Starting on Tuesday, the 17.07.2018 cryptocurrency market was in a consolidation stage after a strong increase in capitalization, which eventually rose from $ 245 billion to almost $ 300 billion. At the time of writing (23.07.2018), the crypto market capitalization is $ 288 billion.
The price of bitcoin over the past week ranged from $ 7200,00 - $ 7700,00, while testing an important resistance level of $ 7594,76 - $ 7785,31.
Fig. 1 - BTCUSD, Daily
At this level there are two more important resistance for the price movement. The first is the long-term trend line (red sloping line). The second resistance is a heavy exponential moving average with a period of 200. If the price is fixed above all the indicated resistances, it will be possible to talk about the consolidation of the uptrend and domination of the bulls in the market, and the next target for the price will be the $ 9946,43 mark. An additional positive factor for the bulls will be the intersection of the fast EMA24 slow EMA50 from the bottom up.
Since the resistance is strong enough, do not forget about the possibility of a reversal. So, if the price forms a correction, then fixing below the support level of $ 6856,59 will inform about the reverse fixation of the bear positions.
Ethereum
The past week turned out to be not so positive for Ethereum, since, despite the growth of Bitcoin, it showed a downward trend. During this time (from 16.07.2018/51.7/18.07.2018), the capitalization of the second cryptocurrency decreased from $ 47.1 billion (23.07.2018/44,8/513,43) to $ 466,90 billion (XNUMX/XNUMX/XNUMX). At the same time, the minimum value for this period was $ XNUMX billion. The price, in turn, decreased from $ XNUMX to $ XNUMX.
Considering the price chart, you can see how the movement is formed within the upward inclined channel.
Fig. 2 - ETHUSD, Daily
It also has one horizontal resistance level ($ 486,02 - $ 515,40) and one horizontal support level ($ 432,08 - $ 406,64). In the case of penetration and consolidation above the first price will continue its upward movement, entrenched also above the heavy EMA50. But immediately after that, she will meet another level of resistance $ 548,94, as a result of breaking through which the movement will continue to the level of $ 629,05. Otherwise, consolidation below the $ 432,08 support level - $ 406,64 will tell about the domination of bears for this asset and continue the price movement to the $ 359,00 mark. But here the price will have to leave the downward sloping channel, which can also significantly strengthen bearish sentiment.
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Egor Tishin, TSI Analytics analyst, specially for Coinspot
The review reflects the subjective position of Coinspot partner analysts with regard to personal trading style. Cryptocurrency trading carries increased risks due to market specifics. The editors are not responsible for your trading decisions and recommends trading only for those funds, the loss of which will not be critical.