A popular analyst is setting updated price targets for a trio of cryptocurrencies as the markets head into the weekend.
The pseudonymous crypto trader Altcoin Sherpa first examines the possibility that Bitcoin (BTC) is in an accumulation phase and priming for a major rally in the coming weeks, but cautions his 182,600 Twitter followers that prevailing bearish sentiment makes this hypothesis unlikely.
“I don’t see this as the bottom quite yet but if it is, I am expecting $18,000 to get taken out regardless.
Some sort of double bottom / longer accumulation bottom are two potential patterns that you might see.
Still, the trend is bearish so don’t expect this.”
The analyst says he is intently watching the $19,000 level as a zone of strong support for BTC but warns inexperienced traders against investing in Bitcoin at that price.
“I still think that $19,000 is the area of interest for me, lots of support around there.
It’s a very choppy environment, I wouldn’t recommend actively trading unless you know what you’re doing.”
Bitcoin’s price went on a roller-coaster ride all week, currently priced at $19,920.
Altcoin Sherpa next analyzes the mid-August price surge that briefly sent Ethereum (ETH) back above $2,000. He’s eyeing $1,730 as a possible make-or-break zone for the leading smart contract platform.
“I still think this recent move was a bear market rally but I will keep watching it – if we see a strong break of the recent highs, maybe some sort of [cup and handle] pattern will play out?
$1,730 still a strong area to watch.”
The analyst next provides a chart plotting out Ethereum’s exponential moving averages (EMAs) meandering through four-hour candles dating back to early July. He foresees a breakout past $1,800 but remains unsure where ETH will go afterward.
“It’s nice to see the EMAs resetting a bit. I wouldn’t be surprised to see this be the relative bottom.
I think that we see more ranging for a bit longer and then a move up to $1,800 at a minimum – after that, I have no idea.
Watch double tops.”
Ethereum saw a mostly positive week of trading and quickly rebounded from a dip below $1,500 last Sunday.
ETH is currently priced at $1,573.
Last on the chart expert’s list is Chiliz (CHZ), the utility token of sports fan engagement platform Socios.com which has been on an incredible run over the past weeks. The CHZ token is up over 130% since early July.
Altcoin Sherpa believes Chiliz will inevitably have to retrace after such a big rally but adds that he’s not willing to bet against the altcoin just yet.
“Expecting this to make another run at the highs but overall, I think this probably is going to go lower after such a strong run.
Not shorting here, though.”
Chiliz is currently the 50th-largest crypto asset by market cap, up 3.90% over the past 24 hours and trading for $0.21.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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