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 price rebounded back towards retesting the resistance last week, after a failed breakout earlier. ETH followed suit and is close to its monthly high made at the starting of the month but XRP is not showing similar strength and is struggling to trade above support.
The upcoming week will show whether BTC is able to break the resistance again and if alts will also rise further along with it or loose their value in satoshis.
Contents
BTC/USDT (Daily Chart)- May retest resistance
BTC/USDT failed to breakout even after last week’s attempt and is retrying yet again. Several previous attempts have failed to break past the resistance level mentioned in earlier posts and the structure on daily charts doesn’t seem as strong as a few weeks back.
The lows made in the past week have barely managed to hold the uptrend as the previous swing low was retested but the good news for the bulls is that the uptrend is still intact. The bulls need to reclaim the levels above the resistance with a strong daily close to sustain the upward movement of price.
The immediate support for BTC lies at 10854 USDT and the resistance level is 11825 USDT.
Traders should build long positions only after daily close above the resistance level and wait for confirmation. Short positions must be strictly initiated on a daily close below support level.
ETH/BTC (Daily Chart)- Reversal from support
ETH/BTC price increased and is now closer to its monthly high after briefly going below the support level twice last week. It remains to be seen if the price can cross the resistance level and give a higher high in the process.
ETH has managed to continue its uptrend for over three months now with healthy pullbacks even as BTC went sideways and rose further too. ETH not only retained its value in satoshis during BTC’s rise but also increased in price itself. This shows how the uptrend in ETH/BTC is more stronger than BTC/USDT, at least for now.
The immediate support for ETH/BTC lies at 0.033921 BTC whereas the immediate resistance levels are around 0.03826 BTC region.
Traders should slowly build long positions with adequate stop losses once the resistance is broken on daily chart.
XRP/BTC (Daily Chart)- May restart downtrend
XRP/BTC price has been declining since the start of this month and the overall structure on daily chart looks weak along with falling volumes.
XRP price rose dramatically without any pullback in the last week of July month and reversed from the resistance level shared in previous posts. Ever since the start of this month, price has been steadily declining and recently made a lower low. This is noteworthy as the price had also made a lower high around the middle of the month. Hence, the bears seem to be having strong control on the prices of XRP as of now.
The immediate support for XRP/BTC lies at 0.00002220 BTC whereas the immediate resistance levels are around 0.000024 BTC region.
Traders should avoid building long positions until a higher high and higher low is formed on daily charts. Risk taking traders may short below the support level but the position size should be smaller with strict stop loss in place.
NEO/BTC (Daily Chart)- Pullback after breakout
NEO/BTC has broken past this particular resistance level after more than one year and the price has been on an uptrend since last month’s end.
The price rose more than 15 percent day before yesterday and was accompanied with strong volumes on the daily chart. The price has now pulled back just short of the resistance level and may retest the breakout level again.
The immediate support for NEO/BTC lies at 0.001672 BTC whereas the immediate resistance levels are around 0.001998 BTC region.
Traders should wait for pullback near support region to enter long positions, unless there is a daily close below the support level mentioned on the chart.
IOTX/BTC (Daily Chart)- Breakout
IOTX/BTC is also breaking out of this resistance level after more than an year, similar to NEO/BTC. This is accompanied by slow increase in volumes for a few months now.
IOTX price has been rising since the month of May and has managed to maintain uptrend ever since. The daily chart has shown higher highs and higher lows consistently for sometime now and the bulls seem to have gained control on this cryptocurrency for now.
The immediate support for IOTX/BTC lies at 0.00000089 BTC whereas the immediate resistance levels are around 0.00000141 BTC region.
Traders may take long positions near support region and keep trailing stop losses as per their risk appetite.
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.
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