BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, XLM, TRX: Price Analysis 07/06
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Market data is provided by the HitBTC exchange.
The white paper for Facebook’s stablecoin might be released as early as June 18, according to multiple sources. This has been an eagerly awaited project as the social media giant along with its sister companies WhatsApp and Instagram can reach millions of customers.
In a recent interview, Laura McCracken, Facebook’s Head of Financial Services and Payment Partnerships for Northern Europe, confirmed that “the value of Facebook Coin will be secured with a basket of fiat currencies.” Over 100 people are working on the project with about 40 more openings yet to be filled.
Igor Sechin, head of Russian oil company Rosneft has said that Facebook’s stablecoin might also be used to pay for the purchase of crude oil in the future. While Venezuela had previously attempted to link crude oil and cryptocurrency, its project failed due to various reasons. But if large producers like Russia start accepting cryptocurrency payments for their oil, it will give a big boost to the sector. With every passing day, the fundamentals of the sector are improving.
Will prices respond positively to these developments? Let us find out.
BTC/USD
Bitcoin (BTC) has been trading between the 20-day EMA and the horizontal support of $7,413.46 for the past two days. Currently, the 20-day EMA is flat and the RSI is close to 50. This points to a consolidation in the near term.
The chart is also showing the possibility of a head and shoulders pattern formation. Currently, the BTC/USD pair might be forming the right shoulder. The pattern will complete on a breakdown of the neckline. This breakdown has a target objective of $5,371.12. However, a head and shoulders pattern with an upward sloping neckline is less reliable. Hence, we will not become overly negative but will remain cautious.
This pattern will be invalidated if the pair breaks out of the head at $9,053.12. If the bulls sustain the price above the 20-day EMA, a retest of the highs at $9,053.12 is likely. The failure of a negative pattern is a bullish sign. Hence, if the bulls sustain the price above $9,053.12, a quick rally to $10,000 is probable.
ETH/USD
Ethereum (ETH) is currently range bound between $225.39 on the downside and $280 on the upside. The 20-day EMA is flat and the RSI is just above the midpoint. This suggests that the cryptocurrency might consolidate for the next few days.
A breakdown of $225.39 and the 50-day SMA can sink the ETH/USD pair to $167.20. On the other hand, if the bulls propel the pair above the resistance of the range at $280, it can move up to $322.06, which is likely to act as a stiff resistance.
The best way to trade a range is to buy closer to the support and sell near the resistance. Therefore, we will wait for the pair to bounce from $225.39 before suggesting fresh long positions.
XRP/USD
Ripple (XRP) has formed a symmetrical triangle. A breakout of the overhead resistance at $0.45 and the resistance line of the triangle has a target objective of $0.57259. If this level is crossed, the rally can extend to $0.62.
Conversely, if the bears sink the XRP/USD pair below the support line of the triangle, it gives a pattern target of $0.26741. However, the pair has strong support at $0.35660 and below it at $0.27795.
The 20-day EMA is gradually creeping up and the RSI is above 50, which shows that the bulls have a slight advantage. Therefore, traders can retain the stop loss on the remaining long position at $0.35. We will trail the stops higher within the next few days.
LTC/USD
Litecoin (LTC) has bounced smartly from the 20-day EMA. This is a positive sign as it confirms that bulls are defending the first line of support and are not waiting for lower levels to buy.
The bulls will now try to push the LTC/USD pair above the overhead resistance zone of $121.9018–$127.6180. If successful, the next target to watch is $158.91. There are minor resistances at $140 and $147. If the pair struggles at any level, we will recommend closing the remaining long position. Until then, stop losses can be maintained at $90. If we get an opportunity in the next few days, we will trail the stops higher to $98.
We are closely watching the negative divergence on the RSI, which is the only bearish formation on the chart. Our bullish view will be invalidated if the cryptocurrency reverses direction from the overhead resistance zone and plummets below $91.
BCH/USD
Bitcoin Cash (BCH) continues to trade inside the ascending channel. The cryptocurrency is finding support closer to $360 but the bulls are struggling to sustain the price above the 20-day EMA. This shows a lack of demand at higher levels.
The 20-day EMA is flattening out and the RSI is close to the center. This suggests a balance between the bulls and the bears. If the BCH/USD pair sustains above the 20-day EMA, the bulls will try to push it towards the resistance line of the channel.
On the contrary, if the pair plunges below $360, it can drop to the support line of the channel. This is a critical level to watch. A breakdown of the channel will tilt the trend in favor of the bears. Currently, we do not find any reliable buy setups, hence, we remain neutral on the cryptocurrency.
EOS/USD
EOS has been trading between the 50-day SMA and the 20-day EMA for the past three days. On the upside, the bulls are likely to face stiff resistance at the 20-day EMA and above it at $6.8299.
If the EOS/USD pair plummets below the 50-day SMA, it can decline to the support line of the ascending channel. This is a strong support as the bulls have repeatedly defended this line in the past few months. A breakdown of the channel will signal a deeper correction to $4.4930.
On the other hand, if the bulls propel the price above $6.8299, a rally to the resistance line of the channel and above it to $8.6503 is possible. Traders can wait for a close (UTC time frame) above $6.8299 to buy with a stop loss of $5.80. If the price breaks out with force and closes (UTC time frame) near the resistance line of the ascending channel, traders should wait for a pullback to enter long positions. We do not suggest chasing the price higher.
BNB/USD
Binance Coin (BNB) broke down of the 20-day EMA on June 4 but the price did not drop to the 50-day SMA according to our expectation. It rebounded sharply from $28.0639659. This is a positive sign. Currently, the price is above the 20-day EMA. If the bulls sustain this level, a rally to $36 is probable.
Conversely, if the BNB/USD pair fails to sustain above the 20-day EMA, the bears will again attempt to sink it to the 50-day SMA. This is a strong support as it has not been breached decisively barring on May 9. Hence, a breakdown of this level will signal a deeper correction and a comeback of the bears. We will watch for a couple of days and suggest long positions if we find a trade with good risk-to-reward ratio.
BSV/USD
Bitcoin SV (BSV) plunged on June 6 but found support close to the 38.2% Fibonacci retracement level of the recent rally. This is the second time bulls have defended this level. It now becomes an important level to watch on the downside.
The bounce from $172.910 suggests strong buying on dips. If the bulls build up on the rebound, the BSV/USD pair can move up to $240, which might act as a resistance. A breakout of the $240–$254 overhead resistance zone will resume the uptrend that can carry the cryptocurrency to $307.789 and above it to $340.248.
Our assumption will be negated if the pair turns around and plummets below $172.910. Below this level, the fall can extend to $152.015, which is the 50% retracement level of the recent rally. As the risk is high, we are not proposing a trade in it.
XLM/USD
Stellar (XLM) is range bound between $0.11507853 and $0.14861760. It found support at the bottom of the range on June 4 and 6. If the price sustains above the 20-day EMA, the bulls will try to push it to the resistance of the range at $0.14861760. A breakout and close (UTC time frame) above the range will complete an inverse head and shoulders pattern, which has a target objective of $0.22466773. We will wait for the breakout before recommending a long position.
On the other hand, if the XLM/USD pair fails to sustain above the 20-day EMA, the bears will again try to sink it below the support at $0.11507853. A breakdown of this critical support will be a negative sign and can result in a deeper fall to $0.08558676.
TRX/USD
Tron (TRX) is trading inside an ascending channel. The price bounced off the support line of the channel on June 4 and 6. This is a positive sign. However, the dip on June 6 might have hit the stops on the long positions if the traders had purchased on May 15.
The bulls will now attempt to push the price back to the overhead resistance of $0.040. If this level is scaled, the TRX/USD pair can move up to $0.050. Our bullish view will be invalidated if the pair turns down and breaks below the support line of the channel. Such a move can plunge the cryptocurrency to the critical support of $0.02815521.
Market data is provided by the HitBTC exchange.