CRYPTOCURRENCIES – August 21, 2022

Mixed performance for cryptocurrencies. Sharp reversal on BTCUSD reminds us the bearish outlook once again. Some of the altcoins managed to offer short-term uptrends while others continued to remain rangebound.

TWTUSD

The pair formed a 3 month-long ascending triangle with the upper boundary acting as resistance at 1.57 levels. Another test of the upper boundary will put this chart on high alert status. Breakout above 1.57 can push TWTUSD to all time highs and target 2.90 levels in a short period of time.

BTCUSD

BTCUSD completed a multi-month long rectangle with the breakdown below 28.6K levels. Last few weeks price action is more like a rebound in a downtrend. 28.6K is the new resistance. Medium-long term positive outlook will be confirmed only after a recovery above the horizontal resistance at 28.6K. So far the slope of the rebound is more like a counter-trend reaction. If the pattern is a bear flag and is followed by another week of weakness, possible price target at 13K will remain in focus.

Last 2 month’s price action has taken BTCUSD from 17.6K to 25K. The rebound had difficulty to recover the losses of June sell-off. Sharp drop followed by choppy upside still tells me that this is a counter trend recovery in a steady downtrend. 21.9K is the short-term support. Breakdown below 21.9K can resume the downtrend towards 13K. I look for another day of weakness similar to Friday’s to confirm the breakdown from the possible bear flag.

ETHUSD

ETHUSD failed to hold above 1,726 levels which I view as an important hurdle that would put the pair into bullish territory. Failure to recover above 1,726 can resume the downtrend towards 1,270 levels.

XLMUSD

XLMUSD continues to remain sideways and between well-defined boundaries of 0.10 and 0.15. Another test of the lower boundary at 0.10 levels will risk the rectangle breaking down with the price target of 0.07. Until there is a breakdown or breakout price offers trading opportunity between well-defined boundaries.

THETAUSD

The pair had a failed breakout above the 1.52 resistance. Price is back to the consolidation range between 0.99 and 1.52 levels. Both price targets are calculated incase of a breakdown or a breakout from the 3 month-long rectangle.

CHZUSD

CHZUSD had a successful strong breakout followed by a pullback and continuation towards the price target and beyond. During any sharp pullback 0.13 levels is expected to act as support.

IOTXUSD

IOTXUSD is consolidating between 0.03 and 0.054 levels. Breakdown below the lower boundary at 0.03 levels can confirm the rectangle as a bearish continuation chart pattern with the price target of 0.0168 levels. Strength from current levels can target the upper boundary of the rectangle at 0.054 levels. Breakout above the upper boundary can confirm the rectangle as a bottom reversal with the price target of 0.078 levels.

ALICEUSD

ALICEUSD is possibly forming a 3 month-long rectangle with price consolidating between 1.82 and 3.28 levels. Both boundaries have been tested several times. Breakout above 3.28 levels can target 4.75 levels and confirm the rectangle as a bottom reversal. For now the pair offers trading opportunity between boundaries. Breakdown below 1.82 levels can confirm the rectangle as a bearish continuation chart pattern with the price target of 1.2 levels.

SNXUSD

SNXUSD completed the 2 month-long H&S bottom reversal with a breakout above the horizontal boundary at 3.4 levels. Price failed to reach the H&S bottom price target at 5 levels. Chart pattern negation levels stands at 2.12 levels. Another pair that is possibly going through a failed breakout. Breach of 2.12 levels can act as a short signal.

IOSTUSD

IOSTUSD weekly chart completed a year-long rectangle with the breakdown below 0.016 levels. Price still remains below the lower boundary and risks downward acceleration towards the chart pattern price target at 0.0035. A recovery above 0.016 levels can become a failed breakdown and suggest higher prices. In case of a breakout above 0.016 levels, the pair can offer a good long opportunity with well-defined risk (protective stops) being below the horizontal lower boundary. Breakdown below 0.012 levels can accelerate the downtrend.

AUDIOUSD

Following the breakdown below 0.7 levels, AUDIOUSD completed a year-long rectangle that acted as a top reversal with the price target of 0.14 levels. Downtrend is still intact. Price action can be a sideways consolidation that can act as a bearish continuation chart pattern.

 

ANKRUSD

ANKRUSD is another weekly chart that shows the rectangle acting as top reversal. Breakdown below 0.05 levels confirmed the bearish setup with the price target of 0.014 levels. Downtrend is still intact and there is no bottom reversal chart pattern on daily scale price charts. So far the price action seems like a breakdown followed by a pullback to the previous support level.

RUNEUSD

RUNEUSD completed a year-long descending triangle with the breakdown below 3 levels. So far the price action looks like a rebound towards the broken support. 3 acts as resistance. Descending triangle price target stands at 0.5 levels. Recovery above 3 levels can result in a failed breakdown and suggest higher prices. In case of a breakout above 3 levels, the pair will offer a good long opportunity with well-defined risk being slightly below the horizontal boundary at 3 levels.

DUSKUSD

I’ve adjusted the boundaries of the rectangle on DUSKUSD. The upper boundary is acting as resistance at 0.184 levels. Breakout can target 0.268 levels. Price remains in trading range between 0.1 and 0.184 levels.

RENUSD

RENUSD formed a possible 3 month-long H&S bottom reversal with the neckline at 0.17 levels. Completion of the short-term H&S bottom became part of a pullback towards the broken support at 0.276 levels and was not be enough to start a new uptrend. This was a short-term opportunity that met its price target.

SANDUSD

SANDUSD is another pair with a H&S bottom reversal that can act as a short-term reversal pattern. The neckline stands at 1.5 levels. Breakout can target 2.3 levels and this can still be part of the rebound towards the broken support at 2.64 levels. I think the pattern is still morphing in searching for the low for the right shoulder.