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Market data is provided by the HitBTC exchange.
After months of stability, the cryptocurrencies undergo a renewed attack by the bears, given that the total market capitalization has again fallen back below $ 188 billion. The current sell-off comes after months of mandatory exchanges on the markets. This is a negative sign because it shows that, after a period of relative balance, the sellers have gained the upper hand.
None of the cryptocurrencies were spared in the carnage as most of the top ten tokens by market capitalization fell between 9% and 18%. This shows that the sale was extensive. Although the exact reason for the fall is unknown, the BKCM CEO Brian Kelly believes it may have been triggered by the uncertainty surrounding the Bitcoin Cash fork.
How should traders approach this new development? And it's time to do a little bit. bottom fishing or is it better to sit and wait until the decline resolves? Let's see.
BTC / USD
Bitcoin has crumbled today because the break below the trend line has attracted sharp sales, causing prices to plummet to lows since the beginning of the year. When prices fell below $ 5.900, it triggered our suggested stop loss at $ 5,900. Currently bulls are trying to push prices above $ 5,900, but every little retreat is met by a new wave of sales.
If bears support prices below $ 5,900, the next drop should bring the BTC / USD pair to $ 5,450 and below to $ 5,000. Conversely, if the bulls stage a successful pullback, the digital currency may try to rise once again above the trend line.
Sometimes, the first move by a consolidation is a fake. So, the next two days are very critical for the digital currency as it will determine the next direction. If bears exploit the collapse and lower prices, then it is best to sit down until the end of the decline. However, if bears fail to capitalize on the fall, they show strong demand at lower levels. Therefore, we suggest traders to wait for the next two days, as it will give us a better indication of the next direction.
ETH / USD
Although Ethereum broke below immediate support at $ 188.35, it did not slip through the September 12 intraday lows to $ 167.32. At the moment, the bulls are returning to the scene, after pushing prices above $ 188.35, which shows the demand at lower levels.
If the ETH / USD pair remains above $ 188.35, it is a bullish signal because it rejects lower levels. On the other hand, if the current pullback attempt is achieved with another round of sales, traders can expect the fall to extend to subsequent lower supports of $ 136 and $ 110. Although we do not like it having made a new low today, it is still too early to go out and buy. Therefore, we suggest traders to wait and watch from the sidelines.
XRP / USD
The rebound from the breakout levels is blurred and Ripple has refused. It broke below the moving averages and the support zone, plunging to $ 0.40. In doing so, it triggered our suggested stop loss at $ 0.45.
Currently, the XRP / USD has recovered some of its losses and is trying to climb above moving averages. It will take strength if the bulls break through the small bearish line.
On the flip side, the critical support to watch is $ 0.37198. If this level breaks down, the next support is much lower at $ 0.24508.
BCH / USD
Bitcoin Cash had one of the worst falls among the best cryptocurrencies. The sale has increased as it broke below the Fibonacci retracement level of 61.8 percent of $ 500.3425 and the 50-day SMA. Our recommended stop loss was activated at $ 480. Panic dragged the BCH / USD pair to an intraday low of $ 423, where some purchases have emerged.
Considering the uncertainty of the fork lasts on November 15th, we advise traders to stay away from starting new positions now. Traders can wait for the dust to stabilize before taking any trading position.
EOS / USD
EOS collapsed below the narrow range and fell to critical support at $ 4.4930. This triggered our proposed stop loss at $ 4.90.
Currently the bulls are trying to provide support for $ 4.4930. If the level holds, a withdrawal towards $ 5 is likely. However, if the support breaks down, a new critical support test is likely to be $ 3.8723.
The 20-day EMA started to decline and the RSI reached the near-overseas territory, which shows that bears have the upper hand. We suggest traders to wait for the EOS / USD pair to stabilize before starting long positions again.
XLM / USD
Stellar is currently trading inside a rising channel, after falling from the top of the channel to the bottom. We expect strong support around the value of $ 0.22 – $ 0.225 from the channel support line and the downtrend line of the descending triangle.
If the XLM / USD pair breaks below the channel and falls within the descending triangle, it will be a negative sign. Therefore, traders who are long on our recommendation can keep their stops at $ 0.22.
If the channel support holds up, the bulls will try again to move gradually upwards to $ 0.30. Moving averages flattened and RSI marginally plunged into negative territory, which indicates short-term consolidation.
LTC / USD
Litecoin has fallen to a new low since the beginning of the year. Today, the price was split between the critical support area at $ 49.466- $ 47,246 and dropped to a minimum of $ 42,758. As the price had fallen below $ 50 on November 13, our recommended stop loss was activated.
If bears support prices below $ 47.246, the LTC / USD pair has a lower objective goal of $ 40 and $ 32.
On the other hand, if the bulls try to rebound and rise above $ 49.466, they will indicate purchases at lower levels, which is good. Currently, however, the digital currency remains negative, so we are not suggesting any negotiations.
ADA / USD
Cardano could not scale the 50-day SMA in the last five days, attracting sellers. It easily broke below support from the narrow range to $ 0.068989 and approached critical support at $ 0.060105 where some purchases have emerged.
If the support at $ 0.060105 breaks, the ADA / USD pair may slip to $ 0.043722. Currently, the bulls are trying to push prices above the $ 0.068989 level. If successful, the virtual currency will remain in a range, fluctuating between $ 0.060105- $ 0.082207.
XMR / USD
The sale to Monero intensified as it broke under immediate support at $ 100.453. It plummeted to an intraday low of $ 85.039 in which some purchases have emerged.
Currently, the XMR / USD is attempting to rise above $ 100.453. If successful, the action related to the interval is likely to continue.
However, if the rebound is accompanied by strong sales at higher levels, it is likely that a new test of the $ 81 level within the next two days. The 20-day EMA is declining and the RSI has plunged into negative territory, which suggests an advantage for short-term bears. We recommend that traders wait for prices to stabilize and show a high trajectory before starting any long position.
TRX / USD
TRON broke below the bottom of the range and approached critical support for $ 0.0183. This level was held twice before, so we anticipate the bulls to defend it once again.
However, if the $ 0.0183 level breaks on a closing basis (UTC time frame), the TRX / USD pair may fall to the next lower level at $ 0.00844479.
If the support is valid, the digital currency will extend its stay in the range between $ 0.0183 and $ 0.02815521.
Market data is provided by the HitBTC exchange. Analysis charts are provided by TradingView.