and may lead to prices rising further towards the resistance zone. Although the prices have been holding well above the support but any daily close below it can push the prices lower to a bigger support area of 0.022512 BTC where it may see some buying happening.
Traders may want to wait for a clear breakout of previous swing highs for further conviction in the uptrend.
XRP/BTC (Daily Chart)- downtrend
XRP/BTC has been on a downtrend ever since October, 2019 as one of the most popular cryptocurrency continues to make lower highs and lower lows on its way down as it nears its all time lows in satoshis.
XRP continues to see selling pressure in a steady downtrend (marked through circles) even as the USDT pair goes flat and sideways in the past month or so. The lack of buying pressure with stagnant volumes continues to remain a point of concern for bulls and they need to reclaim the levels above the previous swing high (currently placed at 0.00002223 BTC) for any resumption of uptrend.
The immediate resistance levels are around 0.00002220 BTC for the XRP/BTC pair.
If there is a daily close above these levels in the coming weeks, the price may rise further to 0.000024 BTC which is a strong selling or resistance area. There are no further support areas as such for this pair as it’s already broken all of them and trading below it currently.
Traders may want to wait for the pair to reverse its trend and give a breakout above resistance zone before planning to enter.
TRX/BTC (Daily Chart)- Breakout
TRX/BTC was in a downtrend since the start of the month of February and had taken down multiple support levels before finally forming a bottom near mid May.
TRX finally confirmed a trend change by forming higher lows after several months (highlighted through circles) and recently gave confirmation by forming higher highs as well. TRX/BTC pair has taken out the resistance level yesterday itself and has seen an increase in volumes as well.
The immediate resistance turned support lies at 0.00000177 BTC whereas the resistance levels are around 0.000002 BTC.
If the cryptocurrency is able to break through the resistance levels mentioned above, the price may rise further by another 10% before witnessing selling at higher levels. On the downside, breaking of 0.00000177 BTC support may lead to retracement towards previous support levels placed around 0.00000168 BTC.
Traders may want to wait for pullback towards the support zone before making any buying decisions with adequate stop losses.
This was the weekly column, for daily updates on markets, you can join Sumesh’s telegram channel Price Action Charts
Disclaimer: The views and opinions expressed above are solely for educational purposes and should not be taken as investment or trading recommendations. Readers are advised to do their own research and due diligence before making any investment or trading decision.