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The market data is provided by the HitBTC exchange.
Fatfish Internet Group CEO Kin-Wai Lau believes that a Bitcoin exchange-traded fund (ETF) might be a reality within “a couple of months.” However, industry experts are divided on whether a Bitcoin ETF is necessary or not.
U.S. Securities and Exchange (SEC) Commissioner Hester M. Peirce, the sole official to express dissent over the recently rejected Winklevoss twins’ ETF proposal by the SEC, believes that an ETF could institutionalize the Bitcoin market and bring more transparency to cryptocurrency trading.
A Wells Fargo/Gallup poll conducted among U.S. investors has found out that 75 percent of the participants viewed Bitcoin as a “very risky” investment, while 23 percent considered it “somewhat risky.” This shows that an SEC-approved ETF could attract numerous new investors to Bitcoin.
If investors follow the right principles, even digital currencies can be traded at manageable levels of risk, the way we have done for the many past months. We have only suggested reliable setups, recommended booking partial profits at regular intervals and trailed the stops higher to minimize the risk for our readers wherever possible.
Still, no forecast is 100 percent correct, hence, the traders should close the positions at the recommended stop losses and protect their capital.
Bitcoin is looking tired. It has broken down of the small uptrend line, which shows that the bullish momentum is weakening.
A failure to break out of the $8,566.4 line is likely to result in a dip to the breakout levels of $7,750 once again. The 20-day EMA is close to $7,600 and is trending up. Hence, we anticipate a strong support in the zone of $7,600 – $7,750.
Therefore, we suggest maintaining the stop loss of $7,400 on the remaining positions initiated at $6,650. The BTC/USD pair will pick up momentum above $8566.4.
Ethereum could not break out of the 50-day SMA for the past six days. This has resulted in a liquidation of long positions held by traders, which has pushed prices below the trendline support.
The ETH/USD pair can now slide to the next support line at $440 and below that to $404.99. This brings the larger range of $404.99 – $496.36 into play.
The digital currency will gain momentum only on a breakout and close above the $500 mark.
We recommend holding the long position with the stop loss at $400.
Nothing much has happened on Ripple for the past nine days, as it has been stuck in a tight range of $0.435 – $0.47.
The XRP/USD pair will take a directional move only on a breakout or breakdown of the large range of $0.4242 – $0.51978.
Though we like the positive divergence on the RSI, we shall wait for the buying to return before proposing any trades on it.
The moving averages have completed a bullish crossover and the 20-day EMA has been providing support to Bitcoin Cash since July 20. This confirms the moving average as a strong support.
On the upside, the downtrend line continues to act as a strong resistance. The BCH/USD pair will either break out above the downtrend line or break down of the 20-day EMA within the next couple of days.
If it breaks out, the zone between $880 and $934 will continue to act as a strong resistance. In case of a breakdown, the supports are at $670 and $745.
We suggest traders hold their existing long position but trail the stops to $740. Let’s reduce our risk.
The 20-day EMA is flat and the 50-day SMA is also flattening. Both of these point to a continued consolidation of EOS inside the range of $6.8926 – $9.4456.
The EOS/USD pair should now decline to $7.7 and thereafter to the bottom of the range at $6.8926. A break down from the range will be a negative development, which can result in a deeper fall to $5.1 and further to $4.3396.
We shall turn bullish on the virtual currency on a breakout and close above the range. The targets on the upside will be $11.9986 and thereafter $15. Therefore, we maintain the buy call given on July 25.
After failing to break out of the $91 level on July 24 and July 25, Litecoin has declined to the lower end of the tight range of $80 – $91. A break of this level will plunge the prices to the bottom of the larger range between $74.074 and $91.146.
The LTC/USD pair is forming a nice basing pattern and will turn positive once it breaks out of $91.146 and sustains above it for three days.
On the downside, any break of the $74 line will be a negative development and can result in a drop to $57.
There are no trades on the cryptocurrency as long as it remains inside the range. We might initiate a long call on a break out of the range.
Cardano is looking weak. It has not been able to reach the downtrend line of the descending triangle. It has a strong support close to $0.153 from the horizontal line and the 50-day SMA.
If this level breaks down, the ADA/USD pair can slide to $0.12. Therefore, we suggest to maintain the stops on the existing long position at $0.14.
The digital currency will show first signs of recovery if it breaks out of the downtrend line of the descending triangle. It will turn positive only above $0.181617. Both moving averages have flattened out, increasing the probability of a range formation.
Stellar did not find buyers above $0.32 and has turned down, breaking below the uptrend line. It can now correct to the 20-day EMA, which should act as a strong support.
If the digital currency bounces off from the 20-day EMA and rallies above $0.32, it will retest the $0.36 level once again.
A break of the 20-day EMA can sink the XLM/USD pair to the next support at $0.2544. Therefore, the investors can retain their stop loss on the existing long positions at just below the 20-day EMA.
IOTA has failed to break out of the 20-day EMA for the past four days. This increases the probability of a fall to the critical support at $0.9150.
The digital currency has formed a descending triangle pattern, which will complete on a breakdown and close below $0.9150. If the bears break below the June 29 low of $0.8851, the IOTA/USD pair can slide to $0.666 and below that to $0.5721.
Therefore, we suggest traders book a loss on 50 percent of their existing long position at the current prices and keep a stop on the remaining position at $0.8850.
The first sign of a change in trend will be indicated when the virtual currency sustains above the downtrend line of the triangle. Until then, all rallies will be sold into.
Tron broke out of the downtrend line on July 29, but could not scale the 50-day SMA on a close (UTC time frame). This is the second time the digital currency has turned down from the 50-day SMA, which makes it a critical overhead resistance.
The TRX/USD pair is currently trying to take support at the downtrend line and the 20-day EMA. If this support breaks, the next stop is at $0.03275.
On the upside the digital currency will pick up momentum only after it sustains above the 50-day SMA. We don’t find any reliable buy setups now, hence, we are not suggesting a trade on it.
The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.