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Market data is provided by the HitBTC exchange.
Hackers stole 913 bitcoins from Canadian cryptocurrency exchange MapleChange. Though the exchange was small, repeated news of hacks are a major deterrent to the entry of institutional investors into the crypto industry. Responsible for managing large sums of money, traditional financial organizations are unwilling to take significant risks.
Therefore, Fidelity’s entry into the custody service business is a big positive, as it will assure institutional investors have the same level of security that they are used to with traditional assets. After all, Fidelity has been managing billions of dollars securely for decades.
Similar offerings by other large players will also attract the investors who have so far stayed away out of fear of the lack of appropriate security.
A private equity and investment firm NXMH has acquired Bitstamp, one of the world’s largest cryptocurrency exchanges. NXMH, which is a subsidiary of Barclays, one of the U.K.’s largest banks, has reportedly paid $400 million for the deal.
Investments like these show the confidence of the large players in the future of cryptocurrencies.
In terms of adverse news, the Nature Climate Change journal has projected that Bitcoin could push global temperature by over 2 C by 2034 if it gets adopted at the same pace as other major technologies.
Let’s see how the markets are reacting to these headlines.
BTC/USD
A break below $6,500 has attracted selling that has dragged Bitcoin lower. The next support on the downside is $6,200, below which a retest of the critical support zone of $5,900–$6,075.04 is likely.
The movement of the BTC/USD pair on dips will give us an idea about the next direction. If the price rebounds sharply from the support, it will indicate that there is buying on dips.
However, if the digital currency easily breaks down of the support, it will suggest selling by the bears. A close below $5,900 will be a negative development that might trigger a number of protective stops, dragging the price to the next support lines of $5,450 and $5,000. Therefore, traders who own long positions can keep their stops at $5,900.
At times, the first break out of a tight range turns out to be a fake move. Therefore, we will have to watch for a couple of days before confirming that the trend has turned down decisively.
ETH/USD
After failing to break out of the 20-day EMA for the past few days, Ethereum has turned down. It can correct to the next support at $188.35, which had held on two previous occasions.
However, this time, the downward sloping moving averages and the RSI below 40 shows that the sellers are in command. A break below $188.35 can sink the ETH/USD pair to $167.32, below which the downtrend will resume.
The bearish view will be negated if the price rebounds sharply from the supports and scales above the moving averages. Above $249.93, the pair might start a new uptrend, pushing the price to $322.57.
XRP/USD
After hugging the 20-day EMA for the past few days, Ripple fell today, breaking below both moving averages. Currently, we see some buying at the intraday lows, which is a positive sign.
The XRP/USD pair has support at $0.37185, which might hold. If this support breaks, the fall can extend to the next support zone of $0.24508–$0.26913.
On the upside, a break out of $0.48 will indicate strength. We might suggest long positions after the digital currency sustains above $0.5. Our outlook on the pair is positive because the 50-day SMA is turning up and the 20-day EMA is flat.
BCH/USD
After trading close to the support line for the past few days, Bitcoin Cash broke down of the symmetrical triangle today. Though the pattern target is way lower, we anticipate a fall to $300, which might act as a support.
Though there is a minor support at $408.0182, we expect it to be broken. The downtrending moving averages and the RSI close to the oversold territory suggest a further fall. The traders holding long positions can square off at $400. The BCH/USD pair will invalidate our bearish view if it breaks out and closes above $500.
EOS/USD
After trading close to both moving averages since Oct. 16, EOS plummeted today. It has a minor support at $5, below which the fall can extend to $4.49. Therefore, we suggest traders keep the stops on the existing position at $4.9.
The EOS/USD pair will show strength if it bounces off $5 and climbs above $6.1. As long as the price remains below both moving averages, every attempt to rally will be met with selling at higher levels.
XLM/USD
Stellar has broken down of the moving averages. It can now correct to the next support zone of $0.184–$0.2.
With the current fall, the bears have managed to stall the pullback at the downtrend line of the descending triangle for the fourth time. A break down of $0.184 will complete the descending triangle pattern that can result in a fall to the next support at $0.08. The XLM/USD pair will turn positive above the downtrend line of the descending triangle.
LTC/USD
Litecoin has been declining for the past few days and is currently at the support of $49.466. This level has held on three previous occasions. Therefore, it will act as a strong support. However, if the bears succeed in breaking and closing (UTC time frame) below this level, it will complete a bearish descending triangle pattern that can result in a fall to $40, and below that to $29.
The LTC/USD pair will signal strength if it rebounds from the support and breaks out of the triangle at $60. Failure of a bearish pattern is a bullish sign. Therefore, above $60 we anticipate an attempt to break out of the range at $69.279.
ADA/USD
Cardano has broken down of the symmetrical triangle. If the bears succeed in closing (UTC time frame) below the support line of the triangle, it will increase the probability of a fall to the bottom of the range at $0.060105. Though there is a support close to $0.07, the down sloping 20-day EMA and the RSI in the negative zone suggest that it is likely to be broken. The digital currency will resume the downtrend if it breaks below $0.060105.
The bearish view will be invalidated if the bulls succeed in pushing the price above the triangle. Such a move might carry the ADA/USD pair to the top of the range at $0.094256. A break out of the range increases the probability of a reversal and the start of a new uptrend.
XMR/USD
Though Monero is trading in a range, it has a negative bias. The price has dropped to the bottom of the $100.453–$128.65 range.
Both moving averages have started to turn down and the RSI has declined into the negative territory. This shows that the bears have an upper hand.
A break down of $100.453 will sink the XMR/USD pair to the critical support at $81, below which the downtrend will resume.
TRX/USD
TRON has broken down of the 50-day SMA, which can drag it to the next support at $0.0225. A break of this level will indicate that the bears are in charge of the situation.
The TRX/USD pair will resume the downtrend if it breaks down and closes (UTC time frame) below the critical support at $0.0183. The next level to watch on the downside is $0.01095383.
Our negative view will be invalidated if the bulls rebound from the supports and scale above $0.025. The digital currency will indicate a probable trend reversal if it sustains above $0.03.
The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.