Daily Crypto Technical Price Analysis – Bitcoin and Ethereum, 13th August 2018
BTC is representing a gain of about 1.52% in last 24-hours.
We anticipated the bearish trend in the flag-bearer currency having stiff resistance on upper levels. As expected in our previous weekly report, BTC plunged to our said levels on a strong bearish note.
At present BTC has continued to hold above the sentimental support point of $6,000 for the third day and is trading close to $6,400. However, with continues 2 weeks of lower high’s formation, BTC has rejected to scale above the immediate high’s formed over the previous day which we see as strong resistance depicted in the daily chart above at $6,750.
The 23.6% Fibonacci Retracement level of the fall from $9,990 to $5,755 also is representing at the same level of $6,750. The falling EMA’s and formation of a bearish crossover gives more strength to the respective resistance.
Looking into shorter time-frame for 6-hour candle formation:
As we see in chart above, BTC broke below the neckline after the formation of a pattern Head & Shoulders and the neckline forms the same resistance as seen in daily charts at $6,750. Hence, the relative point holds a lot of credibility towards stiff resistance.
The 20 & 50 EMA in 6 hours formations have formed steep bearish crossovers and is hinting towards high selling pressures on every rise we will see in Bitcoin. Can BTC form a reverse head & shoulder for a break-out above the neckline is yet to be seen.
Conclusion : BTC forms short-term bearish outlook with immediate strong resistance along the neckline and the downtrend line. Only a move and close above $6,750 will instill a momentum upto $7,250 and $7,750 where again heavy selling. A breakdown below $6,000 will open up Bear avenues to even making new lows for the year.
ETH is representing a fall of 1.51% in last 24-hours currently trading close to $320.
As mentioned in all our previous analysis, ETH has been under the constant control of bears with its inability to even move above its immediate resistance over the given period of time.
ETH fell below the April low of $358 in a jiffy not even holding above the said support for a day or two. The respective move defines strong bearish signals and thus, the immediate lower high’s forms basic resistance. Though RSI is deeply sold, we have seen lack of interest among the bulls for quick swing upwards. Forming multiple descending channels ETH has formed multiple resistance above.
The only support along the channel is seen between the $25 range of $295-$270 where there can be ideal pull-back but it doesn’t conclude bullish reversal. RSI index and respective volumes along the same level is to be observed carefully. Traders at present are expected to be on the sideline unless any reversal trend is established. Going bears on high will be the strategy that most traders and hedge funds will look out for at current state. On upper level resistance are formed around $380 and $430.
* S – Support , R – Resistance*
* EMA – Exponential Moving Average*
Traders can smartly use their skills and can refer to the technical levels above to make their own optimised trade decisions. Happy Trading..!
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