June 14th Technical Analysis For Today's Top Coins
With every slide, Bitcoin dominance increases and currently, Bitcoin controls 40 percent of the total crypto market which by the way has been in turbulence since May 2018. Now, odds are we might see a recovery in BTC and ETH prices which hopefully might help resuscitate other alt coins as EOS and IOTA who have suffered the brunt of recent market capitulation.
Let’s have a look at these charts:
Bitcoin (BTC) Technical Analysis
Early this year, the US Security and Exchange Commission (SEC) together with the Department of Justice (DoJ) were hot under heels investigating the Tether Limited, the company behind USDT and BitFinex, the parent company. Now, while they were summoned to court over allegations of market manipulation, a damning report has been released by the University of Texas-Austin detailing how indeed Tether was used to pump the prices of Bitcoin late last year.
In a paper, John M. Griffin and Amin Shams from University of Texas-Austin hypothesize that Tethers (USDT) was indeed used to buy Bitcoin prices during dips in the run up to last year cryptocurrency all-time highs and there are clear patterns supporting this claim. One of them indicates that shortly after USDT weminted by Tether, it was channeled to BitFinex and other exchanges where there were coordinated support of BTC prices at key anchor points. These were often price levels in the multiples of $500.
From reliable statistics, Bitcoin prices has been known to influence the prices of other alt coins. Recent market depreciation attest to that as the crypto market is down $20 billion in the last week alone. Bitcoin on its part is down 16 percent week over week but today prices might find support. Notice that despite strong bear pressure, we are seeing signs of strong shift of momentum especially in the 4HR chart. Because of this, I recommend buying with stops at $6,000 and buy targets at $7,000 and $7,700-which happens to be a resistance point in the daily chart.
Ethereum (ETH) Technical Analysis
Besides Japan, Switzerland is known to be a keen blockchain supporter. Recently, one of its cities, Zug is planning to incorporate blockchain technology during voting. To implement this, Ethereum would be the preferred blockchain but before they move forward, Vitalik has a word of caution. He said rather than starting with voting straight away, it was better for them to start with petitions which were not a security risk and non-binding. Should they then can make use of blockchain for verifiability and ZKP feature for privacy assurance.
Price wise, it’s obvious that we are in a deep bear trend with ETH oscillating around our previous support lines and intermittent bear targets of $500. In my view, we might see a bit of a reprieve with ETH appreciating above $500 today. That’s why I recommend pausing selling and waiting for better entries at around $550. In the meantime, buying on dips-which is obviously risky, can be one way of trading and taking advantage of brief ETH support in lower time frames with tight stops at $440.
Litecoin (LTC) Technical Analysis
More often than not, any form of cryptocurrency lending services are considered Ponzi schemes if not outright scams. Of course we need not to go far and we can draw lessons from BitConnect and their bitter end early this year. Now, with Japan’s BitBank modelling their business around the same plan, investors have every right to ask questions but they are ready to answer. From their part, BitBank are very categorical stating that not every investor is eligible and in the days to come Litecoin would be amongst the coin that they would borrow and lock from investors. News as these are good for LTC as a brand and coin holders because it shows they are credible and trusted by big organization.
As this is happening, LTC is trending below $110, a key support line influential in our analysis. Considering the level of market participation on June 10 when markets broke below it, trading with the trend is ideal. This dictates selling with every highs but before we consider this option, rejection of lower lows in lower time frames demand patience. In this case, selling from recent resistance lines at $110-during retest of previous support, would be ideal. Overly, our short term target would be at $70 but should there be strong up thrusts with volume spikes above $120 then our bear projection would be voided.
EOS Technical Analysis
The buzz surrounding EOS mainnet launch is quickly dissipating and this is not what Block One and Dan Larimer expected. As it is, close to nine percent of EOS has been staked for Block Producer voting and this has been painfully slow but regular at the same time. In the days since the launch 10 days ago, EOS prices have slid from $15 to $10 and are posed to stagnate at these levels until the 15 percent threshold level is hit. Remember, safe the trading taking place at exchanges, these EOS tokens are literally useless and value would only be conferred once these generated blocks are validated.
Straight from the chart, there is hope. Look at June 13 bullish pin bar and the accompanying high volumes for perspective. Chances are today’s higher highs might be the launching pad of EOS bulls who might then push prices above $15 and $23 more so if Block Producer voting turns out successful. As such, buying with stops at $9 would be ideal going forward.
IOTA (mIOT) Technical Analysis
Regardless of the crypto blood bath which seems to be abating, IOTA is a long term buy. There are many reasons to support this skew and we can talk of Qubic. However, even though it is a milestone for IOTA project, mid-term partnership and direct Tangle implementation by tech companies like what Fujitsu and Volkswagen are doing should be market movers.
In the chart, we can see IOTA sellers rejecting lower prices. The 4HR chart provides a clear perspective and should be the foundation of our short term bullish stand which I’m recommending. If anything, buying at current prices or once IOTA buyers are trading above $1.3 would mean stops at $1.1. Check out that coincidence of buy injection with volume spikes and know that there is a shift of momentum from sellers to buyers in play.