Altcoin Sellers Wipes $42 billion in 10 Days
Straight from EOS, Bitcoin Cash, Monero and even Stellar Lumens—which was overwhelmingly bullish a couple of weeks ago, the erosion continues. As a matter of fact, some as Bitcoin Cash are now below key multi-month support lines and might experience accelerated losses this week.
Let’s have a look at these charts:
EOS Technical Analysis
Dan Larimer, the CTO and designer of the EOSIO network is proposing new ways of lowering what he calls the “capital cost of using the network and CPU resources”. As it stands, EOSIO is loading all the costs of launching and running a dApp on the owner and with a billing of a maximum CPU time of 400mS, it’s quite steep for those wishing to run on the network. However, Dan’s proposal of delegating or renting network bandwidth is even spelled out in the EOSIO white paper and so it isn’t something new. To complement this, the next stage will be to create an efficient rental market with deep liquidity and easy price matching.
— EOS Community Forum (@eosforumorg) August 5, 2018
Now, as far as EOS price action is concerned, odds are we might see a breach of our main support and sell trigger at $7 today.
The reason for this leaning is simple: week over week for example, EOS is down 17 percent. Additionally, when we take a top down approach, last week ended bearish meaning chances of confirmation of our previous EOS technical analysis bear break out trade assertion is likely.
Then again, notice the proximity between current spot prices in the last few days and the main support line at $7. If things remain as they are, then we might see a close below $7. Afterwards, we can begin shorting EOS with first targets at $4.
Ethereum (ETH) Technical Analysis
- BitHumb has resumed deposits and withdrawals of Ethereum (ETH) and eight other coins. This comes after hackers made away with more than $25 million of user funds on the third week of June.
[Re-Notice] The resuming of the deposit/withdrawal services for 9 types of crytocurrencies first
• List of cryptocurrencies (9 in total)
: BTC, ETH, ETC, XRP, LTC, BCH, ZEC, QTUM, MITH
•Open time : 4, Aug (Sat) 2018 19:00 PM
— Bithumb (@BithumbOfficial) August 4, 2018
- According to Vitalik Buterin, there is positive development moving Hybrid Casper into full Casper. Casper implementation will be part of the last Ethereum hard fork, Serenity, and once it has been fully implemented, PoS will be a mainstay consensus in the network. Then there will be two chains, the PoS main chain and the POW side chain for staking deposits linking to the main chain via a smart contract.
It’s pretty steep for Ethereum buyers right now. As we mentioned before, sellers did break below that mid-range wedge and with a retest of $400 and prices sinking 13 percent week over week, we might see execution of our official shorts this week.
Note that in the weekly chart, there is a clear bearish engulfing pattern breaking off the recent consolidation and confirming that bear break out of June 10.
Before we short, evidence should be there in the daily chart and the signal will be a high volume bear candlestick and a whole candle closing below $400. Afterwards, targets are constant as laid out in our past trade Ethereum (ETH) plans.
XRP Technical Analysis
- Ripple are partnering with Raising Malawi in a humanitarian campaign raising funds for unfortunate children. The Facebook campaign is in progress concluding end of this month.
- CoinBase is once again “exploring” and this time XRP is included and might be part of CoinBase Custodial Services. This service is specifically designed to meet financial institutions and hedge fund needs.
If anything, XRP is still trending inside a 10 cent trading range with clear support at 40 cents. Overly, we remain upbeat expecting XRP much needed gains, the five percent drain of last week might further fuel sell pressures pushing sellers to close below 40 cents for the first time in 2018.
According to our XRP trade plans, if we see that happening this week, we shall consider it a break below our sell trigger and confirmation of June 22 bear break out pattern retest phase.
It shall also signal the beginning of the bear trend resumption phase. So, as we reiterate, our first targets would be at 15 cents with safe stops anywhere between 50 cents and 55 cents.
Monero (XMR) Technical Analysis
- Hackers are now using a router, MicroTik to illegally mine Monero according to a report by Simon Kenin of Trust Wave. Trust Wave approximates that as many as 200,000 MicroTik users in Brazil might have been affected by the malware.
Monero mining malware has infected over 200,000 routers in Brazil. MikroTik network devices were infected and have been mining with Coinhive. https://t.co/RbILAlfcDY #Monero $XMR #Malware #cryptojacking #mining #Brazil #router
— Coin Bureau (@coinbureau) August 6, 2018
- BitHumb has put on hold the listing of XMR. Citing wide price gap-exceeding 10 percent-between BitHumb market and standard market prices would cause unnecessary volatility once normal service resumes.
At current prices, XMR is trading well below the 40 day support trend line and is $10 away from our main support line.
From prior Monero price preview, $100 doubles up as a minor support line and sell trigger. Even though at current prices I suggest taking shorts with stops at $130, executing sells at $100 would be safer as our the trend resumption phase would have been confirmed.
After all, the weekly chart is bearish as it gets and it won’t be trading against the trend when we aim for $70.
Bitcoin Cash (BCH) Technical Analysis
We are no longer bullish on #bitcoin $btc & dumped all @ 8300 USD. We’ve put our farm up for sale also. Why? We no longer want to participate in the worlds most manipulated commodity. Bitcoin is now just a shit show. Good luck! pic.twitter.com/habZvcdr1q
— ɃitPico (@bitPico) August 4, 2018
- Roger Ver continues with his evangelism claiming Bitcoin Cash is the real Bitcoin as envisioned by Satoshi. Points to Bitcoin’s white paper.
Like most coins under review, not only is Bitcoin Cash trending lower but is below the 30 day support trend line cancelling our previous Bitcoin Cash (BCH) trade plan.
If anything, we expect sellers to push lower now that not only are prices below the 30 day support trend line but are also trading below the 12 month support trend line in the weekly chart.
Because of this, I recommend selling BCH at current spot price with stops at Aug 4 highs at $750 with first bear targets at $600.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.