Cryptocurrencies Price Analysis, Jan. 9
- 2019-01-10 03:01 AM
Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Stellar, Tron, Bitcoin SV, Cardano: Price Analysis, Jan. 9
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The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The market data is provided by the HitBTC exchange.
Some of the most prominent investors continue to back cryptocurrency and the blockchain technology. Hong Kong billionaire Li Ka-shing has invested in the latest funding round of Intercontinental Exchange’s (ICE) crypto trading platform Bakkt through his venture capital firm Horizon Ventures.
Similarly, Wall Street investor Bill Miller, who had invested in Bitcoin previously, expects the leading cryptocurrency to be worth either a lot more or zero.
According to Miller, he likes to keep cryptocurrencies in his portfolio because their performance is decoupled from the traditional asset classes. Though an active investor, he considers himself a “Bitcoin observer,” but not a “believer” yet.
On the other hand, the Winklevoss brothers are big believers in cryptocurrencies. They expect the market capitalization of Bitcoin to cross that of gold in the future. Because of that, they continue to support the idea of a Bitcoin exchange-traded fund (ETF).
The recent Ethereum Classic (ETC) 51 percent attack has many worried whether the same can be happen to Bitcoin in the future. The opinions are divided, but such challenges are to be expected in a new asset class. This will only encourage the participants to find solutions to avoid such attacks in the future.
Bitcoin has been trading near the neckline for the past two days. The bulls have been unable to complete the inverse head and shoulders pattern, but they have not given up much ground either. This is a positive sign.
Both moving averages are flattening out, which suggests a change in trend. If the BTC/USD pair climbs above $4,255, it will signal the formation of a short-term bottom. Hence, we have recommended a buy in one of our earlier analyses. The pattern target on a break out of the inverse head and shoulders pattern is $5,500.
If the bears sink the digital currency below the right shoulder, the sentiment will turn bearish and can result in a retest of the low of $3,236.09. If this support breaks, the downtrend will resume.
The bears have been defending the $167.32 mark for the past seven days. If Ethereum breaks down of the uptrend line and the 20-day EMA, it can dip to the 50-day SMA at $120.
On the other hand, if the bulls break out of $167.32, the ETH/USD pair can rally to the next level of $225 and above it to $249.93. Hence, traders can buy on a close above $167.32 and keep a stop loss of $130.
The 20-day EMA is trending up and 50-day SMA is flat, which shows that the downtrend is over. Therefore, traders should look to buy on dips, as long as the price remains above the 50-day SMA. A break of this moving average can result in a drop to $100 and below that to $83.
Ripple has been trading in a tight range for the past few days. Both moving averages are flat and the RSI is close to the neutral zone, which suggests a balance between demand and supply.
The balance will shift in favor of the bulls when the XRP/USD pair rises above $0.4. Though the pattern target is $0.52205, the resistance line of the descending channel can act as a roadblock.
The digital currency will turn negative if it breaks below the support at $0.32615. Traders can initiate long positions on a close (UTC time frame) above $0.4 with a stop loss at $0.32.
After a strong run from the lows, Bitcoin Cash has been consolidating in a tight range for the past few days. Both moving averages have flattened out, which shows a balance between the buyers and sellers.
A break out of the range can resume the recovery and propel the BCH/USD pair to the next target of $307.01, with a minor resistance at $239.
Therefore, we suggest traders wait for a breakout and close (UTC time frame) above $181 to enter long positions. The stop loss can be kept at $138. A break below $141 will be a negative development that can result in a drop to $100 and below that to $73.5.
EOS has been stuck in a range for the past few days. Both moving averages are flat, and the RSI is just above the neutral territory. This suggests that the consolidation might extend for a few more days.
The longer the consolidation, the stronger will be the breakout or breakdown from it. Therefore, we recommend long positions on a breakout and close (UTC time frame) above $3.2081. The targets to watch on the upside are $3.8723, $4.1069 and $4.493.
If, however, the EOS/USD pair plunges below the range, it can decline to the low of $1.55. Therefore, the stop loss on the proposed long positions can be kept at $2.29.
Litecoin has stayed above the neckline for the past three days but hasn’t been able to move higher. This shows a lack of buying at higher levels.
However, if the bears fail to break below the neckline and the 20-day EMA within the next couple of days, buyers will likely step in. The targets to watch on the upside are $47.246 and $56.910. The stop loss can be kept at $27.5, which can be trailed higher as the price moves up.
We are bullish because the LTC/USD pair has formed a reversal pattern and the moving averages have completed a bullish crossover. All these point to a probable bottom at $23.1.
Our view will be negated if the cryptocurrency slips below the moving averages and the $27.701 mark. The downtrend will resume on a fall below $23.1.
Stellar has not shown a meaningful recovery in the recent pullback. It continues to face resistance at $0.13427050. The pair is currently trading inside a symmetrical triangle.
The resistance line of the triangle, the 50-day SMA and the horizontal resistance at $0.13427050 are all located close to each other. Therefore, once the XLM/USD pair rises above this cluster of resistances, it can move up to $0.184, which might act as a stiff resistance.
On the other hand, a break below the triangle can result in a retest of the lows. A break below $0.09285498 can resume the downtrend. We might propose a trade after the break out of the resistance sustains for a day. Until then, we suggest traders remain on the sidelines.
Tron has continued its strong run and has reached the critical resistance of $0.02815521. This is a major hurdle as the bulls could not scale it in the past five months. Therefore, the traders who went long at lower levels based on our suggestion, can book 50 percent of profits at the current levels, if they have not done so already. The stops on the remaining position can be trailed higher.
If the virtual currency breaks out and closes (UTC time frame) above $0.02815521, a new uptrend is probable. Following the breakout, the next level to watch on the upside is $0.03801042. Therefore, we are not advising to close the entire position.
If the TRX/USD pair turns down from the current levels, it is likely to remain range bound for a few more days.
The range in Bitcoin SV has shrunk in the past few days. A period of low volatility is usually followed by an increase in volatility.
If the bulls break out of the immediate resistance of $102.58, a rally to $123.98 is possible. Upon scaling this hurdle, the BSV/USD pair can rally to the pattern target of $167.608.
Conversely, if the bears sink the price below $80.352, the cryptocurrency can decline to $65.031 and below that to $38.528. Due to the uncertainty and a lack of clear direction, we are not proposing any trades in it.
Cardano has completed a retest of the neckline in the past two days and is attempting to resume the uptrend. The 20-day EMA is gradually rising, and the 50-day SMA has flattened out. This shows that the selling has subsided and a trend change is likely.
The critical level to watch on the upside is $0.060105. If this resistance is crossed, the ADA/USD pair can reach the pattern target of $0.066.
Our bullish view will be invalidated if the coin breaks down of both moving averages, as well as the $0.036 mark. Therefore, traders who bought on our recommendation can keep an initial stop loss at $0.036, and raise it later if the bulls struggle to scale $0.060105.