This column will provide our readers a basic update on what they can expect from the leading cryptocurrencies in the upcoming week.
This is a weekly column. For more frequent updates on markets, join Sumnesh’s telegram channel Price Action Trading.
BTC bounced back sharply after giving a weekly close below support mentioned earlier (9075 USDT). It continues to remain range bound now for several months as the volatility indices on BTC hit historic lows.
Nothing changes from what to expect from this week- anticipation of how long can alt season sustain and till when can BTC remain range bound is the only talking point for coming week.
BTC/USDT (Daily Chart)- Range bound
BTC/USDT after giving a weekly close below the support level has bounced back and continues to remain range bound as earlier.
BTC continues its sideways movement for over 2 months now as the volatility indices (it measures the standard deviation of BTC movements on daily basis) hit historic lows. This indicates the lack of momentum in BTC movement and that price may continue to remain sideways until the volatility doesn’t rebound.
The immediate support for BTC lies at 9075 USDT and the resistance level is 9905 USDT.
The structure although weak, continues to remain in an uptrend and hence traders should avoid building short positions until the support is broken.
ETH/BTC (Daily Chart)- Attempting range breakout
ETH/BTC has been trying to breakout of the sideways trend it has been for quite sometime now and has made multiple attempts last week for the same.
ETH has held onto its momentum which it built up at the end of last month and continues to move towards the resistance level. This shows control of bulls at the moment and will confirm breakout only after resistance is taken out on daily basis.
The immediate support for ETH/BTC lies at 0.024630 BTC whereas the immediate resistance levels are around 0.026933 BTC region.
Traders should use pullbacks to build small positions with adequate stop losses and only increase position size when we get daily close above the resistance level mentioned on the chart.
XRP/BTC (Daily Chart)- Testing Resistance
XRP/BTC price increased dramatically last week after prolonged downtrend. The confirmation of trend change is still awaited though.
XRP showed confidence to bulls as the price increased by almost fifteen percent in last couple of weeks. The coin is now retesting its previous resistance and is yet to provide breakout confirmation after trend change.
The immediate resistance levels are around 0.00002220 BTC for the XRP/BTC pair.
The price needs to form at least one higher high and higher low to confirm trend change into uptrend. This has not happened yet and traders should wait for breakout after trend change to build positions.
ONT/BTC (Daily Chart)- Follow through of the breakout
ONT/BTC price has increased by over 16% since our last week’s update after a successful breakout from the previous resistance level.
ONT after breaking out from 0.0000652 BTC surged towards the next resistance levels placed at 0.0000714 BTC, after a brief pullback. Interestingly, the cryptocurrency broke through that resistance in one go itself. It gave an ideal pullback for re-entry yesterday and looks like bulls have strong control on the prices at the moment.
The immediate support lies at 0.0000714 BTC whereas the resistance levels are around 0.0000819 BTC.
Traders may slowly build long positions with adequate stop losses as long as the support is held.
FET/BTC (Daily Chart)- Breakout
FET/BTC has been in strong uptrend ever since last week of May month and has recently shown surge in volumes as well.
FET gave a strong breakout yesterday and this made it break through two resistances back to back as prices surge higher amidst the ongoing alt season.
The immediate support lies at 0.00000456 BTC whereas the resistance levels are around 0.00000549 BTC.
Traders should wait for pullback to the support region for adequate entry levels and proceed with adequate stop loss in that case.
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.