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2018.07.10 - Technical Analysis

2018-07-10 17:30:04.0


The sentiment in cryptocurrencies is improving as speculations that the market is preparing for another bull run attract buyers, although the Bancor attack could compromise the recovery in short-term due to increased worries on safety.BTC/USDT extended gains to the 50-dma (6715). Trend and momentum indicators turned positive hinting at a further recovery in the short-run. The key resistance is seen at 7004 (major 38.2% retracement on May – June debasement). Clearing this resistance should signal a short-term bullish trend reversal and encourage a further rise toward 7500 and 7995 (major 50% and 61.8% retracement).

On the downside, dip-buyers are touted near the 6000-level.

It remains yet to be seen if the latest recovery could lead to a significant upside move in the medium term. If this is the case, then Bitcoin and altcoins could enter a bull market in the second half of the year.


The sentiment in Ether remains momentarily cautious after a cyber-attack hit Bancor, a decentralized crypto-exchange, and placed $12 million worth Ether in danger, as well as $1 million worth NPXS and $10 million worth BNT, which are ERC-20 tokens.

ETH/USDT is testing the 500-offers. The improved sentiment across the sector should give a further support for a rise above this psychological level. Clearing the 500-resistance should pave the way toward 556, the critical 38.2% retracement on May – June decline, which should distinguish between a consolidation near 500 and a further recovery toward 605 and 653 (major 50% and 61.8% retracement).


BCH/USDT trades in a tight range around 730, the weekly pivot level. A further recovery is certainly around the corner, with bulls targeting 800 and 830 (weekly resistance) levels in the continuation of an improved sector-wide sentiment.

Bitcoin Cash has performed poorly compared to Bitcoin, BCH/BTC remains comfortably below the 200-dma, which could be seen as a window of opportunity for a further recovery, given that from a fundamental perspective, Bitcoin Cash offers scaling and security measures that other platforms don’t.


Little has changed in Litecoin sentiment since last week. LTC/USDT remains rangebound between 75/90 area. The key resistance is eyed pre-100. Intermediary resistances are presumed at 91 and 95, weekly resistance levels. Litecoin should successfully fight back the 110-offers (major 38.2% retracement on May – June decline) to step into the short-term bullish consolidation zone.

Despite offering a better alternative than Bitcoin for digital transactions, Litecoin often suffers from a lack of solid believers. From a value perspective, Litecoin continues losing field against Bitcoin. We maintain our cautious view.


MDP/USDT advanced to $6.97 on the back of a sustained demand following its launch on June 29. Trading volumes rose to $200-300 million on daily basis. We expect a gradual rise in demand as trading altcoins versus MDP will soon offer lower transactions costs for traders.

Last week’s solid overbought conditions encouraged a downside correction, which has shortly pulled the price of MDP below the $4 level, offering a window of opportunity for traders looking to benefit from a positive retracement.

MDP/USDT is currently testing the $5-resistance, the major 38.2% retracement on past week’s downside correction. Clearing this resistance should encourage a further rise to $5.4 and $5.7 (major 50% and 61.8% retracement) before a renewed attempt to the $7 level.