Weekly Technical Reviews on Cryptocurrencies

11 June 2019

Bitcoin Cash (CMP: $388)

Exhibit 1: Daily Chart of BCH

As the daily chart of Bitcoin Cash shows in exhibit 1 above, the uptrend is pretty clear but lately a pull back is also occurring. In general, retracements of these sorts generally present buying opportunity at a discount within a primary uptrend, but at the same time we also have to make it sure that we are not caught in a trend reversal. Its okay to buy cheap, but it’s not okay to buy in a downtrend.

So how could a potential resumption of primary uptrend look like? To begin with, the present weakness in Bitcoin Cash should not break support of 360 odd levels. And secondly, it has to put up strength to go past 400 in the near future. Once that happens, it will increase the odds of primary uptrend resumption to a great extent. The previous high of 460 made in May could be the target in that case for BCH & one will have to observe stop loss at 360 levels.

XLM/USD
Exhibit 2: Daily Chart of XLM/USD (CMP: 0.121)

The upward momentum for this Crypto pair is slowly waning out & it has in fact broken a significant support at 0.122 levels.

We can see the next important support for XLM at 0.11 regions & its only upon violation of this level that the intermediate uptrend might reverse. In short term though, the weakness is likely to continue for some more time.

Hence, it could be a good idea to trade it from the short side. Sell XLM on rise to 0.127 regions with stop at 0.135 & target 0.115.