Technical Analysis: Bitcoin, XRP, Ethereum
Konstantin Kaiser | Jun 05, 2019 04:28AM ET
The cryptocurrencies market and Bitcoin is in the midst of a new bull market. However, every trend corrects to the opposite direction and for now, such correction was overdue for Bitcoin and Ethereum. Let’s find out where Bitcoin, Ethereum and XRP are heading next and if there might be great opportunities for cryptocurrency traders.
BTC/USD Daily Chart
Bitcoin attempted to break $9000 three times with a wick up to $9158 of which each attempt resulted in a harsh rejection. Thus, the $9000 mark is certainly a strong resistance which will need more bullish momentum for a positive break to the upside. For now, Bitcoin seems likely to continue its correction wave. Thus, the retracement could reach as low as $5450, where the golden pocket is located at, which would be an excellent buying opportunity. But for now, Bitcoin is still very bullish in the bigger picture which makes it rather unlikely that Bitcoin reaches below the $6000 support.
In fact, Bitcoin could reach as low as $7400, where the high of September established support, however, it seems more likely that Bitcoin is heading to $6800, where the 0.382 fib level is. Since there is a very strong support area between $6000-$6800, Bitcoin will most likely hold these levels and continue its uptrend afterward.
For now, the retracement target is around $6100-$6850. As soon as Bitcoin continues its uptrend again, Bitcoin finds major resistance at $9500-$10.000, where the 0.382 fib extension level and the psychological mark of $10.000 both act as strong resistance. If Bitcoin breaks those levels, the gates are open to the minor support at $11.700, which will most likely be broken very easily and finally to $13.500, where major correction is likely to follow as there is the golden ratio fib extension level of the entire bear market located at.
ETH/USD Daily Chart
Due to its positive correlation to Bitcoin, Ethereum follows the path of Bitcoin. With a bearish divergence being formed previously, an upcoming downturn was indicated by the RSI. The MACD crossed bearishly and the histogram ticks lower. It seems likely that Ethereum continues its recent downward movement. Ethereum should find support between the psychological mark of $200 and the 0.382 fib level at $210. In fact, Ethereum finds major support between $170-$220 and due to the bullishness of the market, it seems likely that Ethereum holds above these levels.
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$200-$220 could definitely be an interesting buying target. As long as Ethereum stays above $155, the bull trend remains intact. In fact, a golden ratio retracement down to $155 would be an excellent buying opportunity.
If Ethereum finds support and continues its uptrend, it finds its next major resistance between $360-$420, which will be the next target as soon as Ethereum broke the psychological mark of $300.
XRP/USD Daily Chart
XRP is a very interesting cryptocurrency to watch right now. While the trendline was bearishly broken just recently, the 0.382 Fibonacci level held as support so far. With the MACD crossing bearishly and the histogram ticking lower, it seems likely that XRP retraces down to the golden ratio level at 0.$365, where a re-entry could be interesting.
Interestingly enough, the golden pocket level is exactly at the previous high, which acts as additional support.
There are reasons to believe that XRP is outperforming Bitcoin by far in the upcoming months.
XRP/BTC Monthly Chart
This is due to the fact that XRP sits exactly at the fib time zone. It can be observed that the fib time zone is located at the exact low before a massive uptrend followed. The current outlook gives us reason to believe that XRP will surge tremendously against Bitcoin, which means, if Bitcoin gains too, which is the current status of my technical analysis, that XRP will outperform Bitcoin by far versus USD.
Thus, XRP remains my best bet for the upcoming months and bull market of 2019.
Having said that, this only the outlook by technical analysis. But there is more to Bitcoin than just a speculative object, such as Bitcoin overtaking the role of a superior store of value than gold, as instantaneous payment solution as well as bringing transparency and privacy into conformity. Furthermore, Bitcoin is not the only useful application of the blockchain, as there are projects working on monetary systems which are using real assets of gold and silver as the basis for its cryptocurrency, as for example, Kinesis. These currencies provide a 1:1 allocation of physical bullion, with the transaction, fees accumulated whenever the currencies are sent, spent or traded and then proportionately redistributed to the Kinesis currency and token holders as a velocity-based yield. These yields grow as the user base grows and recur forever, creating a monthly income for users, against everyday transactions and holdings.
As projects like these might find mainstream adoption, for example, due to the initiation of UK and EU debit card programs, which was done by Kinesis with Contis Group, we might finally pave the way to a new digital gold standard.
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