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The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the opinions of Cointelegraph.com. Every investment and trading move carries risks, you should conduct your research when you make a decision.
Market data are provided by the HitBTC exchange.
The first ever bitcoin was extracted 10 years ago on January 3, 2009. Since then, the original cryptocurrency has been on a wild ride. Critics continue to believe that Bitcoin is a scam and that it can neither become a currency nor act as a store of value.
However, faithful believers continue to claim that one day Bitcoin will be used for daily transactions and will also be preferred as a digital counterpart of gold. The large retail company Overstock.com has announced that it will pay its commercial fees with Bitcoin.
Although 2018 witnessed a sharp decline in prices, it did not deter large players from betting on digital currencies. Circle processed 10,000 OTC exchanges in 2018 and generated a trade volume of $ 24 billion. This shows that institutional money is gradually, if slowly, entering into space.
The GTI indicator Vera Convergence Divergence aims at higher levels for Bitcoin if the buying pressure continues. Nigel Green, founder and CEO of the British consulting firm deVere group, expects the virtual currencies to be positive in 2019, against the backdrop of a larger inflow of institutional funds.
However, what do short-term charts foresee? Let's find out.
BTC / USD
The Bitcoin range fell to $ 3,660.84- $ 3,955.6 from December 29th. The 20-day EMA has become flat and the RSI has fallen below 50 levels, which shows that the bulls have given up their momentum in the short term.
The BTC / USD pair will gain momentum on a $ 4,255 break, which will complete a head and shoulders model. The goal of such a move is $ 5,500, which can extend up to $ 5,900. Therefore, traders can buy a close above $ 4,255 with stops at $ 3,550.
If bears plunge the virtual currency below $ 3,550, a decline to $ 3,236.09 will be on the cards. The downward trend will resume if this support gives way. We anticipate that Bitcoin will make a decisive move in the coming days.
ETH / USD
The $ 167.32 level acted as a strong resistance over the past two days. If the bulls manage to push Ethereum above this level, they can rise to $ 225, followed by a rally to $ 249.93.
Conversely, if the ETH / USD pair falls from current levels, it can run up to $ 136.12. We anticipate strong support at this level as the 20-day EMA is also nearby.
The pair remains on track to climb $ 167.32 as long as it stays above the 20-day EMA. Any disruption of moving averages will be a negative development that may result in a new test of $ 83. We recommend that traders wait for a breakout of more than $ 167.32 or a dip in support levels before starting any long position.
XRP / USD
Ripple has been trading in a narrow range of $ 0.32615 – $ 0.383 since December 27th. A breakdown below this range will result in a decline to $ 0.27795.
On the other hand, a breakout of more than $ 0.4 will complete a reverse model of head and shoulders, with the next target of $ 0.52205. Although the resistance line of the downward channel can act as a minor obstacle, we expect it to be traversed. Therefore, we maintain the purchase recommendation provided in the previous analysis.
If the XRP / USD pair exits the $ 0.565 to $ 0.625 zone, it will move up to $ 0.7644, which could be a tough resistance.
BCH / USD
Bitcoin Cash failed to exceed the 50-day SMA, which is a negative sign. If the price slips below $ 141, it can go down to the bottom of the downward channel. A break in the channel will resume the downward trend.
The BCH / USD pair will gain momentum on a break out and close (UTC time frame) over the 50 day SMA. Such a move will turn the model into a bullish flag that has a target of $ 355.
The 20-day flat SMA and the RSI near level 50 suggests short-term consolidation. Therefore, traders should expect a 50-day break from the SMA before entering.
EOS / USD
The break above the 50-day SMA was short-lived. EOS has returned to the 20-day EMA once again. If this support breaks down, the slide can extend to $ 2.1733.
Any interruption of $ 2,133 would be a negative development. It may result in a decline to $ 1.55. Below this level, the EOS / USD pair will resume its downward trend.
On the upside, $ 3.2081 is a major drag, above which a move to $ 3.8723 is likely, followed by a rally to $ 4.493.
XLM / USD
The bulls are struggling to get out of the 20-day EMA, which is a negative sign. If Stellar dives below $ 0.11024826, it is likely to fall to a minimum of $ 0.09285498.
The 20-day EMA is gradually coming down and even the RSI has slipped below 50 levels. This shows that bears have the upper hand in the short term. The XLM / USD pair will gain strength if it breaks $ 0.15. We will have to wait for a trend inversion to appear before proposing an exchange in the pair.
LTC / USD
Although Litecoin came out of the 50-day SMA on 2 January, it failed to gain ground. Bears are currently trying to sink below moving averages.
The $ 27,701 – $ 29,349 area is a critical downside support zone. Any interruption of this is likely to push the price to $ 23.1. The downward trend will resume if even this level is interrupted.
The LTC / USD pair will gain momentum if $ 36,428 will break out. We suggest that traders wait for a close (UTC time frame) above this level to establish long positions. Until then, it is better to stay on the sidelines because the flattening moving averages and the RSI close to 50 levels indicate a short-term consolidation.
BSV / USD
Although the wider range of Bitcoin SV is $ 80.352 – $ 123.98, it has been locked in a narrow range of $ 80.352 – $ 102.58 since December 26th.
Usually, when the interval becomes small, it is an indication of an unexpected breakout or break. It is difficult to predict in which direction the chart will move when it does. Therefore, it is better to wait for the breakout before buying.
If the BSV / USD pair exceeds $ 102.58, it can go up to $ 123.98. If this level is also exceeded, it can therefore reach $ 167,608. Therefore, traders can buy a close above $ 102.58 with stops at $ 80.
On the other hand, if the digital currency slips below $ 80, it may fall further to $ 65.031 and below $ 38.528.
TRX / USD
The bulls could not sustain the January 3 breakout, but the TRON did not abandon the ground, which suggests buying at lower levels. The 20-day EMA continues to rise, which is a bullish signal.
The break above the downtrend line may bring the TRX / USD pair to the next level of $ 0.0246. If this level is resized, it can go up to $ 0.02815521. Traders who have started long positions based on our previous suggestion can continue to hold them down for $ 0.018.
Our bullish display will be invalidated if the price breaks below $ 0.018 because after such cryptocurrency it could go down to 50 days SMA and below $ 0.013.
ADA / USD
Cardano has been trading near the neckline in the last two days. Moving averages completed a bullish crossover. If the bulls manage to climb the neckline within a couple of days, the graph will complete a reverse head and shoulder pattern, with a target of $ 0.066.
Traders can buy on a clasp above the neckline, but if the price does not burst quickly by $ 0.060105, the stops should be increased.
If the ADA / USD pair does not burst early from the neckline, it will probably be lowered and fall below moving averages. A break of $ 0.036815 will result in a new minimum test.
Market data are provided by the HitBTC exchange. The graphs for the analysis are provided by TradingView.
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