Bitcoin and Altcoin Price Analysis: July 6, 2016

Jul 06, 2016 at 11:05 // Price

As we expected, this week the price of Bitcoin and altcoins remained stable. A sideways trend is typical for most cryptocurrencies at the moment.

Despite the fact that the world market is in a state of uncertainty, cryptocurrencies hold their positions.

Bitcoin (BTC)

The beginning of July hasn’t brought any significant changes for the Bitcoin price. The sharp rise up to the level of $764 on the eve of Brexit speaks of investors trust in Bitcoin.

Today the level of $665 is a support level, while $690 is a resistance level. Don’t forget that in three days we will have a two-times reduction in the reward for block mining. Considering this, high volatility of the Bitcoin price is expected.

USD/BTC exchange rates chart July 2016

USD/BTC exchange rates chart July 2016

Ethereum (ETH)

The exchange rates of USD/ETH pair tends to decrease. This is because of the relatively youth of ETH cryptocurrency, investors are cautious.

After the Brexit and uncertainty in global markets, investors prefer to sell ETH. It is obvious that the price of $10.80 is not the limit and the USD/ETH pair will continue to move to the level of $10.00, which is now a support level.

Overcoming this level will open the way to $9.00. Anticipation of the halving of rewards for Bitcoin mining will also bring a high probability of volatility of the ETH price.

USD/ETH exchange rates chart in July 2016

USD/ETH exchange rates chart in July 2016

Litecoin (LTC)

In the beginning of July the pair of USD/LTC is in trades between $4.28 - $4.55. The sharp decline in Litecoin prices on the eve of the Brexit speaks of a weak confidence in this altcoin among investors.

In general, the LTC price is directly dependent on Bitcoin price and anticipation of the halving of mining rewards in three days may substantially affect the price of USD/LTC. Today $4.15 is a support line. Resistance Line is $ 4.65.

USD/LTC exchange rates chart in July 2016

USD/LTC exchange rates chart in July 2016

Dogecoin (DOGE)

Today the USD/DOGE exchange rates reduced to the level of $ 0.00027. As in other cryptocurrencies there are no causes for Dogecoin price growth. The uncertainty in the global markets and the expected decline in rewards for Bitcoin block mining forces investors to be cautious. We expect movement USD/DOGE between the levels of $0.00026 - $0,003.

USD/DOGE exchange rates chart in July 2016

USD/DOGE exchange rates chart in July 2016

In anticipation of the double-declining of rewards for Bitcoin block mining the other cryptocurrencies are being traded moderately. We expect a high volatility of the main currency pair USD/BTC, which could lead to an abrupt change in value of this altcoin.

It remains an open question: whether to expect growth of Bitcoin in the coming days? 

This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency.

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