After the recent rally in crypto markets, most analysts believe that the bear market is over. Barry Silbert, Digital Currency Group founder and CEO, opined that the crypto winter is over and the markets have entered a “crypto spring.” Silbert pointed out that institutional involvement has grown a lot since the 2017 bull phase, which is the cause of his bullish stance.
Contrary to this opinion, blockchain researcher Tone Vays said that he does not trust the current rally as it is not backed by considerable external money investing in crypto markets. According to him, the existing long-term investors have supported the rally from the lows and if their conviction waivers, the markets can plunge once again. Still, he advises people to hold “some bitcoin.”
We believe that the bear market is over and the markets will form a higher base during the next fall. However, we are against chasing prices higher. Instead, we believe that the markets will give enough opportunities to buy on dips. Hence, traders should be patient and buy when the risk to reward ratio is in their favor.
Let’s take a look at the charts and see if we find any buying opportunities at current levels.
Bitcoin (BTC) has broken out of the 20-day EMA after struggling to sustain above it for the past few days. This shows fresh demand at higher levels. If the price maintains above $8,120, the bulls will try to push it to $9,053.12. A breakout of this level will invalidate the head and shoulders (H&S) pattern, which is a positive sign. The next target to watch on the upside is $10,000.
On the other hand, if the BTC/USD pair fails to sustain above the 20-day EMA, the bears will try to sink it to the neckline of the H&S pattern. If the price breaks down and closes (UTC time frame) below the neckline, it will complete the H&S pattern that has a target objective of $5,371.12.
However, the bulls might try to provide support close to $7,413.46 and below it at the 50-day SMA. If both these supports break down, a fall to $5,900 is probable where we expect strong buying. Currently, we do not find a reliable buy setup, hence, we do not suggest a trade in it.
Ethereum (ETH) is stuck inside a large range of $225.39 and $280. The 20-day EMA is flat and the RSI is just above the midpoint. This suggests that the consolidation might continue for a few more days.
The ETH/USD pair has broken out of the 20-day EMA. It will now try to move up to $261.59 and above it to $280. A breakout and close (UTC time frame) above $280 might propel it to $322.06 and above it to $335.
However, if the pair fails to break out of $280, the bears will try to sink it back to $225.39. A breakdown of this support and the 50-day SMA will attract further selling. The next support on the downside is way lower at $167.20. We do not find any reliable buy setups at the current levels, hence, we are neutral on the digital currency.
The bulls have been trying to keep Ripple (XRP) inside the symmetrical triangle but are facing stiff resistance at the 20-day EMA. For the past two days, the cryptocurrency has formed inside day candlestick pattern, which shows that the volatility is shrinking.
Presently, the bulls are trying to push the XRP/USD pair above the 20-day EMA. If successful, a move to $0.43196 and above it to the resistance line of the triangle is possible. Conversely, if the price turns down from the 20-day EMA, the bears will try to sink the pair below the strong support of $0.35660. Therefore, traders holding long position can keep the stop loss at $0.35.
Litecoin (LTC) continues to be in a strong uptrend. It easily climbed above the resistance line of the ascending channel, which shows strong demand. Both the moving averages are sloping up and the RSI is in the overbought zone, which confirms that the bulls are in command.
There is a minor resistance at $140.3450. If the LTC/USD pair struggles to break out and sustain above it, traders can book partial profits closer to $140 and trail the remaining long position with stops just below the 20-day EMA. As the moving average moves up, stops can be raised higher. The target to watch on the upside is $158.91 and above it $184.7940.
The digital currency will lose momentum if it turns down and slides back into the ascending channel. A break below the 20-day EMA will be a negative sign and can attract further selling.
Bitcoin Cash (BCH) has been clinging to the 20-day EMA for the past few days. We should soon see a large range move either to the upside or to the downside. A breakout and close (UTC time frame) above the 20-day EMA can carry the price to $451 and above it to the resistance line of the ascending channel.
On the other hand, if the BCH/USD pair turns down and breaks below the 50-day SMA, it can correct to the support line of the channel. We anticipate strong buying at this level. If the price rebounds sharply from it, we might suggest a long position. The stop loss can be kept just below the channel. However, if the pair plunges below the channel, it will turn negative and can drop to $280.
EOS is finding support at the 50-day SMA, which is sloping up and is facing resistance at the 20-day EMA, which has started to turn down. This shows that volatility is tightening. We should soon see the volatility expand. However, it is difficult to predict the direction of the expansion. Hence, we can not take any predetermined action.
If volatility expands to the upside and the EOS/USD pair climbs above the 20-day EMA and $6.8299, it can move up to the resistance line of the channel and above it to $8.6503. As the risk to reward ratio of this trade is attractive, we maintain the buy proposed in an earlier analysis.
On the other hand, if the bears sink the pair below the 50-day SMA, it can drop to the support line of the channel. If this breaks down, a fall to $4.4930 is probable.
Binance Coin (BNB) has broken out of the downtrend line and has triggered the buy recommendation given in the previous analysis. It can now move up to $38.6463356 and above it to the resistance line. If the bulls can push the price above the resistance line, a rally to $46.1645899 is possible. Both the moving averages are sloping up and the RSI is in positive territory, which shows that bulls have the upper hand.
Contrary to our assumption, if the BNB/USD pair fails to sustain above the downtrend line the bears will try to sink it below the 20-day EMA. If successful, the next stop on the downside is the 50-day SMA. This has acted as strong support in the past few months, hence, we expect it to hold. Therefore, the stops on the long positions can be kept at $28.
Bitcoin SV (BSV) has been holding above the 38.2% Fibonacci retracement level of the recent rally for the past three days. Though this is a positive sign, the failure of the bulls to secure a strong bounce shows a lack of buyers at higher levels.
If the bears plunge the BSV/USD pair below $176.083 and the 20-day EMA, the uptrend will lose momentum. The next support is at $152.015, which is 50% retracement level of the recent rally. If this support also gives way, the fall can extend to $134.360.
Contrary to our assumption, if the pair rebounds sharply from the current levels or from the 20-day EMA, the bulls will try to carry it to $240, above which a retest of the lifetime highs is probable. The digital currency will pick up momentum after it sustains above $254.
Stellar (XLM) is facing stiff resistance at the 20-day EMA. If the bulls fail to sustain the price above the 20-day EMA, the bears will try to sink it below the strong support of $0.11507853.
If the XLM/USD pair breaks down of $0.11507853, it can correct to $0.08558676, but if the bulls succeed in pushing the pair above the 20-day EMA, it can rally to $0.14861760. This is a critical resistance. A breakout and close (UTC time frame) above this level will complete an inverse H&S pattern that has a target objective of $0.22466773. We will wait for the price to sustain above $0.14861760 before proposing a trade in it.
Cardano (ADA) is range-bound between the 50-day SMA and $0.10. It sharply bounced off the 50-day SMA on June 10 and is nearing the overhead resistance of $0.10. A breakout and close above $0.10 will complete the rounding bottom pattern that has a target objective of $0.22466773.
Previously, the cryptocurrency had broken out of $0.10 on three occasions but failed to sustain it. Therefore, we will wait for the price to break out and close (UTC time frame) above $0.10 before suggesting a long position in it.
If, however, the ADA/USD pair fails to breakout and sustain above $0.10, it will extend its stay inside the range for a few more days. It will turn negative if it reverses direction and plummets below the 50-day SMA. The next target to watch on the downside is $0.057898.
Market Update: Bitcoin Heading Towards $13k, XRP Struggles to Maintain $0.48
Bitcoin has again gained another $1,000 to surpass $12,000 and is now approaching $13,000. While BTC holders are celebrating, XRP seems to be struggling to break above key resistance at $0.477. It is currently in a struggle to climb above a lower resistance at $0.47 at the time of writing this report.
It had earlier consolidated above the $0.4550 and $0.4580 levels and settled above the 23.6% Fib retracement level of the downward move from the $0.5086 high to $0.4455. At the time of writing, the bulls had succeeded in closing above yesterday’s trend line and broken through the resistance at $0.47.
XRP is now faced with the next resistance at $0.4770 which is caused by the 50% Fib retracement level of the downward move from the $0.5086 high to $0.4455 that prevents gains. If there is a successful break above this level then the next resistance will be $0.48, victory over which will create a free rise to above $0.485 and $0.49.
XRP could also break above another resistance at $0.5 in the short term and that could take the price even higher. If $0.48 gets too strong to break then an easier way may be a downward move to initial support at $0.46 and $0.458 and a further crash to the lower $0.445 support area before another attempt to push upward.
Meanwhile, many other altcoins are in the same condition as XRP with some struggle to continue in uptrends. ETH has so far maintained a relatively steady rise alongside BTC, reaching a price of over $330 at the time of writing.
As its gains seem to correlate with that of BTC which is expected to break above $13,000 before any major pullback, ETH could be going as high as $340 before the pullback. As for XRP and other altcoins, the pullback could worsen things and make them start all over again, but only time will tell.
BitMax.io [BTMX.com] Announces Listing of Standard Tokenization Protocol [STPT]
BitMax.io [BTMX.com] has announced the listing of STPT, the native token of Standard Tokenization Protocol, a decentralized network for the tokenization of an asset.
Trading for the STPT/BTC and STPT/USDT pairs will be enabled on Tuesday, June 25th at 10:00 am EDT.
As part of the listing collaboration, the BitMax.io team will provide strategic support to the STP team throughout the platform launch.
Dr. George Cao, Co-Founder & CEO of BitMax.io, stated,
“STP is a necessary project for the overall space. Their focus on unlocking value and building an ecosystem of high-quality assets in this industry made our decision to list them very easy.”
With the listing of STPT, BitMax.io will strengthen its leading trading platform status by continuously adding solid projects, as well as provide more diversified global exposure to the Standard Tokenization Protocol.
About Standard Tokenization Protocol and STPT
Standard Tokenization Protocol’s STP-Standard is an open-source standard that defines how tokenized assets are generated, issued, sent, and received while complying with all necessary regulations. The protocol allows assets of all kinds to be tokenized in a way that makes them fully compliant across jurisdictions and transferable across any ERC20 platform.
Tokens built on top of the STP-Standard will use the protocol’s on-chain Compliance Validator to verify compliance with relevant regulations [i.e. KYC, AML, Accreditation, etc.] as well as any issuer-specific requirements [i.e. ownership concentration, holding periods, voting]. The Validator Committee will serve an advisory function to ensure the Compliance Validator is enforcing the most up-to-date legislation at all times.
About BitMax.io [BTMX.com]
BitMax.io is the industry’s next-generation digital asset trading platform that provides a broad range of financial products and services to both retail and institutional clients across the globe.
This innovative trading platform was founded by a group of Wall Street quant trading veterans and built upon the core values of blockchain, transparency, and reliability, to deliver high-quality client services and trading experience.
BitMax.io always strives to provide its global users with a comprehensive set of trading products. BitMax.io enabled margin trading on Feb. 14th, 2019. The margin trading function is another step forward from a product-offering perspective to better serve their dynamic trading needs.
For BitMax.io users who understand and acknowledge the risks involved in margin trading, they are now able to leverage their tradable asset for a potential higher return on investment through margin trading with sound risk management. The list of digital assets that can be traded on margin has increased from the initial four to 18 different tokens, even including BTMX.
It’s another pioneering move for BitMax.io to enable margin trading in its own native token. It expands the utility functions of BTMX, and incentivizes liquidity on the platform. [The margin trading function of BitMax.io is not available for North American markets.]
Similar to the innovative margin trading launched on BitMax.io, the introduction of this unique Volatility Card has again showcased the team’s deep understanding of the inner working of the capital market and their advanced expertise in financial product design.
BitMax.io Volatility Card is the first volatility-linked derivative product of this platform that allows global users to forecast and trade off price fluctuation of underlying major coins during preset time windows in a simple yet effective way. Named as Turtle and Bunny Card after Aesop’s fable – the Tortoise and the Hare, the card has a quasi-option structure for underlying trading pairs yet largely simplified payout form. Users can purchase a different card for the prediction of price movement either within a certain range [Turtle Card] or above a certain range [Bunny Card].
Those who predict the correct range of price movement will receive the payout equivalent to the notional value of the card. Volatility Card uses a simplified payout form without the complication of settlement and clearing issues common for real currency options. Users just simply select which card to purchase to trade on their view of the volatility of underlying asset either within or above a certain range.
It is easy to understand and use for all types of traders with the need for either very short-term momentum trading or partial risk hedging against outsized price swing in very volatile market conditions.
BitMax.io has experienced significant growth since its launch in 2018 and is deeply committed to providing a high-performance, client-centric trading platform to its global client base. Currently, the platform has over 180,000 registered users, with over 53,000 active community members. The listing of STPT not only broadens its trading pair scope but also helps to attract more volume and users to the platform.
Tron marks Independence Day, June 25: TRX/USD double-top pattern spotted
- In under a year, Tron has surpassed Ethereum daily transaction recording 1.5 million transactions.
- Correction from $0.0400 resulted in declines under $0.0390 with $0.0380 functioning as the immediate support area.
The Tron Foundation is celebrating one year since the first Independence Day. June 25, 2018, was the day that Tron launched its mainnet. The date is also used to mark the genesis block for Tron blockchain. According to the founder of Tron, Justin Sun, the network has been able to hit various milestones since then.
Some of these include an increase in staff from just 10 to 400 spread around the world. Besides, this number is expected to rise to 600 by the end of 2019. The development team has been able to release 22 updates on Tron protocol. The network has 3.1 million addresses on the mainnet and supports 1.5 million transactions daily catching up with Ethereum in less than one year. The decentralized applications ecosystem has over 500 DApps that record 50,000 active users.
These including other milestones have helped push Tron back into the top ten with a market cap of $2.5 billion. Tron is currently ranked as the 10th largest asset. It has an exchange-traded volume of $990 million and a circulating supply of 66,682,072 TRX.
Looking at the 4-hour chart, Tron recovered from June lows around $0.0291 and even retested the resistance at $0.0400. However, correction above this level is hampered leading to the formation of a double top pattern with the highs achieved in the first week of June around $0.0400. Meanwhile, a correction has resulted in declines under $0.0390 with $0.0380 functioning as the immediate support area. Other key areas to look out for are $0.0360 support, $0.0320 support area and June lows at $0.0291.
TRX/USD 4-h chart