Cryptocurrencies Open the Week with Small Losses; Consolidation Game

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by | 18th June 2018 | 0 comments

Cryptocurrencies are playing the consolidation game after falling last week to its lowest level since February at 6,135 and failing to recoverable the 7,000 area. Bitcoin, bitcoin cash and Ethereum all are trading horizontally on Monday. The weekend was calm.

Italy seizes Bitgrail’s crypto king

The Italian government is pressuring Bitgrail after the company announced bankruptcy proceedings following a hack that evaporated $170 million earlier this year. Florence court banned the platform from operations with virtual currencies in May.

Bitgrail said that issuer company’s developers damaged nano cryptocurrency after citing buggy code, not company’s fault. Later, the company seems to be doing steps to relaunch the platform, but some investors said it was a trick to turn victims in new investors by offering a new token in exchange of the lost one.

Then, the Italian government intervened to protect customers, and it seized Bitgrail all digital assets.

“On June 5, 2018, pursuant to the Tribunal of Florence orders, the Bitcoins contained in the company’s wallets were seized and brought under control of the judicial authorities pending further Court decisions in the prebankruptcy proceeding,” said BitGrail in at official note dated on June 15.

Bitcoin opens down, but it remains on the range

The crypto king is trading horizontally on Monday as investors are waiting for news on regulation and positive notes about the industry. Bitcoin just closed its sixth negative week in the last 7.

BTC/USD is trading 0.20% negative on Monday at 6,435. The pair remains inside a range between 6,300 and 6,700 after bouncing from 2-month lows at 6,135.

Technically, the chart shows moving averages confirming the downtrend with Momentum supporting the current movement.

If the pair manages to break the range to the downside, it will find next support at the 6,000 level with a focus on the critical 5,870 line. Below, only the 5,550.

To the upside, the pair needs to recover the 6,800 area before start believing in a recovery. A break above 6,900, will open the doors to the 7,200 and 7,300 levels.

Ethereum remains below 500.00

ETH/USD Daily Chart - 18-06-18

The second largest cryptocurrency by market value opened the week with a slight decline following a peaceful weekend. Ethereum is trading in a range between 485.00 and 510.00 after recovering from lows since April at 488.00.

ETH/USD is trading 0.70% down on Monday as the pair is pricing at 493.00 right now. Technically, the pair points to the south as moving averages are aligned to the downside and momentum is confirming the downtrend. At least in the middle term.

To the downside, if the pair breaks the bottom of the range, and falls below the 450.00, Ethereum will find support at 430.00. Then, the last frontier lies at 400.00.

To the upside, Ethereum needs to consolidate levels above 500.00 before making bulls believing. Above that, 560.00 is the natural resistance and then 630.00.

Bitcoin Cash trapped at lows

BCH/USD Daily Chart - 18-06-18

Bitcoin Cash is trading at lows of the last three days as investors are not comfortable to buy this cryptocurrency at least for now. BCH/USD is trading in a range between 835.00 and 865.00.

On Monday, the pair is down 1.22% at 836.40. The cross looks oversold, but MACD is pointing for a further downside.

To the downside, if the pair breaks below the range, it will find next support at 800.00, then 750.00 and the critical 600.00 area.

To the upside, the pair needs a close above the 900.00 level to seduce more bulls. If the pair consolidates levels above the mentioned price, next resistances will be at 990.00, 20-day moving average, the 1,000 mark and 1,188.00, the 50-day MA.

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