Bitcoin opened the week in negative territory, and looks set to sink lower. The No.1 cryptocurrency has broken below the 55-day moving average at $7600, a major long-term support level.
In the day, bitcoin (BTC) is showing a similar bearish signal after breaking below the 100-day moving average, a major indicator that bears are taking control. If selling volumes continue to rise, bitcoin could fall to the next support level at $6900.
From a fundamentals perspective, there is a strong possibility that bitcoin could drop further. The reason is that the recent rally was largely driven by the expectation that Gemini’s bitcoin ETF would be approved. SEC’s rejection now throws a cloud of uncertainty over the pending CBOE application and will only add to the bearish momentum that has hit bitcoin (BTC) at the moment.
For an investor looking to make an entry into Bitcoin (BTC) with a 24-hour target, it would make sense to short it, with a target of $7000 – $6900. In case there is a price reversal back to $7700 and above, bitcoin will most likely retest $8200 in the next 24-hours.
Ethereum (ETC)
For the last 3 weeks, Ethereum Classic (ETC) has been trading below the 55-day moving average, which indicates that it is in bearish territory. In the week, Ethereum Classic (ETC) has formed a bearish engulfing, which is usually a bearish signal.
In the day, Ethereum Classic (ETC) is showing a similar bearish signal having broken below the 55-day moving average at $16.12.
This could see Ethereum Classic test $14.43 in the day. However, Ethereum Classic could easily turn bullish at any time in the near future, due to the upcoming Coinbase listing.
Since the date of the listing is not in the public domain, short selling Ethereum Classic (ETC) would be a risky move as the coin will definitely turn bullish when the listing announced. However, from a pure technical perspective, Ethereum Classic (ETC) looks like a clear sell. The next support level to the downside is $14.85, a price level at which, it has lagged at in the past.
However, chances of dropping to that level are not that high, with the Coinbase listing hanging in the air.
NEO (NEO)
NEO (NEO) has had a bad run in the last 6 months, with the price dropping from $200 to under $30. In the last one week, NEO (NEO) has been trading below the $30 support level, which means that it could be headed lower.
The same is clear in the day charts, where NEO (NEO) has broken below the $33 – $30 price range and could drop further to $24 in the next few hours. As such, a short entry into NEO (NEO) within a 24 to 48 hour target would be most ideal.