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Market data are provided by the HitBTC exchange.
The year 2017 covered far-reaching days and superlative returns in cryptocurrencies. 2018 speaks of an overwhelming bear market and a sharp decline in volatility. Bitcoin's volatility is at its lowest since the beginning of the year and most of the altcoins have followed the example. While flat markets are despised by speculative traders, it is a good time to make a long-term investment.
A short period of low volatility trading will be followed by the expansion of the range and greater volatility. However, we believe that the rise from current levels will have to face a number of obstacles during the ascent. A large number of retail investors locked at higher prices will be saved when the price of Bitcoin will start a new uptrend. Mike Novogratz, CEO of the encrypted investment company Galaxy Digital Capital Management, does not see Bitcoin climbing more than $ 9,000 in 2018.
So, does Bitcoin bottom or can it fall further?
The managing partner of Fundstrat and the head of research Tom Lee have posed this question to the institutions and users of Twitter. The results of the survey were interesting. A majority of 25 institutions on Wall Street believed that the price of Bitcoin was "already hit", while the majority of 9,500 survey respondents on Twitter believe it is likely to fall further.
57 percent of institutions have a minimum target of $ 15,000 on Bitcoin by the end of 2019, which is about 127 percent higher than the current price of the major digital currency.
BTC / USD
Bears did not take advantage of the break below the trend line and Bitcoin rebounded over the 20-day EMA. The important level to look upward is the downward line of the descending triangle and $ 6.832. If the bulls cross these two levels, they will invalidate the bearish pattern, which is a bullish sign.
The first level to keep an eye on is the top intraday of September 4 at $ 7,413.46. If this level is exceeded, the BTC / USD pair could rise back to the next level of $ 8,500. Bears could launch a strong defense of this level.
On the downside, a break below the $ 6.341- $ 6.435 support zone can sink the digital currency into the critical zone of $ 6,075.04- $ 5,900. A break at this level will cause a series of stop losses that can cause a sharp fall. Therefore, traders holding long positions should maintain a loss of $ 5,900.
ETH / USD
Ethereum is at the center of the $ 200 to $ 250 range. In recent days, the intraday range has shrunk, suggesting a lack of interest in buying and selling.
The first bullish sign will be a breakout and close (UTC timeframe) above $ 250. Such a move will attract buyers and may bring the ETH / USD pair to the next level of $ 322.57.
On the downside, a break in the $ 200 level could submerge virtual currency at the September 12th low of $ 167.32, below which the downward trend will resume.
We do not find any reliable purchase configuration at the current level; therefore, we are not recommending a trade on it.
XRP / USD
Over the past two days, Ripple traded between $ 0.50 and $ 0.55. A $ 0.55 breakout could bring it to the head end of $ 0.625. A breakout from this level will resume the uptrend.
A break below $ 0.50 will test the 20-day EMA support. Any interruption of this support will repeat the bottom of the range again at $ 0.425. A break from this level is likely to be reduced to $ 0.37512.
As the price is still above the moving averages – which are tending to rise – we suggest keeping long positions on the XRP / USD pair with a stop loss of $ 0.42.
BCH / USD
Bitcoin Cash has held more than 20 days over the last two days, but the bulls have not been able to push prices higher.
A $ 600 breakout may indicate the start of a new uptrend, while a $ 400 breakdown may resume the downtrend.
As the BCH / USD pair is above the 20-day EMA, we suggest traders to keep the long position at $ 400.
EOS / USD
EOS has formed a symmetrical triangle at the bottom. It is largely stuck between $ 5.30 and $ 6 from September 26th. Attempts to break down from the 50-day SMA have seen purchase at lower levels, which is a positive sign.
A symmetrical triangle breakout has a target of $ 8. However, we believe the EOS / USD pair will face a stiff resistance at $ 6.80. Traders can maintain their long positions with the stop loss at $ 4.90. A close below the triangle's trendline could bring prices back to $ 4.49.
XLM / USD
Stellar has held the 20-day EMA in the last two days but has not been able to close (UTC time frame) above $ 0.24987525.
A 20-day breakdown of EMA may result in a 50-day SMA decrease and a critical support of $ 0.21489857.
The XLM / USD pair will become bullish if you stop and close (UTC time frame) above the downward line of the descending triangle. Since the bulls have managed to defend the 20-day EMA, we suggest traders to keep long positions with a stop of $ 0.21.
LTC / USD
Litecoin is currently trading near the center of the band $ 49.466 – $ 69.279. Moving averages have been flat over the past nine days and the RSI is close to the midpoint.
The LTC / USD pair will become positive on a breakout and close above $ 70, and will become negative on a breakdown and close below $ 49.
Trading within a range can be volatile and can hit stops on both sides. Short term traders can buy a small amount on a rebound from the bottom of the range, while positional traders should expect a breakout of more than $ 70 for purchase.
ADA / USD
Cardano broke below the 20-day EMA on October 2, but the bears were not able to push prices to support below $ 0.071355. Flat moving averages and RSI near level 50 show the balance between bulls and bears.
If the ADA / USD pair bursts by $ 0.94256, it will indicate that the bulls have the advantage, while a decline below $ 0.071355 will suggest that the bears have the upper hand.
Between these two levels, the digital currency could consolidate for a few days. We will wait for a purchase configuration to be formulated before proposing any trade on it.
XMR / USD
Monero has been trading near the $ 115 level since September 29th. This shows a balance between buyers and sellers.
Both moving averages are flat and the RSI is close to level 50, which suggests that a lackluster trading action could continue for a few more days.
The XMR / USD pair could rise to $ 140 if it exceeds $ 121. On the downside, a break below $ 107.80 could result in a decline to $ 103 and $ 96. Traders can maintain their long positions with one stop loss of $ 100.
IOTA / USD
The IOTA extended its stay in the $ 0.6170 – $ 0.5000 range. Both moving averages are flat and the RSI is close to the midpoint, suggesting the continuation of the action related to the interval.
The IOTA / USD pair may attract buyers if it breaks and stays above the range. The first goal of this breakout is $ 0.8152. If bears break under the interval, the digital currency can retest the minimum to $ 0.4037.
Traders should wait for the closing of the price (UTC time frame) above $ 6.50 before starting any long position.
Market data are provided by the HitBTC exchange. The graphs for the analysis are provided by TradingView.