Improved appetite in cryptocurrencies despite Bancor attack
|The sentiment in cryptocurrencies is improving as speculations that the market is preparing for another bull run attract buyers, although the Bancor attack could compromise the recovery in short-term due to increased worries on safety.
Bitcoin extended gains past the 50-dma (6715) versus the US dollar. Trend and momentum indicators turned positive hinting at a further recovery in the short-run. The key resistance is seen at 7004 (major 38.2% retracement on May – June debasement). Clearing this resistance should signal a short-term bullish trend reversal and encourage a further rise toward 7500 and 7995 (major 50% and 61.8% retracement). On the downside, dip-buyers are touted near the 6000-level.
Ether remains momentarily cautious after a cyber-attack hit Bancor, a decentralized crypto-exchange, and placed $12 million worth Ether in danger, as well as $1 million worth NPXS and $10 million worth BNT, which are ERC-20 tokens. ETH/USDT is testing the 500-offers. The improved sentiment across the sector should give a further support for a rise above this psychological level. Clearing the 500-resistance should pave the way toward 556, the critical 38.2% retracement on May – June decline, which should distinguish between a consolidation near 500 and a further recovery toward 605 and 653 (major 50% and 61.8% retracement).
BCH/USDT trades in a tight range around 730, the weekly pivot level. A further recovery is certainly around the corner, with bulls targeting 800 and 830 (weekly resistance) levels in the continuation of an improved sector-wide sentiment.
To our surprise, Bitcoin Cash has performed poorly compared to Bitcoin; BCH/BTC remains comfortably below the 200-dma, which could be seen as a window of opportunity for a further recovery, given that from a fundamental perspective, Bitcoin Cash offers scaling and security measures that other platforms don’t.
Meanwhile, little has changed in Litecoin sentiment since last week. LTC/USDT remains rangebound between 75/90 area. The key resistance is eyed pre-100. Intermediary resistances are presumed at 91 and 95, weekly resistance levels. Litecoin should successfully fight back the 110-offers (major 38.2% retracement on May – June decline) to step into the short-term bullish consolidation zone.
Despite offering a better alternative than Bitcoin for digital transactions, Litecoin often suffers from a lack of solid believers. From a value perspective, Litecoin continues losing field against Bitcoin. We maintain our cautious view
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