Bitcoin: recovery of the bullish channel is unlikely
Bitcoin: recovery of the bullish channel is unlikely

Bitcoin: recovery of the bullish channel is unlikely

By Federico Izzi - 17 Jun 2020

Chevron down

Bitcoin, after recovering the $9,500 yesterday, today tries to confirm itself above this level, although it would seem that as time goes by the recovery of the bullish channel seems less likely. A recovery which from the lows of March and until Friday characterized the entire movement until the break-down of the lower channel, where prices continue to fluctuate even now, in the $9,600 area.

coin360 20200617

Among the big ones, there are no particular upward movements, to the point that among the top 15 performances of today there are no coins exceeding 2%. These rises give positive signals that if confirmed in the next few hours would give a signal of reaction after the declines that occurred between Sunday and Monday.

Volumes see a sharp contraction with just over $50 billion, about 40% less than yesterday’s levels. Bitcoin trading volumes are holding up well, although lower than yesterday’s, remaining just under 2 billion dollars, a decrease from Monday’s levels, but still tonic levels.

The market cap is trying to recover the $270 billion after Monday morning’s slide, when for the first time since the end of May total capitalization fell below $250 billion. 

Bitcoin stays above 65%. Ethereum’s market share continues to decline after it failed to recover 10% last week. During these hours ETH remains below 9.6%. Ripple is continuing to fluctuate at the lowest levels since December 2017 at 3.15%.

Among the rises to be highlighted, Verge (XVG) continues to make a double-digit jump of 13%. The best is Flexacoin (FXC) which climbs 27% to 63rd position with just under $120 million.

On the other side, the DeFi universe is experiencing declines. The deepest drops are those of Zilliqa (ZIL), -4.5%, Maker (MKR), -2.5%, Ren (REN) -2.20%, 0x (0X) -1.45%. 

EDO 20200617

Eidoo (EDO) goes against the trend in the DeFi universe, recovering yesterday’s 62 cents, the highest level since July 2019. Eidoo today consolidates the rise of recent days with a +2%, a performance that sees it more than double the token prices since the end of May when the token recorded a $0.30 while in these hours is close to 0.60. 

Yesterday Eidoo touched 62 cents, but then profit-taking prevailed.

BTC 20200617
Bitcoin chart by Tradingview

Bitcoin (BTC)

Bitcoin keeps above $9,500 even today. The attempt to get back into the bullish channel that accompanied the price movements of the last quarter has been abandoned. 

The bullish movement would be confirmed if in the next few hours prices were to trigger a tonic rise above $9,900. This is the level to consider to attract new purchases. 

This area also coincides with the static resistance that since the beginning of May several times has seen the defensive reaction of the Bears that have always prevailed by rejecting the price below this level. For Bitcoin, the situation would weaken again with prices under $8,900-9,000.

ETH 20200617
Ethereum chart by Tradingview

Ethereum (ETH)

Although with fatigue and the risk of a possible break-down, prices remain above the lower neckline of the bullish channel, which remains a valid level in the medium to long term. 

This dynamic support is now just under $230. Ethereum fluctuates just above this level. 

It is necessary for ETH to consolidate these levels to give a bullish impulse over $240. A break of $230 would not negatively affect the trend in the last quarter, but it could open up the possibility of an extension beyond $215, which corresponds to the former resistance area that has now become support in the medium-long term. 

A break of $215 would start to worry Ethereum enthusiasts and traders about the medium to long term performance. Whereas if ETH goes back above $250, a new bullish phase could begin.


Federico Izzi

Financial analyst and independent #trader – S.I.A.T. & partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".

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