It’s a mixed bag for the two crypto-currencies we cover on Thursdays. While Dash is continuing the downtrend started last week, Ether is range-bound.
Ether in a Range
Ether prices failed to break above the 0.09322 swing high last week. A break of this level could kick-start a new rally. But after peaking out at 0.093 ETH/BTC saw continued losses every single day. We are now up to seven red (or black) candles in a row.
Despite the losses however prices are still short of starting a new downtrend. For that, we needed a break below the 0.05875 swing low. Until either of these levels is decisively broken, ETH will remain in a range on the daily charts. On the longer-term weekly charts, ETH/BTC is range-bound as well. Prices are staying in a bullish trend on the monthlies.
Dash Continues Downtrend
Dash is continuing the downtrend that began last week with the break below the important 0.06 support level. We are currently quoted at 0.055 Dash per BTC, down by 6.1 percent since our last update.
The trend lower will remain in force until we get a breakout above the 0.06858 swing high. A new uptrend requires a move beyond the 0.08 BTC level.
On the lower end, we have support at the 0.05 round figure. This is followed by a strong support area consisting of several previous swing lows at 0.04728, 0.046, 0.0448 and 0.04303 BTC. A clearing of this area with a move below 0.043 could exacerbate the losses for Dash. On the longer-term charts, DSH/BTC remains in a bullish trend.
Bitcoin Rally Continues
Part of the reason why we’re seeing continued losses in XXX/BTC pairs like ETH/BTC and DSH/BTC is the recent strong performance of bitcoin. The crypto is up by over 140% since the $1,810 lows one month ago. Big brother is trading at $4,425 right now, up by 8.6 percent from two days ago.
The main driver behind the gains is the signalling/activation of Segwit. More on the technical details about Segwit2x HERE. According to recent estimates, the activation of the upgrade is expected around 23:55 on August 22nd. Prices should remain well supported until we get closer to the event when ‘sell the news’ mentality may take over.
The bears need a break below the $3,230 swing low to end the current bull trend. But a new bearish trend will not commence until prices fall below the $2,500 level as well. On the weekly and monthly charts BTC/USD is in rally mode as well.
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