This market analysis is brought to you by OKEx, for more insights visit their blog.
Most cryptocurrencies have seen price drops in the last few hours, even though some recovered. The cryptocurrency ecosystem is seemingly entering the weekend on a neutral point, even though altcoins are gaining strength and bitcoin is in an uncomfortable spot.
OKB
OKEx’s proprietary exchange token has really started to cook. A double bottom on the OKB/BTC trading pair marked the bottom for the token, and a couple of bullish waves up have completely obliterated the historic resistance that has contained OKB since the start of May.
(source: Charts.cointrader.pro)
About 100% gain has been made during July from the bottom. This bullish momentum could easily continue – looking at the 12-hour chart, we see that the crypto is solidly trending in deeply overbought territory with little sign of slowing. Even the histogram is flattening out on the latest swing up, and the RSI could easily put in another higher high.
(source: Charts.cointrader.pro)
But, it would probably be healthier to cool off and retest the area at around 21,000 satoshis. Either way, OKB looks to have started a solid and lengthy uptrend.
Bitcoin
After falling out of a consolidation pattern above the 2019 moving averages at mid-month, the leading crypto has been mostly trending down in the short-term, and has repeatedly been rejected from some key levels during the week – and the short-term outlook seems bearish.
Looking at the daily Bitcoin chart, we see that after first losing the critical 2019 exponential moving average (EMA) – which had held Bitcoin for all of 2019 so far – BTC is now getting trapped below the important and common 55 EMA.
Bitcoin is currently wedged into an uncomfortable spot, between a local downtrend which has held all month, and a bigger uptrend from dating back all the way to April. Volume has slowed to a trickle, and the leading crypto is almost out of time to bounce out of this trap. If it doesn’t, sub-$9,000 prices are likely.
Litecoin
Litecoin is another story, and is finally starting to show strength on the LTC/BTC pairing after a very steep retracement following April and June highs/double top.
The basic question for the leading altcoin is: has it reached bottom. The answer is quite possibly yes, after a strong divergence with hammer candle bottom on July 16 was followed by a strong bounce back into important support.
RSI has seen higher lows and highs on the recent cycles, and the histogram has shown somewhat choppy growth on the upside. Volume has not followed up the gains, though, and the 21 EMA has stopped Litecoin hard on the daily chart. A close above the 21 could signal a breakout here – if the requisite volume can be attracted.
Ethereum
The leading smart contract crypto is not in a terribly different situation: like Litecoin, Ether has also been searching for a bottom after a serious breakdown in price on the BTC pairing – although it recently broke multi-year support that many considered a “capitulation” style event.
A solid trend of bull divergence on the RSI resulted in a bottom, for now, being found and staunchly defended above ₿0.021. The 9-day EMA has been retaken for now, although as with Litecoin, significant volume is yet to step in and change the medium-term trend.
The MACD/histogram looks decent on the daily, with both having crossed into bullish territory. MACD is fanning upwards well, and the histogram is ticking up but starting to arc downward. These indications suggest that Ether is probably not about to break out hard to the upside. A longer period of consolidation and strength building maybe be necessary to convince the market that a bottom has been found – if one has been.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
