The last few hours have been rather exciting for the cryptocurrency market, as top coin prices move substantially upward. Among these is EOS, a coin whose price is displaying sky-high momentum, soaring by around 15% over the past 48 hours (now trading at $7.70 on Monday afternoon).
However, EOS is not the only coin showing positive momentum. Stellar Lumens is also demonstrating substantial growth (trading at $0.22 as of Monday). Trading outfits have even greater predictions for this currency. In May and June, Altcoin Forecast had predicted that XLM would gain about 35% against bitcoin (moving as high as 0.00004664 Satoshis by the end of July).
For the past week, traders have been somewhat bearish on ethereum. However, the ETH/USD price range has stayed above the $420.00 support level and now appears to be consolidating around the $430.00 range. Thus, expect this price level to form a support base for an upward move. Likewise, ETH/BTC is consolidating losses above the 0.0680BTC support, and it seems likely that this pair will break past the 0.0700BTC resistance level soon (setting the stage for a more substantial recovery).
Should there be a 2-hour close above $440.00, Ethereum’s price may well gain momentum to meet the $450.00 and $470.00 price range. Overall, the current price action indicates that Ether sellers are losing steam. If so, expect a bullish break with prices ranging between $440.00 and $450.00 in the coming days.
Since most cryptocurrencies move in tandem with Bitcoin, it’s always prudent to analyze what has been happening in the BTC market. For just over a month, BTC has been ranging between $6800 and $5750, the longest trading range we’ve had since its ATH in January. Traders appear to be rejecting any moves above the $6800 point, as most prices settle around the $6200-6300 area.
Given substantial price resistance at this level, any investors who went long on the spike traps have most probably liquidated or are still in a holding position adding margin. Investors who bought at this range are now underwater and have likely placed a sell order to break even. Such moves will further solidify this price resistance once we approach it again.
This supply area has been very crucial while BTC has traded in this range. As you can see from the red circles above, this price level was first used as support until it was broken. It’s now viewed as a resistance level. The point here is we have just broken down again, and if history has any say, traders will view this as resistance and a short opportunity for bears. As you can see, large bearish candles exist on the current price action while bulls try to resurface the price above. This bullish anticipation is a mistake but a happy treat for the bears as they add to their positions for the next leg down.
The next bottom can take one of two scenarios. Prices can rise above $5950, where eager bulls are waiting to outbid support buyers. Alternatively, prices can sink below that support price level (especially if the bears manage to keep pushing prices down). Either way, if you are waiting to buy or hold long, this is the price level you should keep in mind. Be sure to exercise financially-safe risk management practices as there are no promises that this price level will hold.
This last green candle has no volume and underscores popular belief that the current price will break down. Bears continue to have the upper hand as each time bulls try to pull away they get slapped in the face. The short-term trend is clear and unlikely to break, so there is no point in assuming or trading otherwise. The current trend is not your friend, and the probability of going down is much higher.
The bullish scenario is that the market is completing a predetermined inverse head and shoulders pattern and will soon turn around. However, the low volume and bearish behavior we are getting make this highly improbable.
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