Signs of confidence return to crypto-markets

Major cryptocurrencies trade in a quiet fashion.

BTC/USDT trades sideways with limited momentum on both directions. Trend and momentum indicators (MACD) turned marginally positive, yet buyers remain on hold at the current levels. There is a solid resistance at 7800/8000 zone. Clearing the short-term resistance zone could pave the way for a further recovery toward 8500 level. Buyers are touted near the weekly pivot, 6500, and above. A break below this level could trigger a deeper sell-off and bring the 5500/5000 zone back in radar.   

Litecoin on the other hand remains timid as usual. LTC/USDT has successfully consolidated above the 100-level, keeping the market within the 100/125 level. The weekly pivot stands at 113, little changed from last week’s 115. Relatively low volatility hints at a slow recovery. Clearing the 120/125 offers should pave the way for a further rise to 135 (50-day moving average) in the short-term, then to 169 (200-day moving average) in the mid-term. 

On the downside, the 100-level is key to watch. Stops below this level could compromise the actual recovery.

Others however seem to be attracting investors' attention gradually. According to latest Google advert rules, interest in Ethereum news has climbed by 175% compared to a year ago. As a comparison, Bitcoin news volume is about 75% of last year's figures.

Hence, Ethereum intrigues an increasing number of traders. Why so? Because it has viable business projects, such as its first steps in massive multi-player online game (MMORPG) industry. From a technical standpoint, ETH/USDT should encourage dip-buyers to take advantage of low price/reduced volatility after regaining the 600 level. The first target is set to 700 level. On the downside, short-term support is seen at 540/500 (area including the 200-hour moving average and a solid psychological support). If however an unexpected downside move gains momentum, the sell-off could extend toward 350 level (March support).

Another promising cryptocurrency is Bitcoin Cash, which proposes solutions for speed and scalability that Bitcoin could not offer. BCH/USDT is holding ground above the 1000, psychological level. Improved market sentiment and a global recovery in cryptocurrencies could encourage traders to invest increasingly in Bitcoin Cash due to its more attractive characteristics compared to Bitcoin. As a result, Bitcoin Cash continues pushing higher against Bitcoin as well.

The key resistance versus USDT is eyed at 1190/1200 (major 38.2% retracement on May – June debasement), if cleared should pave the way for a further recovery toward the 1400/1500 area, including the 200-day moving average. 

Solid support could be found at 1000, before 900/850.