20 August 2019

Technical Analysis Tuesday: The Bullish Bitcoin Scenario Continues

Yara Ainsworth

Yara Ainsworth

Head of Marketing und Communications bei Crypto Finance AG

Über den Autor

Let’s dive right into the charts.

BTC$ (daily)
There was definitely some action around that possible lower leg of the triangle (dotted line). It is hard to pinpoint the exact level, but at around 9.8k buyers stepped in. It was not driven by derivatives; we saw cash buyers. On a sidenote, Coinbase has been leading the table in terms of volume for the past 6 months now. It is well ahead of the other big exchanges.

Our bullish scenario is still valid as long we stay above the 9.7k-ish area. Currently, we are approaching the first resistance at around 11.2k, which is also near the upper band of the Ichimoku cloud. I reckon, if we clear that level to the upside, we will attack the upper leg of the triangle and should see some nice follow-through buying action, which will push us towards 13k.

In case the market turns south, I will liquidate longs below the 9.7k-ish level. After we break below 9.4k, it will be time to go short with a first target of 9k and then 8k.

ETH$ (daily)
It just does not look good for ETH. We broke the trendline and even plunged below the support zone for a short period of time. Also, in terms of wave structure, we are making lower lows and lower highs, which is a clear sign for a bearish trend.

Additionally, prices are trading below the Ichimoku cloud, which also turned bearish (the fast indicator is crossing the slow indicator to the downside).

From a liquidity pool point of view, if the bearish trend prevails, I see the first support at around $135-140.

LTC$ (daily)
The picture is very similar to that of the ETH$ chart. If the current bearish trend prevails, I see the first support at around $64 and then the bigger support zone at around $50.

XRP$ (daily)
We saw some reaction around the $0.22-0.24 level. But in all fairness, this chart looks awful. As long we trade below the $0.36 level, I do not see any relief in this bearish trend.

BCH$ (daily)
The potential shoulder-head-shoulder formation is still on the cards. Setup wise everything looks perfect. Maybe too perfect?

Let’s lay out the facts. Prices are trading below the Ichimoku cloud. The cloud is bearish. Prices are swinging around in the support zone. The neckline is converging with two important points: the support zone and the liquidity pool. If we break through to the downside, the move could pick up some serious speed until we reach the first support level at around $175.

EOSUSDT (daily)
After we broke the bullish trendline, we have already bounced twice off of the support line at around $3.55. It is also a liquidity pool. But, as you can see, if we break through, there is a liquidity hole until $2.70, which I think will be the support level we are going to reach.

To erase the bearish sentiment, we need at least a daily closing above the $4.80.

Altcoins versus BTC are all looking very bearish. We will cover this topic in our Rotation Report on Thursday. Nevertheless, below are some charts without comments:

LTCBTC (daily)

IOTABTC (daily)

XRPBTC (daily)

ADABTC (daily)

TRXBTC (daily)

XLMBTC (daily)

MKRBTC (daily)

LEOBTC (daily)

BNBBTC (daily)


BTC$ 15-Minute Chart Analysis

We reached my target from yesterday after we broke the 10.5k level. If we are able to hold above the 10.6k level, I see prices continuing towards 11.2k. On the downside, there is very good liquidity at around the 10.3-10.4k level. The larger range is 10.3-11.2k, and we are sitting right in the middle of it.