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Market data is provided by the HitBTC exchange.
Analysts are projecting various lower levels on Bitcoin where they anticipate it to bottom out. The number ranges from below $2,000 to about $2,500. Investment and analysis firm Fundstrat Global Advisors, which till a few months back was projecting a target of $15,000 on Bitcoin, has come up with a likely bearish target of $2,270.
While the analysts are busy figuring out the probable bottom and speculating on what can cause the turnaround, Changpeng Zhao, CEO of Binance has said that the crypto industry needs “more entrepreneurs to build real projects.” As the fundamentals improve, price will have to follow through to the upside. The recent increase in daily Bitcoin transactions to the same level as January 2018 is a positive sign.
The situation in Venezuela shows how cryptos offer a ray of hope for the citizens during a crisis. Following the crisis, Bitcoin trading volume in Venezuela has risen sharply.
BTC/USD
Bitcoin (BTC) has been sliding lower for the past few days. It has been trading below the 20-day EMA, which shows that the bears have the upper hand. However, the 50-day SMA is still flat, which suggests that the trend in the medium-term is still range-bound.
The downtrend will resume on a breakdown of the $3,355–$3,236.09 support zone. The next support on the downside is at $3,000 and below that at $2,600.
However, if the bulls defend the support zone and push prices above the moving averages and the downtrend line, it will indicate a possible reversal. A rally above $4,255 will confirm a double bottom that has a pattern target of $5,273.91.
We will wait for the BTC/USD pair to sustain above the downtrend line before suggesting any trade in it.
XRP/USD
Ripple (XRP) is trying to bounce off the critical support at $0.27795. This is the third time the digital currency has visited this level in the past two months. The 20-day EMA is sloping down and the RSI is in the negative zone. This shows that the bears have an advantage in the short term.
A break below $0.27795 can result in a drop to $0.24508, below which the downtrend will resume. However, if the XRP/USD pair bounces off the support at $0.27795 and breaks out of both the moving averages, it will indicate a probable bottom. Hence, we might suggest long positions on a breakout and close above $0.33108.
ETH/USD
Ethereum (ETH) held on to the bottom of the range on Feb. 6. Currently, the bulls are attempting to rise above the 20-day EMA and the top of the range at $116.30. If successful, it can move up to the 50-day SMA. On clearing $134.50, a rally to the overhead resistance at $167.32 is probable. As the risk-reward is attractive, we recommend long positions on a close (UTC time frame) above $116.30 with a stop loss of $100.
Conversely, if the ETH/USD pair fails to break out of the range and turns down from $116.30, it will extend its consolidation. It will weaken and drop towards $83 if the bears break below $103.20.
LTC/USD
The bulls defended the support at the moving averages for the past two days and Litecoin (LTC) has surged higher today, reaching close to the overhead resistance of the downtrend line. We anticipate a strong resistance close to $40.784. Hence, a couple of days of consolidation or a minor dip at the current levels cannot be ruled out.
A breakout of $40.784 will carry the LTC/USD pair to the next resistance at $47.246. We recommend retaining a stop loss on the long positions at $27.50. If the price sustains the higher levels today and extends its up move, we will trail the stops higher.
Conversely, if the bulls fail to sustain the higher level and the pair turns down, it can correct to the support at $33. There are a slew of supports between $27.701 and $33. The trend will turn down on a break below $27.701.
EOS/USD
EOS is attempting to bounce from the $2.30 support. A breakout and close above both the moving averages and $2.5944 can result in a rally to $3.05 and above it to $3.2081. Long positions can be initiated on a close (UTC time frame) above $2.5944 with a stop loss below $2.1733.
If the EOS/USD pair turns around and slumps below the support at $2.1733, it can fall to $1.7746 and below it to $1.55. The flat moving averages suggest that the pair will continue to consolidate for the next few days.
BCH/USD
Bitcoin Cash (BCH) is range-bound between $105 and $121.30. The next move will start either on a breakout or a breakdown from the range.
A breakout of $121.30 can push the BCH/USD pair towards the next overhead resistance of $141. Both the moving averages are flat. They point to a consolidation in the short to medium-term.
Conversely, if the bears sink the pair below $105, a fall to $73.50 is possible. Though there is a minor support at $100, we expect it to be broken. The short-term traders can stay on the long side on a close (UTC time frame) above the 20-day EMA, but they should aim for small targets and keep a tight stop. Positional traders can wait for a buy setup to form before jumping in.
TRX/USD
Tron (TRX) continues to trade inside the symmetrical triangle. For the past two days, the support line of the triangle was defended by the bulls.
The TRX/USD pair has to scale the major hurdle at $0.02815521 before it makes a dash to the upside targets of $0.03575668 and above it $0.038.
Any break of the triangle and the 50-day SMA will be negative and can result in a fall to $0.02113440 and below it to $0.0183. Therefore, traders can keep the stop loss on their long positions at $0.023.
XLM/USD
Stellar (XLM) has been in a strong downtrend. Currently, there is an attempt by the bulls to stage a pullback from deeply oversold levels on the RSI. Overhead, the 20-day EMA, $0.09285498, the downtrend line and the 50-day SMA will act as stiff resistances.
Should the price turn down from any of the resistance levels mentioned above, a retest of the lows and on a breakdown, a drop to $0.05795397 is probable.
However, if the bulls succeed in carrying the XLM/USD pair above the 50-day SMA, a rally to $0.13427059 is likely. As the trend is still down, we shall wait for it to change before suggesting a trade in the pair.
BNB/USD
After a minor dip on Feb. 7, the bulls are again attempting to resume the up move in Binance Coin (BNB). Both the moving averages are sloping up and the RSI is near the overbought zone, which shows that the buyers have the upper hand.
If the bulls sustain above the intraday high of Feb. 6 at $8.7630584, the BNB/USD pair is likely to reach $10. We expect a major supply in the region of $10 to $12 leading to a minor correction.
On the downside, any pullback will find support at the 20-day EMA and below it at the 50-day SMA. Our bullish view will be invalidated if the price plunges back into the channel.
BSV/USD
Bitcoin SV had a large range day on Feb. 6 when it recovered from its intraday lows and ended marginally in the green. After an inside day candlestick pattern on Feb. 7, the bulls are again attempting a recovery today.
Currently, the BSV/USD pair is facing resistance at the 20-day EMA that is sloping down. A breakout of this level can carry the pair to $80.352. The 50-day SMA is located just above this level, hence, we expect it to act as a stiff resistance.
On the other hand, if the digital currency fails to scale the 20-day EMA and turns down from here, it will be a negative sign. The next support on the downside is at $57. We shall wait for a trend reversal to be signaled before proposing a trade in it.
Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.