Analysis of BTC, ETH, AND BTT — and what their Trendlines say

Analysis of BTC, ETH, AND BTT — and what their Trendlines say

While the bulls are cheering the recent upswing, a research note from JP Morgan states that this current rally “carries echoes of late-2017”. While we are also surprised with the pace of the rally, to term it similar to the late-2017 rally is incorrect. Usually, the first leg of the up move from the lows is strong and more so because the digital currency had been in a long and crushing bear market.

On May 17, Bitcoin plunged about 20% within 15 minutes on the Bitstamp exchange as a large sell order was executed. However, the positive thing is that the flash crash was limited to one exchange only and the recovery has been quite sharp. This shows a lot of demand at lower levels. So, will the rally resume now? Let’s find out.

Aurox

BTC/USD

We had anticipated the Bitcoin rally to stall at $7,500 but the bulls easily broke out of this level and carried the price to the next resistance at $8,500. Some profit booking was seen at this level that dragged the price back to the 20-day EMA, which is acting as a strong support. This is a positive sign, as it indicates buying interest on dips.

The bulls will now try to scale the overhead resistance at $8,500 once again. If successful, the next stop is likely to be closer to $10,000. We don’t expect the digital currency to rise above $10,000 in a hurry. These vertical rallies are not sustainable as they increase the risk of a sharp pullback because the strong support is way lower at $5,000. We prefer the digital currency form a higher base and then launch the next leg of the up move.

That will happen if the bulls fail to ascend $8,500 levels. In such a case, we might see a few days of consolidation between $6,500 and $8,500. The trend remains bullish as long as the price stays above the critical support of $6,000. A breakdown of this support will be a negative sign.

Aurox

ETH/USD

Ether broke out of the ascending channel on May 14 and picked up momentum, as projected in our previous analysis. It overshot our target of $255 and reached a high of $281 on May 16.

We like the way the bulls bought the dip on a retest of the breakout levels of the channel, instead of waiting to buy lower at the 20-day EMA. This is a positive sign. The bulls will again try to resume the up move by breaking out of $281. If successful, the next level to watch on the upside is $300 and above it $320. A move above these levels in the short-term will surprise us.

Traders who have booked out of their long positions at higher levels can wait for a new buy setup to form before forming long positions once again. On the other hand, others, who still have part positions left, can trail the stop loss from $155 to $230. The stops can be tightened further as the price moves closer to $300.

Our bullish view will be invalidated if the bears sink the pair back into the ascending channel and below the 20-day EMA.

Aurox

BTT/USD

After the strong up move in the first three days following listing, the cryptocurrency topped out at $0.0011650 on February 12. The subsequent pullback dragged it down to $0.00059670 on May 08, which is a sharp fall in a short span of time.

However, since then, the digital currency has picked up momentum and has quickly rallied closer to its lifetime highs. We expect a few days of consolidation or a minor correction before the bulls attempt to break out of it. The pullback is likely to find support between $0.00093070 and $0.00086756, which is 38.2% and 50% Fibonacci retracement of the recent rally. The next up move can carry the digital currency to $0.001733 and above it to $0.0020.

Our bullish view will be invalidated if the bears sink the price below $0.00080443. That might result in a complete 100% retracement of the recent rally.

Aurox

Analysis of BTC, ETH, AND BTT — and what their Trendlines say was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.

Publication date: 
05/20/2019 - 20:30
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.