What can be said about Cryptocurrency that has not been said or talked about before? Crypto has been the global talking point over the last 12 months and I am sure we all know that guy that bought Bitcoin (BTC) at $1 and sold it at $20 000?
Outlook: The price action has moved significantly lower over the last couple of months and there might be more downside for cryptocurrencies to come. We have seen an increase in countries around the world adding measures on the regulation of cryptocurrencies. The most recent are entities regulated by the Reserve Bank of India (RBI), banks included, will terminate their existing relationships with firms or individuals dealing in cryptocurrencies as of the 5th of July. As a result, crypto exchanges will not be able to let traders liquidate crypto assets.
Technical outlook: we have seen the price action move lower within a descending channel over the last couple of months. There needs to be a clear break and close outside the channel to negate the downward price movement. The price is also trading below the 50 day-simple moving average (SMA) which still supports the lower price movement and might act as resistance if the price moves higher.
Here are the trade technical notes for both bulls and bears on Bitcoin and Ethereum.
We have seen a positive start to the month of July as Bitcoin (BTC) climbed more than 12 percent from the recent lows we saw in June. We might see more upward momentum come through as traders and investors get more confident the price might continue to its former glory. I have looked at two possible trading opportunities for the BTC Bulls and the BTC Bears.
Source: Bloomberg
Source: Bloomberg
With the jolt we saw in Bitcoin (BTC) over the weekend, the peers have also seen gains of between 10 percent and 15 percent.
Outlook: Cryptocurrencies are heavily influenced by news events and if we see any volatility return to Bitcoin we might see Ethereum (ETH) follow suite.
Technical outlook: we have seen the price action move lower within a descending channel over the last couple of months. There needs to be a clear break and close outside the channel to negate the downward price movement. The price is also trading below the 50 day-simple moving average (SMA) which still supports the lower price movement and might act as resistance if the price moves higher.
Source: Bloomberg
Source – Bloomberg
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