Weekly Technical Report for Cryptocurrencies

27 August 2019

BTC/USD (CMP: $10200)

Diagram1: Bitcoin Daily Chart with 100 day average

With passage of time, Crypto pairs are turning weak day-by-day. Bitcoin, the flagship crypto is still holding on and in fact leading its peers by outperformance, but certain technical signs are emerging suggesting that sellers are becoming aggressive and demand is getting subdued.

Foremost technical evidence of weakness of BTC is the downside break of symmetrical triangle as shown in diagram 1. We were watching this triangle for quite sometimes now & finally it got breached downside. However, it is not conclusive evidence as yet. We have drawn a support line at 10100 regions and only upon violation of this support shall the weakness be confirmed. 10100 assume importance also because of its value being coincided with 100 day simple average (refer to diagram 1) . There is hence a confluence of support at this region and its violation will be significant. If 10100 really give in, we expect 9200 levels to be revisited in the intermediate term.

Ether/USD (CMP: $186)
Diagram 2: Ether daily chart with 100 day average

Although Bitcoin is still holding on and its weakness not confirmed as yet, same cannot be said for other major crypto pairs. In fact, many of them are trading below their respective 100- and 200- day averages and showing signs of continued weakness. Ether happens to be one such Crypto where bears are dominating prices for quite sometimes.
Primary & Secondary downtrend-lines are shown in diagram 2. Prices are now testing another important support at 186. But downtrends are notorious for breaking support and here too, the odds are high that 186 will ultimately give in. Once that happens, we can expect Ether to revisit 170 zones in no time. Stop loss for this short position may be placed at 196.