Market Review End Of August 2018
Market Review For End Of August 2018
Recently, the Winklevoss twins founded a self-regulating organization called the Virtual Commodity Association. This association aims to advance transparency within the community. Right now, the organization has 4 members who will unite in September to set the rules and guidelines for the association.
Contrary to this positive news, the SEC denied nine different ETFs or exchange traded funds. Still 2 more ETF proposals will be considered later this week and some more in late September.
On August 21, the bears attempted to sink Bitcoin but the bulls bought the dip to $6,000, which is a positive sign. Today, the breakout of the overhead resistance of $6,617.5 resulted in a spike to $6,888.32, which triggered our buy proposed in the previous analysis at $6,750. However, the bulls could not hold on to the higher levels.
The bears have pushed prices back below the critical support at $6,617.5. This shows that the short sellers are pouncing on any short-term rise. The BTC/USD pair is likely to witness a few more days of range bound trading. The bears will make another attempt to break down of the critical support zone of $5,900-$6,000 within the next few days. If this support breaks, our assumption of a large range on the pair will be invalidated.
On the upside, $6,617.5 is the critical level to watch out for because the downtrend line of the descending triangle, the horizontal resistance and the 20-day EMA all converge at this point. If prices sustain above this level, the bulls are likely to make another attempt to break out of the 50-day SMA.
We suggest traders hold the long positions with the stop loss at $5,900. They can add the remaining 50 percent of the position after the cryptocurrency sustains above $7,000.
If the bears succeed in breaking below the support zone of $249.93-$269.78, the ETH/USD pair can slump to $200.
On the upside, a breakout of the 20-day EMA can result in a rally to $358, which will act as a stiff resistance. The pair has not broken out of the 50-day SMA since May 24 of this year, hence, a break out of the 50-day SMA will indicate a change in trend.
The traders should wait for a buy setup to form before initiating any long positions.
The pullback on Ripple is facing resistance at the 20-day EMA and the bulls are struggling to sustain above the moving average. If this level is crossed, the bulls will again face selling pressure at the downtrend line 2 and above that at the 50-day SMA.
Once the bulls scale above the 50-day SMA, the XRP/USD pair can move up to $0.5, where it will again face resistance from the downtrend line 1.
The bulls are defending the $0.31 level on the downside. If this level breaks, a fall to $0.27255 and thereafter a retest of the lows at $0.24508 is probable.
We shall wait for some buying to return before turning bullish.
Bitcoin Cash has been trading between $500 and the 20-day EMA since August 15. If the bears sink the prices below $500, a retest of the $473.9060 line is probable.
On the other hand, if the bulls break out of the 20-day EMA, a rally to the downtrend line is likely. We shall turn positive if the BCH/USD pair sustains above the downtrend line for a couple of days.
Until then, it is best to remain on the sidelines.