Bitcoin, Stellar Lumens, Tron, EOS, Litecoin Price Analysis September 5th

The crypto market is nascent and in such a developing sector, speculations and rumors can breed paranoia. Like the recent activation of Bitcoin wallet holding 111,114 BTCs after four years of hiatus. While it is good and shows intent, it may as well be a bullish damp now that its owners are liquidating their holdings in several exchanges. Nevertheless, most coins sensitive to BTC and after today’s flash crash, altcoins are literally melting confirming the general skepticism of altcoins bulls.

Let’s have a look at these charts:

Bitcoin Price Analysis

News Highlights

After four years of dormancy, a Bitcoin wallet with 111,114 BTCs worth $800 million at current spot price is now active. As expected, the sphere is ripe with speculations on who might be the owner of the large, old whale account. Some say Satoshi, the anonymous Bitcoin network creator is back while others are a bit cool saying the account might be related to Mt Gox where a civil Rehabilitation Scheme is ongoing thanks to the efforts of the Japanese FCA. Whether they are right or wrong remains unclear but the movement of Bitcoin from this whale account to exchanges mean the wallet owner is keen to cash out and this could contribute negatively to price.

Technical Analysis

Bitcoin (BTC) Technical Analysis
Bitcoin Daily Chart by Trading View

All things constant, recent higher highs in Bitcoin prices have not only been positive for the crypto market but went a long way in instilling confidence in investors battered by bears. From the charts, it’s clear that bull momentum is waning and after today’s five percent dip in prices, we now have a nice bearish engulfing pattern retesting the upper limit of our support. Because of this slowdown, exiting trades at spot is important. Should tomorrow end up lower, we recommend selling and aiming for $6,000 once more.

EOS Price Analysis

EOS Technical Analysis
EOS Daily Chart by Trading View

Overly, EOS is bottoming up and it might be reasons to do with on chain developments and most importantly the way RAM resources are made use of in the EOS network. Anyway, at spot prices, it’s clear that bull momentum is fading and after today, we should have a bearish Evening Star pattern in the daily chart.

After all, after today’s break down, prices are down 13 percent in the daily chart and the result is that dark cloud cover at $7, an important resistance level in our analysis. Overly this means buyers found a glass ceiling and sellers are flocking back to the market. Therefore, the best approach to capitalize on this new found momentum and to sync back to long term momentum is to sell at spot with targets at $4 with stops at $7.

Litecoin Price Analysis

Litecoin Technical Analysis
Litecoin Daily Chart by Trading View

Like BTC market, there is a sharp downturn of prices and though unexpected, LTC sellers are back rebuffing bullish attempts as clearly demonstrated in the daily chart. Not only do we have a bearish engulfing pattern right at resistance—previous support at $70 but prices but this strong and high volume rejection of higher highs completes another re-test phase and ushers in the next wave of sell pressure, the bear trend resumption phase. As it is, we recommend shorting Litecoin at spot prices with stops at $70 and first targets at $50 and later $30 as laid out in our last trade plans.

Stellar Lumens Price Analysis

News Highlights

After years of successful partnerships, IBM now has a cross border payment solution, Blockchain World Wire which make use of Stellar platform and XLM to facilitate near instant fiat remittance.

Technical Analysis

Stellar Lumens (XLM) Technical Analysis
Stellar Lumens Daily Chart by Trading View

Of all the coins under our review, Stellar Lumens prices are haphazard to say the least. Aside from printing encouraging highs just like the majority of coins under our radar, prices are moving inside an ascending channel with caps at 25 cents on the upside and the support trend line on the downside is injecting momentum and buoying bulls.

At current prices, XLM is trading near the apex of this wedge and as history shows, a break out is imminent. In case there is a break above 25 cents, then we suggest buying on dips with first targets at 40 cents and 50 cents.

On the reverse side, any breach below the support trend line could mean another wave of sellers aiming for 18 cents—2018 lows.

Tron Price Analysis

News Highlights

  • To spur ecosystem participation, Tron has announced that it shall be rewarding users who vote for their favorite super representatives.
  • Various news sources indicate that the Tron network now has more active accounts than EOS, a claim that has been supported by Tronix.

Technical Analysis

Tron (TRX) Technical Analysis
Tron Daily Chart by Trading View

Though bullish courtesy of last week’s higher highs, TRX continues to taper and confining its movements is Aug 28 high lows and the resistance lines of this clear bull flag.

Either way, today’s 12 percent clip of bullish momentum spells down for buyers and odds are we might see a meltdown as TRX reacts to BTC collapse. Largely because of this, we suggest shorting TRX at spot rates with stops at 2.7 cents and targets at Jan 24 lows. This also translates to exits of previous longs position for risk off traders with active buys after that thrust closing above Aug 17 highs of 2.3 cents.

Regardless, we shall recommend a neutral stand as risk reward scenario remains prohibitive. Instead, once buyers close above 3 cents, traders can ramp up longs on pull backs with first targets at 4 cents.


Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.

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