By Deepta Bolaky
2018 has sent cryptocurrencies into a bear market as bans, hacks, regulatory crackdowns and regulations overshadowed the crypto-land.
It is difficult to conclude whether cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, Litecoin and Ripple have already bottomed down or have room to fall further to the downside. Last week, major cryptocurrencies had found buyers and given the rollercoaster nature of the cryptocurrencies, it is hard to predict such markets. However, the crypto-market is now more contained with regulatory clarity and traders are not trading in the emotional market they were last year.
Crypto- exchange Gemini has obtained insurance coverage for its digital assets which were translated as good news for cryptocurrencies. Bitcoin rose above $6,500 mark on the news.
On the technical side, BTCUSD has formed a symmetrical triangle on the one-hour chart representing indecision from sellers and buyers. On the daily chart, there is a string of lower highs which have formed the upper line while the support line lies just below the $6,000.
If Bitcoin did manage to break out at the apex of the triangle, traders should monitor certain critical levels. On the upside, if bulls drive prices above the $6,500 and September 4, intraday high of $7,400, the pair has potential to rally above $8,000 mark. On the downside, a break below the strong support level of $6,000 could see bears entering with force.
The announcement of the beta version of Ethereum 2.0 Shasper helped Ethereum to maintain its support at the $220 level.
ETHUSD has formed an ascending triangle on the hourly chart. Bulls are finding resistance around the $225 level where they are gradually trying to push the price up as evident by the higher lows. If the price breaks out past the resistance level, more buyers will likely come-in. On the downside, if the pair dropped below the support upward trend line, the price could drop to almost the same height of the triangle.
This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk.