Despite the total cryptocurrency market cap declining to $386 billion, Bitcoin still dominates at 35 percent. It’s an important crypto and that’s why mainly because of its influence, an ETP by VanEck and SolidX has been filed with the SEC. Yes, alt-coin prices are in a down trend and moving inside a tight trade range and so unless we see BTC or ETH prices above $7,800 or $650, we shall remain neutral.
Let’s have a look at price action:
Bitcoin (BTC) Technical Analysis
The excitement is palpable in the crypto world following the filing of VanEck and SolidX’s VanEck SolidX Bitcoin Trust Exchange Traded Fund application to the SEC. Of course, this is extremely hawkish and even if many would argue that this was just but a simple amendment of their previous application which the SEC had requested them to pull out, still Bitcoin Futures traders would have something to look upon now that this new ETP would be backed by insured Bitcoin.
Even though their ETP product is exclusively meant for institutional investors locking out ordinary investors, it’s likely that this move will pave the way for more same caliber investors to wade into “murky” waters of cryptocurrency investment. And why not? The returns are incomparable and already John Lore, a lawyer, said several university endowment funds have a portion of their capital in Bitcoin and other cryptocurrencies.
In the charts, it’s the same story of risk reward, effort and result. Bitcoin bulls are laboring to reverse June 4 losses as the last three candlesticks shows. Like before, we are net bullish and for our projections to stay true then we need to see up-thrusts above $7,800 in the daily chart. Well, aggressive traders can begin loading up their longs at current prices but because of price swings, safe stops should be at $7,200 if not $7,000. Our ultimate targets stands at $10,000, a round psychological number.
Ethereum (ETH) Technical Analysis
Germany seems to be European’s leading adopter of cryptocurrencies. It is obviously warming up to new technologies and after BAFIN-the country’s Federal Financial Supervisory Authority-gave the node to licensed banks to upgrade their ATMs so as to allow crypto-fiat exchange, an approval stamp was given to cryptocurrencies. This is important because Germany, like the US, plays an important role in Europe’s macro and micro economic matters. With this directive, account holders would in the future cash out in Bitcoin, Ethereum or Litecoin and vice versa after their respective banks upgrades their cash dispensers.
From our charts, Ethereum (ETH) prices are still moving within a $70 range. While we remain upbeat, there needs to be a follow through of last week’s bullish events if at all our projections are valid. As such, ETH bulls need to close above $630 and $650 on the upper edge to confirm our skew. If not and prices continue moving as it is today then we should stay put and observe price action until when prices either move above $650 or sink below $550. Of course, the latter move invalidates our bullish projection.
Bitcoin Cash (BCH) Technical Analysis
At a time like this in 2017, Bitcoin Cash didn’t exist. But after their fork-and they have been forking by the way, prices did jump more than 3000 percent registering highs of around $4,100 in December 2017. That’s a feat that will take time to replicate especially if we refer to recent bear events. Now, will we see Q4 2017 moves panning out this month despite slow gains in the last couple of months? Well, let’s wait and see if their widespread adoption and the 32 MB block size increase will help buoy prices. Besides, Roger Ver plans to drive BCH usage in Japan by making it a payment option in every convenience store in Japan is a plus.
As this is happening, BCH prices are slow. Like BTC, prices are stuck within a June 3 $100 trading range. If anything, it’s simple logic to place respective support and resistance at $1070 and $1200. These are June 3 low-high and are important in our analysis. Overly, we are bullish and because of this position, our odds of last week’s follow through is elevated if we see buyers trending above $1200. From there I recommend picking points of undervaluation in lower time frames and aiming for $1800.
EOS Technical Analysis
Three days later and we must agree that the current issues surrounding EOS launch puts the project at risk. Its protracting launch is frustrating coin holders in the process. Many didn’t think this would take long to accomplish even as EOS NY and Canada coordinate with creation of voting portal and updating the community of the progress. This is on top of security issues and realization that after all, there shall be no ideal decentralization as previously drummed. After voting we shall have 21 Block Producers who shall be in charge of the network and their power is obvious. So, whether combination of launch delays, network vulnerabilities and a lack of a working blockchain shall impact prices negatively, the chart will show.
Price wise, EOS is down one percent but still up 14 percent week over week. As it is, trading is still active but we expect further delay to erode investor confidence and before then, selling with targets at $12 can be a good strategy. Assuming you stay on the side lines, waiting for moves above June 2 highs at $15would also be safer as it would be aligning self with June 2 bulls.
Tron (TRX) Technical Analysis
Even if we may say Tron (TRX) marketing has been nothing short of aggressive, we must cut them some slack and commend them for their efforts. After Shift Markets, Tether and BitForex, Justin Sun shared a snapshot in Twitter showing the number of EOS tradable pairs. Surprisingly, with every partnership, supporters have more than 100 ways of buying EOS. Slowly but surely-regardless of low prices, Tron is slowly evolving as a global product and tapping capital by positioning themselves as an easy option for retail investment.
Like EOS, TRX prices are stuck within a tight one cent consolidation. We are net bullish considering the hype that this project has been given and in that case, our strong support lies at 5.5 cents. For assurance, sellers should wait for strong breaks below 5 cents while bulls should see prices trending above 7.5 cents. That’s about May 28 highs, a level and a candlestick that is important in our analysis.
Want more analysis? See our daily forecasts for more of the top cryptocurrencies: