It's A Double Digit Loss For Bitcoin and Altcoins

A simple six percent drop in Bitcoin (BTC) prices and it’s a capitulation for altcoins thanks to their sometimes beneficial direct correlation. EOS, Stellar Lumens, Litecoin and Tron are not only trading below key support lines as mentioned in previous altcoins technical analysis, but have confirmed a bear break out pattern and the resurgence of the third phase—the trend resumption phase of that trade strategy. As such, we expect Litecoin (LTC) for example to hit $50 or lower, Tron (TRX) to test 2018 lows at 2 cents and EOS to trade below $4 in the coming weeks.

At a 10 percent week over week drop, it’s likely that last week’s Bitcoin bears will spill over and drive prices lower.

While there was initial excitement yesterday following that $300 gain propelling Bitcoin prices back to $7,100, the reversal has been swift and at this pace, we might see a break below $6,800, our lower limit of our buy zone.

It is solely because of this and the fact that the weekly chart is overly bearish reversing from key resistance trend line that I recommend selling Bitcoin (BTC) at current spot prices with stops at Aug 7 highs at $7,100 with first targets at $6,000—2018 lows.

On the reverse side, the only time we can think of buying is when there is conclusive reversal of these rampant sellers helping propel prices back above $7,300. Only then should we recommend buying on dips and syncing with mid-July bullish sentiment with first targets at $8,500.

For more than 40 days now, EOS has been trending and from previous EOS technical analysis, we had emphasized the importance of conclusive close below $7.

As we mentioned, any close below the main support line and the lower limit of our $2 trade range automatically confirms June 22 bears.

Well, that happened yesterday and as such, we now suggest selling EOS on every pull back retesting $7 with first bear targets at $4 now that the third phase—the bear trend resumption stage is on course. Safe stops should be at Aug 7 highs at $7.2.

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Bitcoin and Litecoin have this sometimes beneficial direct market correlation and with Bitcoin dropping, odds of Litecoin following suit—especially at a time when we didn’t expect market moving news—were high.

Yes, it did and on Aug 7, Litecoin slid five percent and with high market volumes, it’s likely that prices will close below the lower limit of our trade range at $70.

From previous Litecoin (LTC) technical analysis, such would entail selling on pull backs with first targets at $50 because of the confirmation of that bear break out pattern of June 10 and the resumption of bears as the trade strategy dictates.

As prices head to the dredges, TRX don’t want to be left behind. As a matter of fact, this kind of depreciation is normal after mainnet launches—we can see the consequent depreciation in EOS and many other coins.

Now, from the chart, TRX is down four percent and most importantly, our first targets are likely to be hit today. Since we are already short as per our Tron (TRX) trade plans, I recommend moving stops to break even and locking in some profits.

At the same time, moving targets to 2 cents would make sense.

With an 18 percent week over week drop, Stellar Lumens prices are capitulating. Now, after yesterday’s drop is a seven percent drop that has already driven XLM prices below 22 cents and in the process cancelling our previous Stellar Lumens (XLM) trade plan and bullish stand.

Because of this, we recommend pausing and waiting for proper close below June’s lows of 20 cents before we initiate shorts on pull backs with targets at 15 cents and later 8 cents in line with our past Stellar Lumens (XLM) technical analysis.

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.

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