WTI crude oil price today plunged over 92% to hit an intraday low of $1.1 per barrel at press time, a level which none of us would have even imagined to see just a few months back. This year alone, the asset class is down by over 98%.
Excess production, a sharp drop in demand due to the ongoing pandemic, margin calls and the rising popularity of electric cars are some of the factors that have soured sentiment in the asset class.
Though the fiat currencies have held up well during the current crisis, the incessant money printing, loss of trust in the central banks and fiat losing value could lead to a currency crisis in the future. We already see many investors piling up on gold to protect their purchasing power. In the future, as investors recognize the potential and advantages of crypto, huge money is likely to flow into the sector.
Daily cryptocurrency market performance. Source: Coin360
Renaissance Technologies’ Medallion Funds has received the green signal from the regulator to invest in the Bitcoin futures market. Renaissance plans to trade only in the “cash-settled futures contracts traded on the CME.” Renaissance’s $10 billion hedge fund has been in the news this year as it has been a huge outperformer, gaining 24% in 2020 when several funds are nursing huge losses.
In another positive, the regulators in Hong Kong have given permission to Arrano Capital, the blockchain arm of Venture Smart Asia, to launch a cryptocurrency fund. Venture Smart Asia targets $100 million under management for the tracker fund, which will be buying and selling Bitcoin. Later in the year, the fund hopes to launch a second fund dealing with a basket of tokens.
BTC/USD
Though the bulls have not been able to propel Bitcoin (BTC) above the overhead resistance of $7,454.17, they have maintained the price above the moving averages, which are on the verge of a bullish crossover.
BTC USD daily chart. Source: Tradingview
If the BTC/USD pair bounces off the current levels and rallies above $7,454.17, it is likely to pick up momentum and quickly move up to $8,000. After a minor consolidation or a dip at this level, we anticipate the rally to extend to $9,000 levels.
However, if the bears sink the price below the moving averages, a drop to $6,471.71 is possible. If this level holds, the pair might remain range-bound between $6,471.71 and $7,454.17 for a few more days.
Our bullish view will be invalidated if the pair drops below $6,471.71. Therefore, the traders can protect the long positions with stops at $6,000.
ETH/USD
Ether (ETH) rallied and closed (UTC time) above the overhead resistance of $176.103 on April 18. This was a huge positive but the bulls have not been able to build upon this move. This shows hesitation at higher levels.
ETH USD daily chart. Source: Tradingview
Nonetheless, if the ETH/USD pair rebounds off $176.103 and rises above $189.402, a rally to $208.50 and then to $250 is possible.
If the bears sink the price below $176.103, a drop to the 20-day EMA is possible. The bulls have been defending the 20-day EMA for the past few days, hence, we expect the ETH/USD pair to rebound off this support.
Contrary to our assumption, if the bears sink the pair below the 20-day EMA and the horizontal support at $148, the trend will turn in favor of the bulls. Therefore, the stop loss on the long positions can be trailed higher to $145.
XRP/USD
XRP is trading close to the middle of the $0.20570-$0.17372 range. The flat moving averages and the RSI just above the 50 level suggests a balance between the bulls and the bears.
XRP–USD daily chart. Source: Tradingview
A break above $0.20570 will indicate that the bulls have overpowered the bears. Above this level, the rally can reach $0.25. We anticipate this level to act as resistance. But if crossed, the up move can extend to the long-term downtrend line at $0.28.
On the other hand, if the bears sink the XRP/USD pair below the support at $0.17372, a drop to $0.145 is possible. The stops on the long positions can be trailed higher to $0.165.
BCH/USD
Bitcoin Cash (BCH) is facing stiff resistance at the overhead resistance at $250. The 20-day EMA is flat and the RSI is just below the midpoint, which suggests range-bound action for a few days. The level to watch on the upside is $250 and on the downside is $200.
BCH–USD daily chart. Source: Tradingview
A break above the $250-$280.47 resistance zone will be a huge positive. Above this zone, the BCH/USD pair can rally to $350.
Conversely, if the bears sink the pair below the immediate support at $200, a drop to $166 is possible. Therefore, the traders can retain the stop loss on the remaining long positions at $197.
BSV/USD
Bitcoin SV (BSV) has been trading inside the $227-$170 range for the past few days. The bounce off the support of the range on April 16 fizzled out at $209.580 on April 18, which shows a lack of buyers at higher levels.
BSV–USD daily chart. Source: Tradingview
Both the moving averages have flattened out and the RSI is close to the 50 levels, which points to a range-bound action for a few more days.
If the bears sink the BSV/USD pair below $170, a drop to $146.20 is possible. Therefore, the stops on the long positions can be retained at $165.
On the other hand, if the bulls can drive the price above the overhead resistance at $227, the pair is likely to pick up momentum. Above this level, a rally to $268.842 and then to $319.424 is possible.
LTC/USD
The bulls are struggling to propel Litecoin (LTC) above the $43.67-$47.6551 resistance zone. The 20-day EMA ($42) has flattened out and the RSI is just below the 50 level, which suggests a balance between the bulls and the bears.
LTC–USD daily chart. Source: Tradingview
If the LTC/USD pair dips below the 20-day EMA, a drop to $35.8582 is likely. If this level holds, the pair is likely to remain range-bound for a few more days.
Conversely, if the pair bounces off the current levels and breaks above the resistance zone, a new uptrend is likely. Above $47.6551, a rally to $63 is possible. The traders can keep the stops on the long positions at $35.
EOS/USD
EOS has been trading between $2.3314 and $2.8319 for the past few days. The moving averages are on the verge of a bullish crossover and the RSI is just above the midpoint, which suggests that the bulls are at a marginal advantage.
EOS–USD daily chart. Source: Tradingview
A break out of $2.8319 will signal strength. Above this level, a rally to $3.1802 is possible. Though the bears might attempt to defend this level, we expect it to be crossed. If the momentum is strong, the up move can extend to $3.8811.
Contrary to our assumption, if the EOS/USD pair turns down from the current levels or $2.8319 and slips below $2.3314, the trend will turn negative. Therefore, the stops on the long positions can be trailed to $2.20.
BNB/USD
Binance Coin (BNB) has been trading inside a bearish rising wedge pattern for the past few days. If the bears sink the price below the wedge and the horizontal support at $13.65, it will be a huge negative. Therefore, the stop loss on the long positions can be kept at $13.
BNB–USD daily chart. Source: Tradingview
The 20-day EMA is sloping up gradually and the RSI is just above the midpoint. This suggests that the bulls have a slight edge.
The BNB/USD pair is likely to pick up momentum after it breaks above the rising wedge. The failure of a bearish pattern is a bullish sign. If the bulls can drive the pair above $17.50, a move to $21.50 is possible.
XTZ/USD
Tezos (XTZ) broke above the overhead resistance of $2.185 on April 18. Currently, the bulls are attempting to keep the price above the breakout level. If successful, an uptrend to $2.75 is likely.
XTZ–USD daily chart. Source: Tradingview
However, if the XTZ/USD pair dips below $2.185, a drop to the 20-day EMA is possible. The bulls have not allowed the price to dip below the 20-day EMA since April 7, hence, we expect the pair to rebound off it once again.
The moving averages are on the verge of a bullish crossover and the RSI has been trading in the positive territory, which suggests that bulls have the upper hand. If the bulls can carry the price above $2.3756, the uptrend will resume.
Conversely, if the bears sink the pair below the 20-day EMA ($2), a drop to $1.8271 is possible. A break below this support will be a huge negative. Therefore, the traders can retain the stop loss on the long positions at $1.75.
LINK/USD
Chainlink (LINK) broke above the overhead resistance of $3.6412 on April 18 but the bulls have not been able to capitalize on the breakout. This shows selling at higher levels.
LINK–USD daily chart. Source: Tradingview
If the LINK/USD pair dips below $3.447, it can drop to the 20-day EMA ($3.16) where it is likely to find support. If the pair bounces off this level, the bulls will make one more attempt to push the price above $3.83. If successful, a rally to $4.2023 is possible.
The 20-day EMA is sloping up and the RSI has been trading in the positive territory, which suggests that bulls have the upper hand.
Contrary to our assumption, if the bears sink the pair below the 20-day EMA, it will signal weakness. A break below $2.945 will be a huge negative.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.