Ethereum (ETH) Could Kick Off A Mini Altcoin Season As Early As This Week

Ethereum (ETH) is struggling to break out of the symmetrical triangle it has been trading in since the beginning of the month. The price started to rally significantly around June 10 and topped out around June 16. However, it is once again ready to climb towards the top of the triangle having just tested the bottom of the triangle recently. ETH/USD has also found support on the 50 EMA on the 4H time frame. The price has also yet to break the ascending channel it has been trading in for the past few months. This gives the bulls more hope that the price could take off from here to kick off a mini altcoin season as early as this week.
The 4H chart for ETH/USD shows that the price is ready to rally from here and the RSI shows that there is ample room to do that. It is still hard to say if the price will eventually end up testing the top of the ascending channel it is trading in but we are certainly going to see a break out of the symmetrical triangle in the near future. Considering that Bitcoin (BTC) has yet to rise further before it tops out, we expect Ethereum (ETH) to follow suit and the price is therefore more likely to break above the symmetrical triangle than below it. That being said, traders should account for both eventualities and manage their risk accordingly. The symmetrical triangle on the chart can also be interpreted as an ascending triangle which would give the bulls more reason to be bullish short term.

Trading is like a war and there are different sides. One side has to lose in order for the other side to win because it is a zero sum game. This is why it is important to know the enemy because there is one. The ‘enemy’ is the whales or market makers. Now, both of them serve a very important purpose in this market because without them there would be no liquidity but when someone has this much control without adequate accountability, it leads to corruption. This is what we have seen in this market in the form of pumps and dumps.

So, while it is important to spot patterns on a chart, it is more important to understand the working behind those patterns and to ask yourself how and why you might be seeing these patterns. The 4H chart for ETH/BTC shows the price trading within a falling wedge inside a large bull flag. This is a very strong bullish setup and it suggests that we might see a breakout in Ethereum (ETH) in the near future. However, it is important to understand the limitations of each time frame. It would be unreasonable to use the 4H time frame to deduce that ETH/USD is going to keep rallying for the next few months. While this is a good setup for a bullish entry short term, it is important to realize that the price remains overbought on larger time frames and is due for a major correction long term. 
Source: Crypto Daily

EUR/USD Near Term Outlook Points To Further Upside In Bitcoin (BTC)

The Fiber (EUR/USD) has recently been through an extensive correction that has now seen it retrace to the top of the descending triangle it escaped from earlier. As the pair has found strong support on the previous resistance turned support, we can expect it to continue rallying from here especially as the pair is likely to just break out of a falling wedge. This breakout could result in a completion of the ABCD pattern drawn on the 4H chart for EUR/USD. Recent stance taken by ECB President, Mario Draghi hints that further rate cuts might be on the way for the Euro, and we could see the pair decline against British Pound (GBP) but it still has room to rally against the US Dollar (USD).
When it comes to Bitcoin (BTC), we are more interested in EUR/USD because this is the one forex pair that influences the price of Bitcoin (BTC) the most. This is because Bitcoin (BTC) is paired to the US Dollar (USD) on the most exchanges and the strength of the Dollar primarily depends on the EUR/USD pair. If the Dollar goes up, Bitcoin (BTC) falls and vice versa. At the moment, we expect EUR/USD to rally from here on out towards early July. This gives Bitcoin (BTC) ample room to complete the existing rally. This short term relief rally in EUR/USD after a major downtrend is most likely to be short lived as the ECB is not interested in a strong Euro. Similarly, the US Dollar Currency Index (DXY) might have topped out short term but it is likely to maintain its uptrend long term.

The 4H chart for BTC/USD shows that the big picture remains intact. The price is currently in the UTAD (upthrust after distribution) part of the Wyckoff distribution cycle. Phase C shown on the chart might take  a while to complete as the price could break past the ascending triangle near term and climb above the 38.2% fib retracement from ATH before it tops out. RSI on the 4H time frame shows that there is plenty of room for the price to do that. This chart clearly shows what the price could do in the next few weeks and months from now.

Once Phase C comes to an end, we will see the price current when it enters Phase D and Phase E. This is when we could see BTC/USD decline all the way to $5,000 or even lower levels to complete the ongoing distribution cycle. Weakness in the price action suggests that BTC/USD might not have much strength to rally significantly past $10,000 but from here on out, a rally past $9,600 appears quite promising. Traders that are looking to short Bitcoin (BTC) might want to add to their positions in the next few days based on the price action. Just as it is a good idea to dollar cost average your buy positions, it is also a good idea to dollar cost average your sell or short sell positions.
Source: Crypto Daily

Ethereum (ETH) All Set To Begin Another Uptrend Against Bitcoin (BTC)

Ethereum (ETH) is likely to begin another uptrend against Bitcoin (BTC) short term as the price has just hit the bottom of a descending channel that also forms part of a bull flag. This formation has a real shot at breaking a long term downtrend against Bitcoin (BTC) short term to kick-off a mini altcoin season. While we do not expect it to last for long, we do see the price to be in a position where it has become easier to push for such a breakout. Even if the price fails to break the downtrend resistance, the upcoming move to the upside could still be very profitable and investors that are already in the market might consider trading some of their Bitcoin (BTC) for Ethereum (ETH) and other altcoins short term.
A lot of good traders agree that most altcoin pairs are just an opportunity to increase your holdings in Bitcoin (BTC) terms. The ETH/BTC pair is a good example of that and there are a lot of exchanges that allow traders to trade this pair without having to convert their Bitcoin (BTC) into Ethereum (ETH). It is important to note that Ethereum (ETH) remains overbought against Bitcoin (BTC) on higher time frames but there is still plenty of room to rally short term. The price could end up breaking past the long term trend line resistance even if it is a fake out or a trap to lure in more buyers so the whales could systemically dump on them. If anything, we have seen in the past few days that some big players are really eager to sell and they are not afraid to dump it all at certain points. There is no reason to think that this could not happen on a larger scale when the price nears levels of $300 or higher.

If we look at the daily chart for ETH/USD, we see an asset that has just tested the lower limit of the ascending channel and is now looking to climb higher towards a higher target. However, if we were to look at it like that without taking another more important view into account, this would be being blindly optimistic. This is because what we as traders and investors should be able to see is the price topping out. As we can see, ETH/USD could form a double top with long wicks to the upside.

It is very tempting to believe as a bull that the price could keep on going up this channel in perpetuity. However, history tells us that this is never the case. Sooner or later, we will see ETH/USD break below this channel to begin its long anticipated downtrend. When that happens, the decline might be a lot faster than we expect as the exchanges would not want to give shorts an opportunity to stack up. Unless you are a good trader, setting stop losses at such crucial points in this market often results in you ending up with no position. So, being bullish at this point could be very risky and we might see the price crash hard especially if it ends up running stops on the way down.
Source: Crypto Daily

Bitcoin (BTC): Why This Could Be The Most Important Week Since Dec, 2018

Bitcoin (BTC) is back above $9,000 and could be near $10,000 by the end of the day. This a very interesting development considering CME Bitcoin Futures closed the week at $8,440. If the price does end up rallying past $9,600 before the weekly close, there will be a huge gap to be filled. That makes this week important but there is more to it than that. If we look at the weekly chart for BTC/USD, we can see that Bitcoin (BTC) is now very close to testing the 38.2% fib retracement level from its all-time high. The price flash crashed from $9,451 to $8,850 but soon climbed back above $9,000. Interestingly, this crash occurred very close to the 38.2% fib retracement level from ATH. This means that a lot of sellers were waiting to offload their bags around that mark.

Now, let us analyze the previous market cycle of Bitcoin (BTC). As we can see, the price formed a temporary bottom just like it did this time and it shot up to test the 38.2% fib retracement level from the previous all-time high. It faced a strong rejection at this level and started to decline soon afterwards. It is important to note that the price managed to climb above the Schiff pitchfork just as it has done this time. It would be very unlikely to see the price close above $10,000. The most likely scenario is that this week is going to determine the fate of Bitcoin (BTC) for the months and years ahead. If BTC/USD tests the 38.2% fib retracement level from ATH and climbs slightly above it to begin its decline afterwards, we might see BTC/USD trade sideways for a few weeks before the downtrend begins.

In most of our analyses on BTC/USD, we have mentioned that it is not just about Bitcoin (BTC) which is why we need to consider major economic factors that could influence the price of Bitcoin (BTC) in the future. The daily chart for EUR/USD shows that the pair is in a strong downtrend. EUR/USD closed the last day of the week below the 50 day exponential moving average. This is a very bearish development and we could see it decline towards the bottom of the descending channel in the days and weeks ahead. As the US Dollar rises against the Euro, we will see the price of Bitcoin (BTC) fall.

Another important factor that could make this week the most important weeks since December, 2018 is that the price could leave one of the biggest gaps we have seen in months. As the daily chart for CME Bitcoin Futures shows, these gaps get filled most of the time. So, if BTC/USD ends up rallying above $9,600 to close the week somewhere close to $10,000, we will have a strong reason to start declining as early as next week. This will set the ground for a bearish trend reversal because when the price starts to decline to fill that gap, it will end up breaking the parabolic uptrend.
Source: Crypto Daily

How High Can Bitcoin (BTC) Go During The Next Bullish Advance?

Bitcoin (BTC) is back above $8,600 and now eyes further upside. This has left a lot of analysts and investors speculating as to where BTC/USD might finally top out. There is no denying that Bitcoin (BTC) has been on a roll for the past few months but this rally will come to an end and that end is going to be brutal, not just for the bulls but also for the bears. Many retail bears have tried to get in front of the recent rally and most of them got liquidated but there are still some retail bears left to hunt before the downtrend can begin. The daily chart shows that the price took off soon as it found support at the bottom of the rising wedge and is now likely to rally towards the top.
As we can see, there is plenty of room to rally within this rising wedge. BTC/USD might even rally past $10,000 but it is highly unlikely to break past $11,000. There are a number of reasons why that may not happen. First of all, there is a strong resistance at $9,587 which is the 38.2% fib retracement level from the all-time high. The last time BTC/USD tested the 38.2% resistance from the ATH of the previous cycle, it ended up declining soon afterwards to begin a long downtrend. So, there is no reason to think this time will be different which is why the price may not rally much above that mark. Second of all, the $10,000 mark is a strong psychological level which means a lot of investors might be waiting to sell there. However, it is also likely that a lot of retail bears have their stops around that mark. This is why we might see a wick slightly above $10,000 but the price is extremely unlikely to close above $10,000.

The daily chart for BTC/USD gives us ample reasons to think that the price may not end up rallying much higher above the $9,600 mark before it tops out. However, there are other reasons to believe why that may not happen. If we look at the daily chart for EUR/USD we can see that it has been in a strong downtrend since early 2018. EUR/USD has been declining within a descending channel but recently it broke the downtrend, rallied above it, and stopped just below the 200 Day EMA.

If we look at this chart, EUR/USD broke the descending channel to form a local top just below the 200 Day EMA and has now closed the last day of the week below the 50 Day EMA. In addition to that, the price has now closed below the 50 Week EMA for two consecutive weeks. These are all bearish signs that tell us that the break above the descending channel was most likely a fake out. We might see EUR/USD struggle to break past the 50 Day EMA next week which might give BTC/USD more time to complete its rally because once EUR/USD begins its next downtrend, Bitcoin (BTC) is not likely to stand its ground for much longer.  
Source: Crypto Daily

Ripple (XRP) Primed For Further Upside Against Bitcoin (BTC)

Ripple (XRP) declined to its 38.2% fib retracement level against Bitcoin (BTC) and is now preparing for a trend reversal. The daily chart shows that the price is still far away from the 50 day exponential moving average but if it rebounds successfully off the 38.2% fib retracement level, we could see it shoot towards the top of the descending triangle. It is important to note that Ripple (XRP) remains at risk of a major correction long term but short-term, it is primed for further upside against Bitcoin (BTC). Considering that BTC/USD is also primed for a rally towards $10,000 in the near future, it might be a good idea to consider going long on XRP/BTC to better capitalize on the upcoming rally. The price could also form a bull flag if it continues to trade sideways for the next few weeks.
As the daily chart shows, there is plenty of room for XRP/BTC to go up. We could see Ripple (XRP) keep investors hoping for the altcoin season even towards yearend. Cryptocurrency investors must realize that just as the price of cryptocurrencies, we have overhyped a few other things. For instance, a lot of analysts lay a lot of emphasis on four year cycles and the upcoming halvening. This is largely based on the assumption that the ongoing cycle will resemble the cycle that preceded it in terms of price growth and the time it takes. However, as we have seen so far, it is becoming clear that we are not in the 2015 part of the last cycle as the ongoing cycle will be longer than the previous cycle. This means that investors should really reconsider that we are on the cusp of a new bullish cycle. That being said, as aforementioned, the price is primed for a short term rally to the upside.

Ripple (XRP) is struggling to break past the 50 week exponential moving average. This week’s close is going to be critical to determine which way the price is going to go for the next few weeks. The trend line resistance is yet to be broken but the price has been consolidating around the 50 week exponential moving average for the past few weeks. As we have mentioned in our previous analyses on Ripple (XRP) a fake out or false break out to the upside cannot be discounted.

There is no reason to think that XRP/USD is about to start a new bullish cycle yet but if this trend line resistance is broken, a lot of retail investors will turn bullish again and will likely get trapped as the whales dump on them before the long awaited correction kicks in. Ripple (XRP) has been the face of controversies for the past few months. The price is currently in a make or break zone. If it breaks this trend lien resistance, we could see it rally higher in the weeks ahead till Bitcoin (BTC) tops out, but if it closes below the 50 week EMA; we could see the price decline towards $0.26 in the weeks ahead.
Source: Crypto Daily

Ethereum (ETH) Ascending Triangle Hints At Major Rally Ahead

Ethereum (ETH) is in a hurry to rally towards $300. The price has currently run into resistance around the $266 mark but the big picture indicates that we are likely to see the price rally past $300 in the days and weeks ahead. The ascending triangle on the daily time frame for ETH/USD could result in the price breaking to the upside in the same manner that it did during May. It is important to note that the price has also found support at the ascending channel and is now likely to rally towards the top of this channel before we see any pullbacks. The price remains above its 21 day exponential moving average and is expected to consolidate above it before its next big move to the upside. RSI also shows that there is ample room for a rally from here. The bulls are trying to regain control as the sentiment is gradually turning bullish.
The Crypto Fear and Greed Index is currently at 67, up from 63 yesterday and 62 last week. This goes on to show that greed is returning to the market and we might see a strong breakout anytime soon. Those that have been following ETH/USD for a while now might have noticed that it has kind of lagged behind against Bitcoin (BTC) compared to other altcoins. This is because Ethereum (ETH) remains overbought against Bitcoin (BTC) on larger time frames. For traders, it would make much more sense to go long on Bitcoin (BTC) than Ethereum (ETH) as the risk/reward is not worth it. Besides, we have seen that Tether (USDT) printing benefits Bitcoin (BTC) first which is then followed by an outflow of money from Bitcoin (BTC) into altcoins like Ethereum (ETH). Some traders are expecting a head and shoulders formation to play out but we do not expect that to happen before the market cap of Tether (USDT) starts to decline.

The weekly chart for ETHUSDShorts is more of a bull’s nightmare. The strong downtrend that kept the bears from pushing higher has now been broken and the number of margined shorts might be expected to rise. As the bearish pressure mounts up, we are likely to see the price of Ethereum (ETH) top out in the weeks ahead after a strong rally to the upside. ETHUSDShorts is expected to keep on rising as Ethereum (ETH) rallies.

The manner in which ETHUSDShorts rises or falls also gives us meaningful insights as to what the market makers are planning. If the shorts begin to stack up at a time when everyone is expecting a drop, we usually see the opposite happen. However, this time the price will be out of room to do the ‘opposite’. Instead, market makers will have to crash the price fast enough to prevent shorts from stacking up. Considering the shape of global economy and the state of the stock market in general and that of the cryptocurrency market in particular, the risks are too high to be buying at these levels even if it means missing out on a mini rally short term.
Source: Crypto Daily

Bitcoin (BTC): When To Expect The Next Big Crash?

Bitcoin (BTC) and Tether (USDT) have a really strong correlation and as we have seen in the past, Tether (USDT) printing is followed by aggressive pumps in the price of Bitcoin (BTC). However, the correlation extends beyond that and even gives us important signals as to when the price of Bitcoin (BTC) might be pumping or dumping well before it even happens. If we look at the Tether (USDT) Market Cap chart on the weekly time frame, we can see that it started to fall around October 08, 2018. Interestingly, the price of Bitcoin (BTC) declined crashed a month afterwards on November 12, 2018. So, how did this happen? Well, the way it works is that Tether (USDT) is printed to pump money into Bitcoin (BTC) and other cryptocurrencies.
When retail investors start buying, the printing and pumping slows down until Bitcoin (BTC) finds a local top. Then the whales or market makers move from Tether (USDT) into Bitcoin (BTC). This is exactly what happened between October 08, 2018 and November 12, 2018. During this time, the market cap of Tether (USDT) falls as money flows out of it into Bitcoin (BTC). When the conversion is done, they move from Bitcoin (BTC) into fiat (USD) and the market crashes. When the price bottoms out locally, they start printing Tether (USDT) again which is then used to pump Bitcoin (BTC) and other cryptocurrencies again. Now, October 08, 2018 showed us what was going to happen next before it even happened. We can spot the same thing again which is why it would be a good idea to get out of cryptocurrencies soon as the market cap of Tether (USDT) starts to decline again.

There are two important things to note here. The market cap of Tether (USDT) could easily rise above $3.5 billion in the near future. Meanwhile BTC/USD can also rally towards $10,000 but it is beginning to dawn on most investors that this is not the 2015 styled rally that they have been anticipating. In fact, even some analysts that think that Bitcoin (BTC) is likely to bottom around the end of the year are being a little too optimistic. We need to look at this beyond cryptocurrency charts and understand what is really going on in the world and what it might mean for Bitcoin (BTC) and other cryptocurrencies.

We have seen for the past few months that the United States is itching for trouble. The current administration is constantly looking for ways to create trouble and as we saw recently, they have been successful so far. We now have conflicts with China and Iran that could escalate into something bigger. Japan showed its intent to keep buying Iranian oil and Prime Minister Shinzo Abe also visited Iran a few days back. Interestingly, there was an attack on two oil tankers in the Gulf of Oman and the US has once again blamed it on Iran. It does not take much to see where all of this is going. We are not short of catalysts at the moment to see a stock market crash and when that happens, it is not going to be a good day for Bitcoin (BTC).  
Source: Crypto Daily

How High Could Litecoin (LTC) Go Before Halvening?

We have seen Bitcoin (BTC)’s parabolic run up but that run up is nothing compared to what Litecoin (LTC) has pulled off in the last few months. For anyone who believes in buying the rumor and selling the news, Litecoin (LTC) was the best investment since the beginning of the year. LTC/USD shot up from $22 and is currently trading around $140. Investors, who bought around the temporary bottom in December, 2018 would have now made more than a six times return on their investment in just a few months! All of this sounds good in hindsight, but the truth of the matter is that nobody expected this rally. Those that were bullish long term believed that it might take a while for the price to rally again and those who were bearish expected a dead cat bounce followed by further downside.
Needless to say, this rally caught most traders by surprise, be it the bears or the bulls. The price is now half way there to its all-time high just as Bitcoin (BTC) is halfway near to its all-time high of $20,000. This comes at a time when Litecoin (LTC) is about to have its most anticipated halvening event in August, 2019. The way it works is that every time a cryptocurrency undergoes halvening, mining rewards are cut in half so it costs twice as much to mine that particular cryptocurrency. By simple supply and demand, the price of that cryptocurrency should go up. However, there is a catch this time. Since late 2018, a lot of people had their eyes fixated on Litecoin (LTC)’s upcoming halvening. The FOMO buying saw LTC/USD outpace Bitcoin (BTC) at times and it appeared as if Litecoin (LTC) and not Bitcoin (BTC) was calling the shots.

This FOMO has now reached such a level that we have not even seen a significant retracement as LTC/USD continues on its parabolic path. If Bitcoin (BTC) goes up, it is reasonable to expect Litecoin (LTC) to go up for now but let us talk about Litecoin (LTC)’s movement against Bitcoin (BTC) now. The weekly chart for LTC/BTC shows that Litecoin (LTC) has been on a steady rise against Bitcoin (BTC) since the beginning of the year. However, after April it declined for five weeks. Since then it has started to rally and has now been up for four weeks straight.

This might appear bullish on surface but if we examine the weekly chart closely, it is clear that LTC/BTC is not only about to form a double top but it is also going to test the 61.8% fib retracement level from its all-time high. This means that LTC/BTC has a very high probability of beginning its next downtrend in the next few weeks. So, in my opinion the halvening FOMO is already priced in and in the next few months leading to the halvening we are likely to see Litecoin (LTC) change hands as the whales dump on overly enthusiastic retail traders that are hoping for Litecoin (LTC) to rocket to the moon after halvening.
Source: Crypto Daily

Ethereum (ETH) Might Be On The Verge Of A Historic Breakout

Ethereum (ETH) might be on the cusp of a historic breakout against Bitcoin (BTC) as the price has just climbed above the 50 Day EMA and is now close to the most critical trend line resistance that ETH/BTC has failed to breach since the beginning of the bear market. If this trend line resistance is broken, altcoin enthusiasts will have a strong reason to believe that the altcoin season has started. While it might be tempting to believe that, it is important to understand the risks here. Ethereum (ETH) is still trading within a large descending triangle against Bitcoin (BTC). Considering that ETH/BTC is already overbought on the daily and weekly time frames, if it falls to the bottom of the triangle, we could see it break below it to decline to a new yearly low.
The daily chart for ETH/BTC shows that Ethereum (ETH) has already been through an extensive correction but if we examine this chart closely, we will see that the period since the beginning of the year to now has mostly been sideways movement. The price has yet to break out of this tight range either to the upside or to the downside. ETH/BTC will now have to make a decision. Either it will have to break past the trend line resistance to possibly begin a new bullish cycle or it will have to decline lower within the descending triangle to possibly fall below it and decline towards its true bottom. Either way, a decision has to be made now as the price has run out of room to trade sideways. Considering that BTC/USD still has room to go up, we expect ETH/BTC to break past this trend line resistance and stage a fake out.

The daily chart for ETH/USD still shows the price struggling to break past the trend line resistance same as ETH/BTC. However, ETH/USD is in a far better position to break this trend line resistance compared to ETH/BTC. This break out would give Ethereum (ETH) the ammunition to shoot towards $300 or higher during the next bullish advance. The price already formed a golden cross on the daily a few weeks back and it could still capitalize on that now that ETH/USD has found support on the 50 day EMA.

Ethereum (ETH) has yet to find its true bottom regardless of how bullish or bearish it may seem short term. We have mentioned in our previous analysis that we are still early on in the bear market and it might be a long time before we see Ethereum (ETH) decline to its true bottom. Meanwhile, a lot of altcoin projects are busy with new developments and announcements to see their coins spike up during this final mini hype cycle before the next downtrend kicks in. This next downtrend is going to be brutal for the altcoin market and we are very likely to see a lot of useless ICO coins get wiped off the market. 
Source: Crypto Daily

Litecoin (LTC) Storms Past $120, Further Upside Likely

Litecoin (LTC) just stormed past $120, beginning the week in green. The price is up close to 9% for the day and is expected to rally further. The price started to rally soon as it broke past the 38.2% fib retracement level. It can now rally all the way towards $166 if Bitcoin (BTC) remains bullish. We have seen cryptocurrencies like Ethereum (ETH) run into strong downtrend resistance but LTC/USD seems to be in the clear for further upside. We have already seen Litecoin (LTC) rally aggressively before after the price found a temporary bottom in December, 2018. The hype around Litecoin (LTC)’s halvening in August, 2019 seems to be the driving factor in pushing the price higher than most large cap coins during each rally.
We have yet to see LTC/USD retrace in the same way as other cryptocurrencies have in the past few weeks but technical conditions still support a rally to the upside. LTC/USD remains well above its 21 day exponential moving average and shows no signs of a slowdown. Bitcoin (BTC)’s yesterday close unnerved a lot of investors and the fear and greed index declined sharply from greed to fear (62 to 46) but Litecoin (LTC) held its ground better than most cryptocurrencies and has now rallied higher than most large cap coins. If the rally continues as BTC/USD aims for a double top, we could see Litecoin (LTC) rally towards its 38.2% retracement from its all-time high. This would be the best time to expect a trend reversal to the downside. For now, the price has ample room to rally and we can expect it to maintain its uptrend as long as the cryptocurrency market continues to rally.

Litecoin (LTC) has ample room to rally against the US Dollar (USD) but it seems that its days of an aggressive bull trend against Bitcoin (BTC) might be coming to an end. The weekly chart for LTC/BTC shows that the price did face a rejection at the trend line resistance before and it declined but it started to rally again after declining briefly below the 50 day exponential moving average. The price could test the trend line resistance again but just as before, it is unlikely to effectively breach it. We could see a fake out that might result in the price momentarily breaking past this line, but it is likely to fall back within the descending triangle.

It is important to note that during key turning points in a market, the retail traders are deliberately confused and baffled by market makers to give them the wrong idea when something is so obvious. We see this happen in markets all the time. The purpose of drawing trend lines on a chart therefore should not be to predict where the price is supposed to reverse but rather to get an idea as to what that trend line means to retail traders and market makers. Once you are familiar with the psyche of both sides, you would be able to make moves that allow you to ride each wave with the market makers while staying under the radar.
Source: Crypto Daily

Ethereum (ETH) Starts The Week In Green, Faces Rejection At Key Trend Line

Ethereum (ETH) started the week in green and rallied hard until it ran into a key trend line resistance. This resistance will be very hard to breach as the price has failed to break past it since the beginning of the year. If ETH/USD falls from current levels towards the bottom of the ascending channel, we could see it break below the channel to decline further. Ethereum (ETH) is already heavily overbought against both the US Dollar (USD) and Bitcoin (BTC) but if it breaks past this resistance, we can see it rally past $300 in no time. There is a lot of bullish interest in the market and a lot of retail traders are still sold on the idea that the bear market is over and that the new bull run has already begun.
It is very tempting to believe that when the price rallies in such a parabolic manner for weeks without any significant pullback in sight. Ethereum (ETH) also broke past key resistance levels and has now also received a green light from the SEC as it is now considered a consumable currency. This came to light during the Kik case and is very helpful to the entire cryptocurrency space because most altcoins are or were based on the Ethereum (ETH) blockchain at some point. The way last week closed has brought short term fear into the market as the Fear and Greed Index is hovering around 46. However, today’s close will be critical in determining Ethereum (ETH)’s definitive direction for the next few weeks. We could see some sideways movement for a while but ETH/USD now has to break past the trend line resistance or face rejection and fall back towards the bottom of the ascending channel.

Ethereum (ETH) appears to be out of room to rally against both the US Dollar (USD) and Bitcoin (BTC) but we could see a fake out as we have in the past. The 4H chart for ETH/BTC shows that the stage is set for such a breakout. We could see the bull flag on the 4H chart result in ETH/BTC breaking to the upside short term only to see it followed by a strong correction later on. This is a highly probable outcome because such moves around key turning points often allow market makers to perform a liquidity hunt, shake out the fickle traders and then do what is supposed to happen in the first place.

 The price of Ethereum (ETH) remains heavily overbought against both the US Dollar (USD) and Bitcoin (BTC) which is why a strong correction in the long run is inevitable. In fact, we think the price has yet to go down further before it finds its true bottom. However, until that begins to happen, the price still has plenty of room to rally short term especially in a pump and dump manner. The manipulation that we saw during the past few weeks might come into play again if the price manages to break past these key resistance levels.
Source: Crypto Daily

Bitcoin (BTC) Has Room To Rally Till The S&P 500 Index (SPX) Tops Out

The S&P 500 Index (SPX) closed last week with a bullish candle, the likes of which we have not seen in the past two years. This is really good news for Bitcoin (BTC) and other cryptocurrencies as it means that the stock market now has room to rally which means BTC/USD has ample room to revisit $9,000 again and most likely rally towards $10,000. The weekly chart for the S&P 500 Index (SPX) shows that the index tested trend line resistance two times before and is now likely to test it once more. This retest will give BTC/USD room to rally because we have seen in the past that when the S&P 500 rises, BTC/USD has room to rise but when it starts to fall, BTC/USD is forced to decline. This is because Bitcoin (BTC) still remains a very high risk asset.
Both the S&P 500 Index (SPX) and Bitcoin (BTC) are due for major declines in the months ahead. However, we will continue to see uncertainty in both markets short term because when something becomes too obvious, market makers like to throw the average investor off with short term uncertainties. We just saw the same thing happen with BTC/USD. There was a head and shoulders on the 4H timeframe but it was unnecessary to even talk about it because it was too obvious and thus too insignificant. We saw some well-known traders post about it but we just saw how it turned out. The price started the week in green, invalidated that H&S formation and is now eyeing a break past $8,000. This is contrary to what most retail traders expected because the people who were calling for a rally to $10,000 were expecting a fall to $6,000 this time.

Financial markets work in very predictable ways but so do retail traders. Just as the market repeats the same patterns over and over again, retail traders tend to make the same mistakes over and over again. For instance, we have seen a dozen times just in the past few months that whenever the majority expects something to happen, the opposite usually happens. A lot of traders expected the price to face resistance near $6,000 but it ended up shooting past it even to the surprise of most bulls.

Similarly, a lot of traders expected BTC/USD to rally towards $10,000 but it declined and made them think it is going down further. Just when they started to believe that, the price started to rise again. It is important to realize that there is one thing that repeats over and over again and that is the market makers profiting off the naiveté of amateur traders. The way to be on the right side of a trade requires an understanding of the thinking behind every move. Chart analysis is important but the internet is full of charts on anything and everything. It is how you analyze those charts and what you make of them that make all the difference. 
Source: Crypto Daily

Bitcoin (BTC) About To End The Week In Red But Rally Towards $10k Still In Sight

Bitcoin (BTC) is about to close the week in red for the first time in six weeks. The price has closed five weeks consecutively in the green as it rallied in a parabolic manner the past few months. Investors are now confused what this would mean for BTC/USD in the weeks and months ahead. Short term, this does not change much as a rally towards $10,000 is still in sight. The daily chart for BTC/USD shows that the RSI and MFI indicators now indicate that there is ample room for a rally to the upside. The price cooled off after an aggressive run up and is now likely to consolidate before its next big move to the upside. The likelihood of further downside at this point remains low as we do not expect BTC/USD to break the ascending wedge just yet.
The price is likely to keep on trading within this wedge as long as it does not touch the $9,600 level or the 38.2% fib retracement level from ATH. As the price attempts to test the 38.2% fib retracement level, it will have to climb atop the 21 day EMA. This level will then serve as a temporary support and the price will move sideways for a bit before declining below this level and eventually below the rising wedge. There is no denying that BTC/USD is due for a major correction long term but short term its bearish outlook has changed. The price has cooled off significantly and is now ready for another rally to the upside. Bitcoin (BTC) has yet to see maximum FOMO and I think we will see it soon as the price nears the $10,000 level. Previously, the $9,000 level was rejection strongly and the price ended up declining even below $8,000 after testing that level, but this time BTC/USD will be in a better position to retest that level.

The 4H chart for BTC/USD shows that the price is still trading in an ascending and descending channel at the same time. The downtrend resistance on the RSI indicates that if the price fails to break past this descending channel, we could see the ascending channel being broken short term. We have already seen the price break this channel a few times in the past but the price was quick to get back into the channel.

We could see a similar break below this channel as we did in May, 2019 but that will most likely be a fake out as the price is more likely to rally towards $10,000 from there in the weeks ahead. Bitcoin (BTC) is long overdue for a major correction to the downside but it has to test the 38.2% fib retracement level before it declines further. Even if it ends up declining at this point, it is extremely unlikely to begin a new downtrend towards its true bottom before rallying towards $10,000. The Fear and Greed Index was at 27 two days back. Today, it is hovering around 62. We are very likely to see this index rise towards a new all-time high in the weeks ahead as investors FOMO into the market.
Source: Crypto Daily

Litecoin (LTC) Might Rally Hard Short Term If Price Breaks Past $120

Litecoin (LTC) has rallied hard the past few months but it might still have ample room for further upside. The weekly chart for LTC/USD shows that the price recovered quickly when it declined this week. We have yet to see it revisit the trend line support but it seems more determined to test higher levels first. If Litecoin (LTC breaks past $120, we could see it rally all the way towards $166. The price will likely top out before it can reach that mark but we might see a retest of the 38.2% fib retracement level from all-time high just below $160. After that, we can expect LTC/USD to decline below $80 and settle around $77 at the 61.8% fib extension level from the temporary bottom.
The long term outlook of Litecoin (LTC) is clear despite the recent buying frenzy. We could see the price rally all the way to $157 but it has yet to form new lows for the year. We could see the price find its true bottom this year or the next but it is not done ending the bear market just yet. Traders might look for opportunities to long the price towards the next bullish target short term but investors who are looking to accumulate for long term might be better off adopting a wait and see approach at this point. Even less experienced traders should wait for the price to top out and then short it instead of chasing the price for a small but very risky move to the upside. RSI is trading in overbought territory on the weekly time frame but we are yet to see it top out.

Litecoin (LTC) is also in serious trouble against Bitcoin (BTC). The weekly chart for LTC/BTC shows that we could see Litecoin (LTC) form new lows against Bitcoin (BTC) in the months ahead. That being said, the weekly chart for LTC/BTC also shows room for a rally to the upside for the time being. While Ethereum (ETH) does not have much room to rally against Bitcoin (BTC) even short term, Litecoin (LTC) does have room to rally against Bitcoin (BTC) short term. This means that we could see Litecoin (LTC) continue to outpace Bitcoin (BTC) during any near term rallies.

We saw the market reach mania levels during late 2017 to early 2018 period. The same has happened once again during the past few weeks which is why investors need to be very cautious. The price could rally short term but that must not be confused with the beginning of a new bull run. I think the price is a long way from beginning a new bullish cycle just yet. We are going to see a continuation of the bear market at least for the remainder of this year. The ongoing cycle has to be longer and not shorter than the previous cycle. It will be interesting to see how Litecoin (LTC) performs during the next few months considering that it has its next halvening in August, 2019.
Source: Crypto Daily