Weekly Technical Review on Cryptocurrencies
9 July 2019
BTC/USD (CMP: $12670, Bitfinex)
Exhibit 1: BTC Daily Chart
The awe inspiring run in Bitcoin continues unabated. After the late June spurt that saw prices go past $13000 land mark with considerable ease, some profit booking set in & this premier Crypto pair underwent a retracement phase as $10000 mark was briefly violated. But given the colossal rise from $4000 till $13000 in a span of three months flat, the consolidation was no more than a pullback & we had expressed this view in the earlier edition of this report as well last week.
True to our expectation, Bitcoin’s violation of $10k did not prove fatal & strong demand emerged thereafter resuming the primary uptrend and as of now, the June high of $13500 is within reach.
Going forward, we expect the upward trend in BTC to be extended & over a period of time, the previous high of $13500 will be breached upward. But for this intermediate uptrend to remain valid, it is important for BTC to honor the levels of $11000 for if that level is breached, the recent series of higher bottoms might be interrupted, resulting in break of the intermediate uptrend.
Ripple/USD (CMP: 0.398, Poloniex)
Exhibit 2: XRP Daily Chart
The present rally in Bitcoin is to-some-extent unique in the sense that many other Crypto pairs are not following suit and many of them are in fact looking fragile & vulnerable. Ripple/USD happens to be one such pair, where not only it has refrained from responding to demand but testing support at a lower level of its range & chances are higher that even this support will be broken in near future.
As exhibit 2 shows above, a series of lower tops have been enforced on Ripple daily chart & last week it has tested the support of $0.37 (Mid-May low). Well, candle patterns are turning weak & further testing in near future are unlikely to hold this support and in that case, $0.34 will become potential target for Ripple. This view will be negated once it goes past $0.43 mark.
