Crypto price analysis 7/8: Bitcoin aims $ 9,500 in the short-term and $50k in the long-term plus ETH, XRP, ADA, LINK, DOGE
Leading Bitcoin higher, the global stock market saw an extremely strong performance on Monday.
The Shanghai Composite index and the FTSE China A50 index both set new all-time highs with a 6% increase. The S&P 500 followed with its own interest, up 1.5% from the previous week’s close.
Bitcoin and the rest of the cryptocurrency market have benefited from this stock market power.
However, bears have once again denied the stock market, at least in the US. If the correlation between the S&P 500 and Bitcoin holds, this incident will negatively affect BTC going forward.
Yesterday, there was a pretty bullish move for Bitcoin above the $ 9,200 resistance level. BTC even rose above $ 9,300 and 100-hour SMA.
A high was formed near $ 9,377 before the price began to decline. The price fell below the $ 9,320 and $ 9,300 support level. However, it is still trading above $ 9,200 and the 100-hour SMA.
A low formed near $ 9,205 and the price is currently rising. It broke the Fib 23.6% retracement of the recent downside correction from the $9,377 high to $9,205 low. On the upside, the $ 9,300 level once again acts as a resistance for the bulls.
The Fib 50% retracement of the recent downside correction from the $9,377 high to $9,205 low is also preventing more gains. There seems to be a major uptrend line forming with support near $ 9,250 on the hourly chart of the BTC / USD pair.
If the pair continues above the $ 9,300 and $ 9,320 levels, it is likely to break the $ 9,377 high and target new highs. The immediate resistance is near $ 9,400, on which the bulls are likely aiming for a test of $ 9,500 in the short-term.
In the long-term, traders are betting big on the $ 50,000 Bitcoin options for June and December 2021.
Over the past three weeks, $ 150,000 worth of Bitcoin $50k call options for strikes in June and December 2021 have been traded.
There are some good reasons to buy options with such small odds, but paying $ 1,000 for the privilege of buying Bitcoin 440% over the current price for 18 months seems unreasonable.
Even considering the 100% annual volatility, which is quite high even for Bitcoin standards, the probability of a price reaching $ 50,000 is less than 8%.
ETH is still trading in the ₿0.0259 resistance zone. Until it goes above it and confirms it is the support, price volatility can be considered bullish. If successful, the price can move to the next resistance area at ₿0,0305.
The weekly RSI is following an ascending support line, which could be a good measure of Ethereum’s trend. As long as the support line is not broken, the long-term trend for ETH may still rise.
In the daily chart, we can see resistance and support levels at 0.0259 and 0.0242, respectively.
The price initially respects the resistance area by creating some long upper-wicks, culminating in a shooting star on June 25. It created a bullish candle that engulfed yesterday, breaking out of this resistance.
However, there is a growing bearish divergence in the RSI indicator, which shows that the price may not succeed when breaking out of this resistance area.
Hourly charts provide a bullish picture. Ethereum broke out of an ascending channel and then regained its previous resistance at 0.0255 as support. ETH has also confirmed the resistance line of the channel is support.
If Ethereum manages to stay above the zone of 0.0255, it will be expected to continue moving upwards towards 0.0305.
On the other hand, a fall below this level will indicate that the previous breakout is not legal and is likely to fall to the support level of 0.0242.
Over the past week, XRP has formed strong support above $ 0.172. It has started a solid move from a low of $ 0.1687 and broke many hurdles near $ 0.182.
There is a break above the $ 0.19 resistance level, opening the doors for more growth. The pair soared above $ 0.1950 and the 100-day SMA. Moreover, it broke out of the 50% Fib retracement level of the decline from the $0.2151 high to $0.1687 low.
The price has run into a major resistance zone at $ 0.2. There is also an important bearish channel forming with resistance near $ 0.2 on the daily chart of the XRP / USD pair.
The channel resistance is close to the 61.8% Fib retracement level of the decline from the $0.2151 high to $0.1687 low. Therefore, a break above $ 0.2 is necessary to increase further in the coming days.
If the daily close is above $ 0.2, the price may start another rally. The next resistance level is near the $ 0.215 level, above which it may revisit $ 0.22.
ADA is currently the sixth-largest cryptocurrency with a market capitalization of $3.45 billion, surpassing BSV.
Considering that ADA is the only cryptocurrency in the top 10 that is being pumped with two percent digits (+26.4%), it’s no surprise that it surpasses competitors.
According to analyst Luke Martin, behind the strong performance of ADA in the past 24 hours and in the past few weeks is:
“ADA & XTZ have been two of the most memorable large-cap pumps in the last year. Both come down to one thing: staking/baking. What large-cap alt will be the next to launch their staking?”
Both come down to one thing: staking/baking.
What large cap alt will be the next to launch their staking? pic.twitter.com/8AyX17OxpS
— Luke Martin (@VentureCoinist) July 7, 2020
Martin is referencing Cardano’s Shelley upgrade, which is like the Ethereum 2.0 upgrade.
Shelley promotes the decentralization of the Cardano network through staking ADA. Staking is when users allocate their cryptocurrency to a node and earn rewards for processing blocks. Staking has not yet appeared on Cardano, although it is expected to be released later this month.
Investors who are buying into ADA seem to be involved in staking, generating passive income for the participants.
Chainlink (LINK) has reached a record high, far beyond Bitcoin’s profit since the beginning of 2020. The increasing use of Chainlink’s oracles in increasing decentralized finance (DeFi) is driving cryptocurrencies to rise even higher.
The 12th largest digital currency by market capitalization is trading at the new ATH of $ 5.89, which corresponds to an increase of more than 200% on a YTD basis.
Bitcoin, meanwhile, is down more than 50% from the ATH level of $ 20,000 achieved in December 2017 and up only 29% this year.
LINK has separated from Bitcoin. Observers are linking LINK’s headline protest with the growing use of Chainlink in the Defi space.
Over the past few days, Dogecoin has formed a strong support base above $ 0.002. DOGE broke a few key hurdles near the $ 0.0025 level to start a strong rally.
There is a break above the bearish trend line connected to the resistance near $ 0.0025 on the weekly chart of the DOGE / USDT pair. It opened the door for a strong rally and the pair rose more than 100%.
It broke the $ 0.004 resistance level and stabilized above the 100-week SMA. It even soared above the $ 0.0045 and $ 0.005 resistance levels (outperforming other major cryptocurrencies, including Bitcoin and Ethereum).
A new monthly high is formed near $ 0.0055 and the price is currently cutting profits. It seems the bulls are facing a strong resistance near the weekly barrier of $ 0.005. It corrected below the Fib 23.6% retracement of the recent rally from the $0.0011 low to $0.0055 high.
If the weekly close above the resistance level of $ 0.005, it is likely that there will be an extended bullish move. The next major resistance levels are seen near $ 0.0055 and $ 0.0058, followed by $ 0.0062.
- DOGE volumes skyrocket nearly 2000% and price jumps 35% in just 2 days viral TikTok videos
- Cardano price is flashing some signs of forming a macro top formation, could spark a selloff