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The market data is provided by the HitBTC exchange.
Marcus Hughes, the United Kingdom lead counsel for major United States crypto exchange and wallet provider Coinbase, expects huge developments for Bitcoin (BTC) in the next two years.
Hughes is confident about the European Union coming up with a more defined regulatory framework for crypto in 2019. After the regulations are in place, Hughes anticipates large investment banks to finally enter the scene.
U.K.-based investor and entrepreneur Alistair Milne is confident that Bitcoin will break out of its lifetime high and sustain above it. He has based his opinion on the anticipated increase of the level of adoption of the leading cryptocurrency. Milne is certain that Bitcoin will survive for another 100 years.
Similar to how prices tend to overshoot to the upside during a bull market, they also usually overshoot to the downside. Changpeng Zhao, the CEO of Binance, believes that a lot of development has taken place in the crypto space, implying that cryptocurrencies are currently undervalued.
So should the traders start buying? Let’s find out.
BTC/USD
Bitcoin (BTC) has been trading below the moving averages since Jan. 10. Attempts by the bulls to push the price higher have been met with selling at the moving averages. This is a bearish sign.
The cryptocurrency hasn’t been able to make a higher high and a higher low, a signal that we were watching out for. A set of higher highs and higher lows would indicate a probable change in trend.
If the bears force the price below $3,236.09, it will be a new lower low that would confirm the continuation of the downtrend.
The first sign of a probable change in trend will be when the BTC/USD pair breaks out of the downtrend line and sustains above it. The recovery will gain strength if the bulls scale above $4,255. Until then, every rise to the resistance levels will be sold into.
We might suggest long positions closer to $3,236.09 if the price rebounds sharply from the support, because that would indicate a strong demand at lower levels. Another probable trade can be taken on a breakout above $4,255. Until then, we suggest traders remain in a wait and see mode.
XRP/USD
Ripple (XRP) has been trading in a tight range since Jan. 11. This is unlikely to continue for long. We expect either a breakout or breakdown from this range within the next few days.
The downtrending moving averages and the RSI in the negative area suggest that sellers are at an advantage. If the bears force a breakdown below the range, the XRP/USD pair can drop to $0.27795.
On the other hand, if the bulls push the price above the moving averages and the downtrend line, the digital currency can move up to $0.4. We suggest traders wait for a bullish pattern to form before jumping in to buy.
ETH/USD
Ethereum (ETH) plummeted below the immediate support of $116.3 on Jan. 20, but the bears could not sustain the lower levels. The bulls pulled back from the lows and closed (UTC time frame) above the support line.
If the ETH/USD pair fails to find buyers at higher levels and reverses direction, it can fall to $107.51, and if that support also breaks, a drop to $83 will be possible. The downtrending 20-day EMA, as well as the RSI in the negative territory confirm that the sellers have the upper hand in the short term.
The digital currency will show strength if it breaks out of $134.5. It can then rally to $167.32, which is likely to act as a stiff resistance.
BCH/USD
Bitcoin Cash (BCH) has been trading in a tight range of $120–$137.26 for the past 10 days. This shows that both the buyers and the sellers have stopped actively trading it.
If the bears push the price below $120, the BCH/USD pair can plunge further to $100, and below that a retest of the lows around $73.5 will be probable. The falling moving averages, and the RSI below 40 levels suggest that the sellers have the upper hand.
Our bearish view will be invalidated if the cryptocurrency scales above both the moving averages and the $137.26 mark. We shall wait for a reliable buy setup to form before proposing a trade.
EOS/USD
EOS is currently range bound between $2.3093 and $3.2081. The bears are attempting to break down of the range, while the bulls are trying to defend it.
On Jan. 13 and 14, the EOS/USD pair bounced off the support of the range, but the bulls could not carry it above the 20-day EMA. This is a bearish sign. Any break of the immediate support of the range, and the $2.1733 mark, can result in a fall to $1.7746, and further to $1.55.
Our bearish view will be invalidated if the cryptocurrency bounces off the support of the range and sustains above $2.5840. If that happens, a rally to the resistance of the range at $3.2081 will be possible. We might suggest long positions above $2.6.
XLM/USD
The bulls attempted to carry Stellar (XLM) higher on Jan. 19, but could not scale the 20-day EMA. Currently, the bears are attempting to break down of the immediate support at $0.10235190.
If they are successful, a drop to the yearly low of $0.09285498 will be probable. If this level breaks down, the XLM/USD pair will resume its downtrend. Both moving averages are sloping down, and the RSI is in the negative zone, which suggests that the bears have the upper hand.
The first sign of a likely change in trend will be when the bulls succeed in pushing the price above the downtrend line of the symmetrical triangle. A confirmation of strength will be when the pair sustains above $0.13427050. We shall wait for a trend reversal before recommending a long position.
LTC/USD
The bears are not allowing Litecoin (LTC) to sustain above the 20-day EMA, while the bulls are not allowing the price to plummet below $29.349.
If the LTC/USD pair plunges below $29.349, it could slide further to $27.701, below which a fall to the yearly lows of $23.090 will be likely. The downtrend will resume if the price breaks down to new yearly lows.
Conversely, if the bulls push the price above the 20-day EMA, the virtual currency could rally to $36.428, and beyond that to $40.784. The flat moving averages and the RSI close to 50 levels suggests a balance between the buyers and the sellers.
The next move will happen when this balance tilts in favor of either of the parties. For now, the traders who own long positions can keep a stop loss at $27.5.
TRX/USD
Tron (TRX) has corrected to the 20-day EMA, which might act as a support. However, if the bears break below this support, a fall to $0.02113440, followed by a drop to the 50-day SMA will be probable.
The TRX/USD pair has been range bound since Aug. 8, 2018. Attempts to break out or break down of this range have been unsuccessful and the price always returned into the range.
There are two possible trade opportunities. The traders can either buy closer to $0.0183 and expect the price to reach $0.02815521, or they can buy on a close (UTC time frame) above $0.02815521.
The uptrending moving averages suggest that the bulls have the upper hand. We shall turn negative on the cryptocurrency if the price slumps and sustains below $0.0183.
BSV/USD
Bitcoin SV (BSV) is gradually giving up ground, which shows a lack of buying support at the current levels. If the price sustains below $74.022, a drop to the next support at $65.031 will be probable.
The 20-day EMA is gradually sloping down, and the RSI is in the negative territory. This shows that the bears have an advantage in the short term. If the BSV/USD pair breaks below $65.031, it will result in liquidation of long trades. The supports on the downside are at $57, and below that at $38.528.
Our bearish view will be negated if the digital currency scales above both moving averages. We shall wait for the trend to turn positive before recommending any trades.
ADA/USD
Cardano (ADA) is currently trading inside an ascending channel. Usually, the price oscillates between the support and the resistance line of the channel. It reached the resistance line of the channel on Jan. 10, from where it turned down, and is now likely to fall down to the support line of the channel.
Having broken below the 20-day EMA, the ADA/USD pair might find support at the 50-day SMA. If this support breaks, the buyers might step in at the support line of the channel.
Our expectation of a drop to the support line of the channel will be invalidated if the cryptocurrency turns around from the current levels and breaks out of the 20-day EMA.
We couldn’t find any reliable buy setups at the current levels. The flat moving averages, and the RSI close to the midpoint suggest a consolidation in the near term. Because of these factors, we remain neutral on the pair.
The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.