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Crypto price analysis 7/16: Bitcoin targets a retest $10,000 in the coming days plus ETH, XRP, XTZ

The People’s Bank of China (PBoC) is expected to partner with food delivery giant Meituan Dianping to test the digital yuan. Currently, Meituan Dianping estimates there are more than 435 million users. The video streaming platform, Bilibili, could also be next in the project. Although the PBoC has not yet committed to a specific launch date, the coronavirus pandemic seems to have accelerated the project.

Bitcoin has seen volatility drop to its lowest level in three years, so in the short term, both the US and gold stock markets can outperform King Coin. However, every period of low volatility is often followed by volatility expansion. This means that when the next trend period begins, its power is likely to surprise traders.

Bitcoin

For the past few days, the Bitcoin price has mostly been trading with a drop below the resistance of $ 9,500. BTC even slipped below $ 9,300, but it was still higher than the 100-day SMA.

The last low formed near $ 8,809 before the price began to correct the short-term rally.
It broke above $ 9,000 and $ 9,200. The price even broke the Fib 50% retracement of the decline from the $9,768 high to $8,809 low.

However, the up move has been limited by the resistance of $ 9,400. The bulls also struggled to clear the 61.8% Fib retracement level of the decline from the $9,768 high to $8,809 low.

Crypto price analysis 7.16 btc

Source: TradingView

There seems to be an important contract triangle forming with resistance near $ 9,250 on the daily chart of the BTC / USD pair. If there is a clear break above the triangle resistance and $ 9,300, the price could start a strong upside move.

The next hurdles are $ 9,400 and $ 9,500, above these levels, the bulls are likely to target a retest of the major $ 10,000 in the coming days.

ETH

ETH has witnessed extremely strong performance since the low investment seen in March, far exceeding the majority of leading cryptocurrencies. It has increased by about 180% since mid-March. During the same period, Bitcoin surged by a relative 145%.

The recent ETH failure to pass $ 250 has made some expected downside. That level has been an important level for bulls and bears on several occasions over the past few years.

Following the lead of the rest of the cryptocurrency market, Ethereum’s rally has been halted for the past few weeks. According to analyst “CL,” there are many reasons to think that ETH will soon rise higher, including:

  • The market cap of ERC-20 tokens (the leading token standard of the Ethereum network) has, for the first time, surpassed the ETH market cap. This shows the increasing adoption and use of blockchain as a network to issue tokens and smart contracts.
  • The number of ETH locked in decentralized financial contracts is at an all-time high of 3.4 million. This means that about 2.5% of all cryptocurrencies in circulation are locked in DeFi.
  • Ethereum is currently at the lowest of the price-to-usage ratio.
  • ETH futures do not trade at the exuberant level, trading just a few percentage points above the spot price.

XRP

After surging above $ 0.2, XRP failed to erase the $ 0.212 resistance level. It topped near the $ 0.2118 level and started to correct the downside.

There was a break below the support of $ 0.205, but the price was still higher than 100 SMA (4 hours). It even trades below the Fib 23.6% retracement level of the increase from the $0.174 low to $0.2118 high.

However, the price is holding the primary uptrend support at $ 0.192. The Fib 50% retracement of the increase from the $0.174 low to $0.2118 high also acts as strong support.

Crypto price analysis 7.16 xrp

Source: TradingView

It looks like a critical bullish flag formed with resistance near $ 0.2025 on the 4-hour chart of the XRP / USD pair. On the other hand, the price is facing barriers near $ 0.2, $ 0.202, and $ 0.2025.

A close above the channel resistance is necessary to raise the new level to $ 0.21. If the bulls succeed, it could even push Bitcoin and ETH higher in the coming sessions.

XTZ

XTZ has seen a sharp increase above the $ 2.5 and $ 2.7 resistance levels. After that, there was a short-term downside correction, but the bulls protected losses below $ 2.7 and 100 SMA (4 hours).

A low formed near $ 2,654, and the price started a new rally. There was a clear break above the $ 3 resistance level, and the price even broke the latest high swing level.

XTZ price is trading to new monthly highs at $ 3.38 and is currently consolidating gains. The initial support is near $ 3.15. It is close to the Fib 23.6% retracement of the recent rally from the $2.654 low to $3.308 high.

Crypto price analysis 7.16 xtz

Source: TradingView

There is also a major uptrend line forming with support at $ 3.1 on the 4-hour chart of the XTZ / USD pair. Significant support is near the $ 3 level and the Fib 50% retracement of the recent rally from the $2.654 low to $3.308 high.

On the other hand, the $ 3.3 level is an immediate resistance level. A successful breakout above the recent high could open opportunities towards $ 3.5 and $ 3.6 in the coming days.

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