Crypto Price Analysis 6/16: Bitcoin is heading for a rally to $15k in August plus ETH, XRP, ADA
The first day of the new weekend in green. The Dow Jones industrial average (DJIA) increased by 157.62 points (+ 0.62%), closing at 25,763.16. The NASDAQ Composite increased by 137.21 points (+ 1.43%), closing at 9,726.02 and the S&P 500 increased by 25.58 points (+ 0.83%), closing at 3,066.59.
Action on the stock market continues to shape Bitcoin price performance. A habit before trading on Monday caused a short ride under $ 9,000, while BTC’s rally was accompanied by a higher rise among stocks.
The impetus for immersion and recovery later came as a concern about coronavirus followed by a stimulus notice from the US Federal Reserve.
The US Fed said it would buy individual corporate bonds, taking a broader approach to buying corporate bonds. Although the Fed previously indicated that it would eventually buy bonds in the primary market, today’s announcement marks an expansion into the secondary market.
The result of Monday’s action appears to be that Bitcoin remains exposed to macro forces, despite the broad “decoupling” phenomenon that the largest cryptocurrency has undergone since the major coronavirus crash in March. Despite this, analysts remain optimistic about King Coin’s price prospects.
A strangely similar fractal that mimicked Bitcoin price action last year before proceeding with parabola has begun to form after the latest price drop below $ 9,000.
If King Coin continues to follow a similar pattern, the target price could be as high as $ 15K before August 2020 ends.
Financial markets are cyclical, and history is often repeated. When repeating price patterns appear on charts of different financial assets, they are called fractal.
These fractals appear and repeat because they represent the different types of human behavior and emotions that also recur frequently. It is this behavior and emotion that drives the balance of buying and selling creating price action.
Because these models may have similar fundamental effects, crypto analysts often compare fractals on the same asset or even compare them between one asset and another.
Cryptocurrency analysts claim the altcoin market is following the Bitcoin cycle soon. Others think Bitcoin is following gold, Amazon stock or even the S&P 500.
Some of these fractals are persuasive, while others only assess the cloud and adding a predetermined deviation layer can lead to overly strong beliefs and even losses.
A fractal might be going very well in line with the price action from the Bitcoin rally just a year ago and has a short-term price target of $ 15K.
After Bitcoin, most recently dropping below $ 9,000, the asset completed a move that made price action look extremely similar to the exact same price action from a year ago.
A pump in early May above resistance level had consolidated assets for nearly a month. During that time, many attempts to overcome the next horizontal resistance failed, but all held support.
After a sharp pump in the middle of the model, the Bitcoin price dropped one last time to support – in line with today’s move.
Since the merger has expanded greatly, and another strong uptrend and rally began. Bitcoin reached a high of $ 14,000 before it was rejected and another downtrend formed.
Putting the previous price action into the current price action creates shocking similarities, but the pattern is not perfect.
However, if it goes in the right direction, it will lead to a breakout before the US National Day holiday on July 4, giving the bulls a reason to celebrate with fireworks for the next goal will be $ 15K.
ETH’s decline yesterday marked the end of the multi-week consolidation phase that it was caught in the range of $ 230 to $ 250. The longer it remains below the lower boundary of this previous range, the weaker it will likely become.
In the short term, Bitcoin trends will probably play a huge role in determining where the entire altcoin market is next.
An analyst recently explained that he still expects Ethereum to drop to $ 200 in the near future. However, this level must be strictly protected by the buyer, otherwise it may risk a significantly greater loss.
“A lot more sideways PA than expected, I am short again looking for another touch of this ascending channel.”
Source: Escobar/ Twitter
Another respectable trader recently highlighted the importance of the $ 200 area, explained that he believes this is the level that the cryptocurrency will access before launching its next strong uptrend.
He noted that this could trigger a rally that led Ethereum up to $ 300.
“Buying the dip has been the way to go for the past 3 months. Nothing has changed so far. Getting ETH low $200s and aiming for $300.”
Source: Galaxy/ Twitter
Last Sunday, XRP’s $0.190 price level hardly wavered as sellers tried to push it out of the sideways trend. Last night, the previous support level could not withstand another attack, forcing the price to set a new local level of $ 0.185.
This morning, the decline has stopped and buyers are trying to keep the price of the XRP trend sideways. If XRP fails to break the $ 0.19 line, the decline will continue towards the upper border of the purple channel.
Looking at the 4H chart, XRP has slipped below $ 0.187, confirming the beginning of a long-term downtrend. However, a bullish divergence has formed on the RSI, indicating a possible correction. In this particular case, traders can expect a retest of $ 0.187 before initiating another round of discounts.
Looking at the daily chart, the MACD is declining. This means the bulls are unlikely to return to the critical $ 0.2 level. With the volume of transactions falling, XRP will continue to trade within the descending channel and the nearest support level is the bottom of the channel at $ 0.17.
Surprisingly, ADA was able to recover to the top 10 after surpassing CRO. Now ADA is expanding by nearly 10% and trading at $ 0.0786. Over the past 24 hours, Cardano has registered a transaction volume of $ 313 million.
Cardano and the team behind it are working to provide users with the ability to have a functional network with innovative solutions and services. Currently, there are more than 200 staking pools on the Shelley testnet. The network is currently being tested and made all the necessary improvements before they release the official version to the market.
Charles Hoskinson, Cardano’s founder, is very optimistic about the future of cryptocurrencies and the network. He stated that in August, hundreds of operators will be running Cardano and in a few years, thousands of operators would be working with it and even with Hydra channels, Oracles and many other decentralized solutions and services.
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