It’s quite surprising to be writing this, but the XRP rally lifted Bitcoin and Ethereum off yesterday’s lows. As I wrote yesterday in covering Bitcoin, my bullish enthusiasm was dampened by Bitcoin’s $300 drop. XRP rising has given renewed hopes that the lows for the year are in and higher prices are ahead.
The most frustrating part about the XRP rally was the news put out by our competitors. We read the XRP rally was due to xRapid launching soon and also that a major Saudi Arabian bank had joined the Ripple network for international payments. I’ve been trading cryptocurrencies long enough to know that no one knows the exact reason why something happens in the market. This is a major buy spike that came out of left field.
I am certainly feeling better about Bitcoin now than I was 24 hours ago. The lack of volume and the price action felt like the market was heading lower. Today, however, we are back around the 6350 levels.
The problem is that it still not enough to make me buy more Bitcoin. We are still in the middle of the range between 6100 and 6500. This neutral zone is not an area that I want to be putting on trades. Yesterday’s jump was indeed positive, but need proof that it was not a one-off event before heading lower. If we start breaking higher, the only trade I see is buying above 6600 and look for a move to 6900 to 7000. On the downside, I am watching the 6100 level. A break there and we will go on to test 5900 then the lows of the year at 5740.
On the fundamental side, there are a few developments worth noting. Number one, Fidelity is eyeing crypto products by the end of the year. While it’s unclear what the products will be, it is more evidence that traditional finance wants its piece of the crypto pie. Second, “Crypto Mom” Hester Peirce gave a speech outlining her support for cryptocurrencies. Here are my takeaways from her speech:
- If the general public wants to invest in crypto, the SEC should not be a hindrance.
- Risk is always involved when it comes to risk. Crypto is not necessarily riskier than other asset classes.
- The SEC should encourage innovation, not hinder it or seek to be the innovator. Let the free market innovate.
- She welcomes the “Crypto Mom” moniker.
Ethereum is back above the critical $200 mark. The case can be made for higher lows and that the Ethereum lows from last week will be the lows for the year. While I am more positive than yesterday, just like with Bitcoin, it’s not totally convincing. We need to see a break above 230 then 250 for confirmation that the low is in. For now, the support at 190 must hold or else we will test 170 again.
I am resuming my neutral bias and just waiting for the market to make its move. It’s important to not force a trade or over trade. Let the market decide what it wants to do, then act accordingly. I still have limit buys in case the market takes a dive. Orders are now at 5900, 5700, 5400, 5000, and 4800. For those that missed it, here I am on the Crypto Rich show on Monday.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. The author is long Bitcoin. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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