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