Is it time to make a toast and celebrate a crypto recovery? I don’t think we are quite there yet. Even as Bitcoin spearheads this resurgence, clearing key buy triggers and resistance lines, some as Ethereum, EOS, and IOTA are still underperforming. All these coins have been lackluster, to say the least, and in that case, our previous trade plan mostly holds true.
Bitcoin (BTC) Technical Analysis
In the fast moving world of cryptocurrency trading and investment, a moment of indecision can be disastrous. It’s what India is finding itself in at the moment.
Yes, the government thinks cryptocurrencies are here to stay but their fiat generation wing, the RBI while working closely with the Supreme Court maintained their stand on cryptocurrencies effectively banning banks under their watch from dealing with crypto exchanges. The result has seen a boom in underground Bitcoin peer to peer network making it even harder for the government to reign in, regulate and even tax investors and earn revenue as a result.
#India‘s Supreme Court will hold a hearing regarding the state of the #cryptocurrencies in the country, it’s a date for the $crypto industry that has been suppressed by the Reserve Bank #RBI ban on all banks dealings with $crypto-related businesses. $nCash https://t.co/twcSQEFzAU
— Guardian ¯_(ツ)_/¯ (@withego) July 19, 2018
This week though, encouraging news was that the government would take the US stance and declare cryptocurrencies as commodities subject to regulation and taxation. That is overly positive and it actually gives the new task force time to draft relevant framework for regulation purposes. At the moment, we wait until Friday, July 20 when the Supreme Court declares their official ruling on whether the RBI directive would be enforced or if there will be some concessions.
Back to price action and after gaining a massive 14 percent in the last week, Bitcoin is trading above our buy triggers. This means our buys are now live but with the depreciation we say yesterday, we expect this momentum to wear off a little bit. So, in line with that, our potential buy zone lies in between $7,000 and $7,300. After wards, stops would be at $7,000 with first bull targets at $10,000 as our previous trade plan dictates.
Ethereum (ETH) Technical Analysis
Twitter is no doubt a leading social media platform preferred mostly by crypto developers and influencers. But there is one big problem: Scammers are running amok opening look alike, fake accounts and ruining the party.
It is so bad that Vitalik Buterin, the founder of Ethereum had to change his name to wade off scam bots asking people to send ETH. To curb this, Twitter has been asked to be “more pro-active” and the social media giant is now on a cleaning spree deleting more than 70 million accounts according to sources.
I do wish @elonmusk‘s first tweet about ethereum was about the tech rather than the twitter scambots……..@jack help us please? Or someone from the ETH community make a layer 2 scam filtering solution, please? https://t.co/biVRshZmne
— Vitalik “Not giving away ETH” Buterin (@VitalikButerin) July 9, 2018
Vitalik on his part reached out to Elon Musk, a victim of these scammers, saying developers should come up with some sort of a filter to block these fake accounts.
Even as Bitcoin and Stellar register double digit gains, our ETH buy triggers in line with our previous ETH technical analysis are yet to be triggered and we remain neutral. But it’s even worse because sellers seem to be getting back and driving prices lower. In my observation, this is normal and still, I expect ETH to find support at around $420 to $450.
Ideally, though, patience should be an asset. Remember, ETH dips below $400 pops this crypto revival bubble and would probably drain ETH prices below $350.
Litecoin (LTC) Technical Analysis
Sometimes, Charlie Lee is just but a controversial figure. Straight from his comments on Verge-Pornhub partnership and his proclamation that any serious investor should first buy one Bitcoin before loading any other “sh*t coin”, Lee is quickly becoming an interesting influencer. However, sometimes his comments are hurtful and at the moment, Litecoin is down the pegging order and this flappening is allowing Stellar to occupy Litecoin’s spot. Regardless, it is still up and exchange listing exposes it to more liquidity.
At the charts, bulls are clear winners and what’s more, buyers are now trading above $90, our buy triggers from our previous Litecoin technical analysis and trade plan. Even though there is a slowdown, still we shall consider July 17 up-thrust as an important candlestick in our analysis.
With this dip, it means our entry point would be somewhere between $75 and $80. Thereafter, our first bull targets would be at $110. Any collapse below $80 cancels this bull projection. If it does happen, it would usher in sellers who might drive prices towards $50, our initial sell target.
EOS Technical Analysis
Coin Smart is a Canadian cryptocurrency exchange that what to simplify the work of traders or investors. They shall be availing EOS for their traders. But as they trade, they would have an easy time all thanks to their easy to use and intuitive platform.
Besides, CoinSmart has an innovative and timely tax-time reporting tool useful when filling annual tax returns. This is obviously beneficial for the investor-and EOS. EOS would be exposed to new clients thereby deepening EOS overall liquidity.
Yesterday clipping of EOS bull momentum means our long trades are yet to be triggered. According to our trade plan, all we need is a breach and close above $9, our intermittent resistance.
Before then, our EOS technical analysis dictates we remain neutral with a bearish skew waiting for sellers to drop EOS below $7. Afterward, we can start selling on every retest with targets at $4. After all, EOS is trading inside a deep bear trend. As such it would be counterproductive to our efforts to trade against the main trend.
IOTA (IOT) Technical Analysis
Like EOS, IOTA is still grappling with sellers despite yesterday’s Qubic AMA session with Qubic development team at Reddit. Overly, Qubic introduction of smart contracts working as a separate layer over Tangle promises to be a game changer. That’s why, as a liquid leader of IoT, we remain bullish on IOTA.
However, as the chart shows, we are not ready to initiate IOTA buy trades yet despite the current vibrant crypto space and double-digit gains. As a matter of fact, IOTA is up 11 percent for the week. However, that wasn’t enough to lift prices above $1.3 and July highs to warrant buys.
In that case, therefore, we remain neutral with a bearish position. It shall remain this way until sellers break out below 90 cents. Overall bear targets are at 70 cents with stops at $1. On the flip side, any bullish break out above $1.3 means bulls should aim for $2 as fist targets. Ultimate targets would be at $2.5.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.