In the weekly charts, bitcoin (BTC) has dropped from $6700 to $6000, effectively invalidating the gains it had made in the last 2 weeks. This is a bearish signal, one that could mean that the recent surge from $5700 to $6700 was a fake breakout.
If bitcoin continues in this trajectory going into the weekend, it could be a signal that bears are regaining control of the market. In such a scenario, bitcoin could drop even further and test $4800, at the 55-day moving average.
However, this is long-term and will be subject to a number of factors including an entry of institutional money into bitcoin.
On the more short-term level (the weekend), bitcoin is likely to range, or drop to $6000 – $5900. That’s because it is trading in a range at the lower side of the long bearish candle of the 10th of July. This range also happens to be below the 21-day moving average, indicating that bearish sentiment is strong in the market.
A break to the downside could see bitcoin (BTC) test $5800, which is the previous support level in the last drop. Therefore, this weekend will most likely be more favorable to those shorting bitcoin, unless positive news comes up over the weekend and change the sentiment.
Like Bitcoin (BTC), Ethereum (ETH) has shown a clear bearish signal after breaking below last week’s low of $443 to trade at $438.
Going by its current trajectory, Ethereum (ETH) is likely to hit $312 in the coming week. This is the key support level on Ethereum’s long-term charts, as it sits on a major support level (the 100-day MA).
In the short-term, Ethereum (ETH) is consolidating below the 21-day moving average. This indicates that there is very little buying momentum in the market at this point. Therefore, Ethereum (ETH) is more likely to breakout downwards with a possible target of $400.
However, this is not cast in stone. If some positive news comes up over the weekend, Ethereum (ETH) could reverse and test its near-term high of $485. But without any news, Ethereum (ETH) currently favours those looking to short it, with the expectation that it will drop, not just over the weekend, but all through next week as well.
Ethereum Classic (ETC)
From the weekly charts, Ethereum Classic (ETC) has cancelled out last week’s gains and is trading along last week’s lows of $16.20.
However, unlike the rest of the market, this drop is yet to erase the positive momentum that ETC had gained in the last 4 weeks. As such, this drop is most likely a dip that will be followed by a bullish continuation. Buying volumes are very high in Ethereum Classic too, an indicator that the overall sentiment is bullish.
In the day, it is trading in a tight range between the 55 and the 100-day moving averages. This indicates that ETC is about to break out. Given that this range is on the lower side of a bearish candle, ETC will most likely be bearish in the short term with a target of $14.47 in weekend trading.