Weekly Technical Report on Cryptocurrencies
20 November 2019
BTC USD (CMP: $8160)
In the past four months & since the 13600 top was made in Bitcoin late June, BTC has largely remained within an intermediate downtrend. While pullbacks in this period were very sharp but they were not supported by continued demand. Consequently, we witnessed at least five distinct lower tops on daily chart in this period. This downtrend is shown by the downward trend-line in diagram, depicted in red.
Downtrends are typically known to be breaking the supports while honouring resistances and this is exactly what we are having to witness in this premier Crypto pair. Recently we saw an important support at 8800 to give in which was surpassed quite easily in late October. But once Bitcoin fell below this region 8800 is now likely to offer resistances in near future.
We opine that there are not enough evidence as yet for the weakness to dissipate in near future and Bitcoin is likely to revisit lower levels and 7500 is a foreseeable target. This bearish view will however be negated if & when BTC manages to go past 8800 in near future.
Ether USD (CMP: $176)
While the leader among Cryptos (BTC) is going through such a harrowing phase, we cannot expect the followers to sing a different song. Most of the other pairs like Ether, Ripple or EOS are facing same difficulties if not more. They too are experiencing a long term secular bearish phase.
Among these followers, Ether presents a particularly interesting case for its clear series of lower tops as visible on the daily chart and its incessant supply at 100 days average as shown in the adjoined diagram. It has broken many supports since July and the bears are not looking exhausted as yet, In a natural course of time, we are expecting September & October low (on closing basis) at 160 odd levels to be revisited again, if not broken further down. Immediate stop-loss might be put at 185 regions.
