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Market data is provided by the HitBTC exchange.
The regulations are a double-edged sword. If used correctly, they can instill confidence among institutional investors, but if implemented incorrectly, they can drive out investors. The use of traditional methods to regulate a new asset class can lead to disaster.
The Japan Financial Services Agency (FSA) has shown the way, allowing the Japan Virtual Currency Exchange Association to formulate and enforce the necessary rules to protect consumer assets and prevent money laundering. If this self-regulation experiment is successful, it could also be adopted by other nations, instilling trust to investors.
Will central banks issue their cryptocurrencies? According to a recent study, many financial institutions believe that there should be digital currencies issued by central banks (CBDC). However, Deputy Governor of the Bank of Japan (BOJ) Masayoshi Amamiya recently rejected the claim that CBDCs will improve current monetary systems.
Cryptography markets have recently stopped responding to any basic news event, but this tight limited trading activity is unlikely to last forever. Soon, the markets will make a decisive move by force. Traders should be ready to jump on the winner's chariot if the breakout takes place on the upside.
BTC / USD
The failure of a bearish model should attract strong purchases. Although Bitcoin (BTC) broke out from the descending triangle model on October 15, it failed to sustain the highest levels. The lack of follow-up purchases and the failure of bulls to sustain prices above $ 6,831.99 are a bearish signal. If the bears' rupture of immediate support at $ 6,500, a fall to support after $ 6,200 is likely.
The BTC / USD pair held the critical support zone of $ 5,900- $ 6,075.04 on numerous occasions in 2018. A breakdown of this support can trigger protective arrests on long positions, quickly dragging prices to levels below $ 5,450 and $ 5,000. Therefore traders holding long positions may maintain a stop loss of $ 5,900.
The digital currency will show the signs of an inversion if it claims over $ 6,831.99. After overcoming this resistance to overload, a quick rally to $ 7,400 is likely, followed by a transfer to $ 8,400.
We expect the price to be breakout or to break the $ 6,831.99- $ 5,900 range in the coming days, resulting in a new uptrend or a downtrend.
ETH / USD
Ethereum (ETH) was trading below both the moving averages, which are sloping downwards. RSI is also in negative territory, which shows that bears have the upper hand.
If the bulls can not scale their moving averages in the next few days, it is likely to fall to $ 188.35. A break at this level may result in a new test of $ 167.32, below which the ETH / USD pair will resume its downward trend.
The digital currency will show signs of an inversion if it supports above the head endurance of $ 249.93. Such a move can result in a rally at $ 322.
XRP / USD
Although the intraday range in Ripple (XRP) has shrunk since October 17, it has been trading flat, without giving up much ground. A strong and broad shift from the current levels can bring the digital currency to $ 0.50, above which we expect it to increase buying interest.
Traders can expect a new purchase configuration to form above $ 0.50 to start long positions. The key levels to watch on the upside are $ 0.55, $ 0.625 and $ 0.76440.
If the XRP / USD falls from current levels, it may slip to $ 0.37185 and below $ 0.26913.
BCH / USD
The bulls were not able to bounce off the symmetrical triangle support line, which is a bearish sign. Both moving averages are sloping downward and the RSI is in negative territory, indicating that the path of least resistance for Bitcoin Cash (BCH) is bearish.
A break in the triangle will resume the downward trend and may push the BCH / USD pair to $ 300 and lower. Traders can therefore maintain a stop loss of $ 400 on their existing long positions. The digital currency will become positive if it breaks and sustains itself above the triangle.
EOS / USD
Both buyers and sellers seem to have lost interest in EOS because they started producing small intraday series from 16 October.
An expansion of the range from the current levels can bring the EOS / USD pair to the environmental resistance of $ 6.8299, which will act as strong resistance. The digital currency is likely to gain momentum on a close above $ 6.8299.
Conversely, if prices fall from current levels, a new test of $ 4,403 is likely, followed by a decline to $ 3.8723. Traders can protect their long positions with the stop loss at $ 4.90.
XLM / USD
After failing to break the downtrend line of the descending triangle, Stellar (XLM) returned to the 50-day SMA, which could act as a strong support. If the price rebounds from this support, it will try once again to exit the triangle, which will be a positive sign.
Traders can expect a close (UTC time frame) above $ 0.27 to establish long positions. Such a move can bring prices to $ 0.36.
On the other hand, if the bulls fail to defend the 50-day SMA, the XLM / USD pair can plunge into the support zone of $ 0.184 – $ 0.20. If this support zone gives way, the digital currency will resume its bearish trend, plunging to its lowest level since the beginning of the year.
LTC / USD
Litecoin (LTC) has formed a bearish downward triangle pattern that will end on a breakdown and a closing (UTC time frame) of less than $ 49.466. Both moving averages are downhill and the RSI is in negative territory, which shows that bears have the upper hand. Although the goal of the model after a triangle break is $ 29, we expect strong support at $ 40.
The bearish pattern will be denied if the LTC / USD pair breaks out of $ 60. The failure of a bearish model is a bullish signal. Therefore, at the end (UTC time frame) above $ 60, we expect the bulls to climb $ 69,279 and join the overhead resistance following $ 94. Traders can expect a confirmed break before becoming bullish.
ADA / USD
Cardano (ADA) has formed a symmetrical triangle pattern within the wide range $ 0.094256- $ 0.060105. Both moving averages have offered strong resistance in recent days.
A triangle break and support at $ 0.069 may result in a reduction of critical support to $ 0.060105.
On the upside, a strong break in the triangle increases the chance of a rally to $ 0.12. Even if bulls could meet resistance to $ 0.094256 and $ 0.11, we expect them to be crossed. However, a weak breakout of the triangle could vanish to the environmental resistance of $ 0.094256.
Therefore traders should wait for the ADA / USD pair to unblock strongly before establishing long positions.
XMR / USD
Monero (XMR) failed to overcome the 50-day SMA and endurance at $ 112.44 on October 23, inviting to sell. Currently, prices have fallen below 20 days and can gradually fall to $ 104.12 and $ 100.
A breakout of more than $ 112.44 could attract buyers, pushing the XMR / USD pair at the top of the range to $ 128.65.
After such a long period of reduced interval days, we expect the range to expand as soon as possible. Therefore, traders should be ready to buy if they find that prices rise strongly.
There have been many occasions in the last days when prices have increased momentarily, only to give up all their earnings later in the day. Therefore, it is better to wait until prices close well (UTC time frame) before starting any long position.
TRX / USD
TRON (TRX) is gradually drifting after touching the top of the range on October 15th. Currently, the price is blocked between both moving averages. A breakdown of the 50-day SMA may result in a reduction in support subsequent to $ 0.02815521- $ 0.0183. Below this support zone, the fall can extend to $ 0.00844479.
If prices remain above 20-day EMA, an increase to the top of the range is likely. Both moving averages are flat and the RSI is close to the midpoint, so the TRX / USD pair could remain tied within a few days. We will become bullish on the digital currency if it breaks and closes (UTC time frame) above $ 0.30.
Market data is provided by the HitBTC exchange. Analysis charts are provided by TradingView.