Two of the biggest-by-market cap cryptocurrencies, Bitcoin and Ethereum, have perked up near the lows. Both have been trending down for the past month and looked as if they would test their recent lows created on 6/22: $28.8k for Bitcoin and $1700 for Ethereum.
However, while Wednesday's price action has stopped the bleed, will altcoins jump on the potential rally?
When it comes to resistance levels, the first hurdle for Bitcoin to clear and hold would be the 36k area. If it does, by then it will have also cleared its 50-day moving average at 34.5k and will show a breakout from the downward trend.
On the other hand, Ethereum has support at the $1700 level, with resistance forming at $2270 to $2400. Like Bitcoin, by the time Ethereum reaches $2400 resistance, it will also have cleared its 50-DMA at $2213.
When it comes to altcoins (any currency that is not Bitcoin), Chainlink (LINK) and Cardano (ADA) have interesting technical chart setups. LINK will need to stay over $15 proving it can hold over its low created on 6/22. Although it is in a bearish phase, consolidation over this price area could entice more buyers near this support level.
However, when it comes to consolidation, Cardano (ADA) has spent most of the year within the $1-1.45 range. Currently, Wednesday's price action has it sitting right over the 200-DMA at $1.15.This is a key pivotal area for it to stay over, as the next psychological level for it to break lower to is $1.00.
When it comes to trading altcoins, one should try to time their entries with the large-cap coins, like Bitcoin or Ethereum, as their recent lows will need to hold and have a lot of impact on the rest of the crypto space.
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- S&P 500 (SPY): New support 426.71.
- Russell 2000 (IWM): 209.05 support. 224.70 choppy area.
- Dow (DIA): 337.38 new support. 350 resistance.
- Nasdaq (QQQ): 352.04 support. 365.49 resistance.
- KRE (Regional Banks): Support 59.14. Watching for this to clear and hold over the 10-DMA at 62.86.
- SMH (Semiconductors): 259 resistance area.
- IYT (Transportation): Like to see this hold the 10-DMA at 255.22.
- IBB (Biotechnology): 165.80 resistance.
- XRT (Retail): Needs to stay over 94.40 the 50-DMA.
Assistant Director of Trading Research and Education