Summer Consolidation with Alts Bottoming – Funstrat Global Advisors
- Trading lows developing for select Alts as BTC consolidates above key support near $9K – Short-term oversold trading rebounds are underway for many cryptocurrencies within what we expect to be a broad summer consolidation. While BTC has rallied into its first short-term trading resistance at $10.2K, ETH and LTC are illustrative of trading lows developing for many coins.
- BTC – Establishing the low-end of a summer trading range ($9K) – Testing trading resistance at $10.2K.
BTC continues to show encouraging evidence establishing the low-end of a broad summer trading range retesting key support at $9K over the past few weeks in a pattern that looks similar to what developed in the summer of 2016. Weekly momentum continues to unwind from very overbought levels reached in June but likely needs more time to transition toward neutral (50) to support another upside acceleration later in Q3. BTC’s bounce from 9K support is now testing first important resistance at $10.2K coinciding with the July 27th highs, the underside of the 2019 just above the 15-day sma. What now? A rally above 10.2K would open BTC to a move to next resistance at 11.1K. Given 4-hour RSI is moving toward overbought territory a pullback would not be surprising with 9725 first support. Our expectation is for BTC to pause short-term then rally toward 11.1K for further consolidation through the summer. Slides 3-4
- Here you will find selected bullet points from Fundstrat technical analysis, Robert Sluymer, CFA.
- ETH and LTC – 3 reasons to expect a trading rebound. ETH and LTC are bottoming short-term and key trading support near rising 200-dma’s, their April consolidations and 62% retracements, RSI is bottoming and relative performance vs BTC is showing early evidence of reversing versus BTC. Slide 5-6