Crypto price analysis 7/6: Stochastic RSI indicates Bitcoin will spike 150% soon plus ETH, TRX, LINK
Bloomberg senior commodities strategist Mike McGlone recently launched a cryptocurrency outlook, which states that Bitcoin’s volatility will continue to decline as the asset operates like gold. The report also stated that the main demand and applied indicators are still positive. The report concludes that Bitcoin is set for a breakout with a target at the $ 13,000 resistance level.
The US dollar is likely to lose its appeal as the world’s reserve currency. It will take some time before the current economic system collapses due to central bank measures. Until most people do not realize that printing money cannot be the solution to all problems, institutional investment is only able to slowly flow into the cryptocurrency space.
Investments are likely to spike when they realize that the US dollar and other currencies are wrong. That will boost the cryptocurrency prices and lead to a large bull market.
The past few weeks have been pretty boring for the Bitcoin market. After hitting the $ 10,500 mark in early June, the cryptocurrency has entered a short-term downtrend.
While some say that this price action is the precursor to a steep correction, a key trend indicator is about to print a bullish sign. This is important because the index has been fairly accurate in predicting rallies and corrections in recent months.
As pointed out by trader “Fractalwatch”, a key indicator on the three-day chart of Bitcoin is about to print a bullish cross.
This indicator is Stochastic RSI, sometimes called Stochastic. Investopedia describes it as a common technical indicator to generate oversold and oversold signals.
According to Stochastic, Bitcoin has recently reached a level of oversold but is starting to reverse higher. The last time this trend was seen was in March, just a few days after BTC reached $ 3,700, then began a 150% rally that peaked at $ 10,500.
Source: Fractalwatch / Twitter
The Stochastic index on the monthly time frame is also bullish, according to trader Eric Thies.
He shared the chart below that shows how the indicator looked like before BTC rose from hundreds to $ 20,000 from 2015-2017.
Source: Eric Thies / Twitter
Referring to the chart above, Thies wrote that the time for you to buy Bitcoin under $ 10,000 is limited.
Over the past few days, the price of Ethereum has formed a strong support base above $ 224. The price of ETH started rising new and broke through a few important hurdles at $ 228 and $ 230.
The bulls have strengthened, resulting in a steady rise above the $ 230 resistance. More importantly, there was a break above a major downtrend line with resistance near $ 230 on the hourly ETH / USD chart.
The pair even climbed above the $ 232 resistance and tested the $ 235 area. It is currently correcting lower and trading near the Fib 23.6% retracement of the recent rally from the $223 low to $235 high.
On the other hand, the first major support is near the $ 230 (recent breakout zone) and trend line. It is close to the 50% Fib retracement level of the recent rally from the $223 low to $235 high.
When the current corrective wave is completed, it is likely to gain further above the resistance zone of $ 235. In the case mentioned, the ETH price may continue to rise to resistances of $ 245 and $ 250 in the coming sessions.
After testing the support of $ 0.0150, the TRON price begins to rise new. TRX has broken the critical hurdle of nearly $ 0.016 to move into the positive territory.
In addition, there was a close above $ 0.0165 and 100 SMA (4 hours). It has recently increased by more than 5% and far surpassed other major cryptocurrencies, including Bitcoin and Ethereum.
During the rally, there was a break above the downtrend line connected to the resistance near $ 0.0168 on the 4-hour chart of the TRX / USD pair. The pair is trading to new weekly highs at $ 0.0177 and it is showing positive signs.
The initial support is near the $ 0.0173 level. It coincides with the Fib 23.6% retracement of the recent rally from the $0.0163 low to $0.0177 high. The first major support on the downside is near the $ 0.01705 and $ 0.017 levels.
The Fib 50% retracement of the recent rally from the $0.0163 low to $0.0177 high can also provide support at $ 0.017. On the upside, the first hurdles are near $ 0.0178 and $ 0.018.
A successful close above the $ 0.0180 resistance level could open the door for a larger rally to $ 0.0188 or even $ 0.02 in the coming sessions.
Analysis firm Glassnode has once again shared some interesting data with Crypto Twitter. This time, it relates to Chainlink, which has recently attracted the attention of many investors and traders.
Accordingly, a large amount of LINK (worth more than $ 16 million) was transferred to Binance in a day. Glassnode emphasized that it took nearly 5,000 transactions to provide such a large number of LINK for Binance.
The company also added that this is the largest daily net transaction they have ever seen on an exchange.
This resulted in a daily net transfer volume into the exchange of more than $16 million USD worth of $LINK – the largest we’ve seen so far.
— glassnode (@glassnode) July 5, 2020
- A maintained defense of $210 could be enough to allow ETH price to garner some significant upwards momentum
- There is a crucial indicator suggests that bearish undercurrent has formed as Bitcoin price has consolidated around $9,000