30 Juli 2019

Technical Analysis Tuesday: Treading Water with Bitcoin

Patrick Heusser

Patrick Heusser

Senior Trader bei Crypto Broker AG

Über den Autor

For this Technical Analysis Tuesday, here is a look at the trends.

Stay tuned for our ETH special for tomorrow, and our commentary on the top 20 altcoins on Thursday in our Rotation Report.

BTC$ (daily)
We are still within the (potential) ABCDE correction, trying to print the “E” type of low, but with less conviction and selling pressure than in the previous waves down. Volumes are diminishing, showing a weakening of the corrective downtrend.

The “old” level 8.9k is still our next valid strong support. As mentioned in our last report, around the 8.9k level is the mark of the Fibonacci extention target. If that level breaks, we can easily expect to see 7.5k within a very short time.

On the resistance side, we have 11.2k to clear on a daily closing level (above the Fibonacci cloud, and marking again a higher high than the “D” move.)

In general, what we need for a trend change, or further move lower, is a spike in traded volumes. Volume precedes price, as traders say, the next move and direction will not occur as long as we tread water and just hover along the 9.5k mark.


ETH$ (daily)
We will cover ETHUSD extensively in tomorrow’s report, and take a look at several interesting current market conditions.

Litecoin is starting to develop slightly better indicators compared to the bleak outlook of last week, but “bitcoin’s little sister” is not out of the woods yet. Although we broke the bullish trendline, re-tested, and came lower afterwards, the price seems to be supported around the $90 level. Only a break below the $80 level would indicate further weakness and a worsening of the current picture (break of the 200 daily moving average).

We are seeing the same levels as last week as resistance on the topside: $100 as the first resistance to the upside needs to be taken out to turn me mildly bullish again.

After the break of the bullish trendline, BCHUSD seems to be consolidating at the important $300 mark. The 200 daily moving average is holding as a support so far, but similar to LTC a break would indicate additional weakness.

From the pairs covered in this report, ADAUSDT looks the worst by far, at least given the price action of the last month. Currently, hovering just below its 200 daily moving average, ADAUSDT is in no man’s land, which is where it will probably stay for some time.