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Market data is provided by the HitBTC exchange.
The sharp decline in Bitcoin's volatility at a time when volatility in US equity markets has soared, indicating that cryptocurrencies have diverged from equity markets. It emerged as an independent class of activity, supported by the fundamentals.
A recent report by the Morgan Stanley bank also emphasizes the emergence of Bitcoin and altcoins as "a new class of institutional investment". However, any new resource faces numerous obstacles at the start. Cryptocurrencies are currently going through the denial phase, before they reach acceptance.
As soon as this indecision resolves, we will probably see a number of buyers, who are currently sitting on the sidelines, jumping in. The CEO of Galaxy Digital Michael Novogratz believes that 2019 will be an important year, predicting that Bitcoin will break $ 10,000 in Q1 and continue its journey north to reach $ 20,000 or more by the end of the year.
While the bigger players are focused on Bitcoin, there is a tussle between the first two altcoins for the second spot. Ripple recently passed Ethereum for a short period of time as a market capitalization leader, before Ethereum regained its position.
The cryptocurrency market seems to slowly come back to life. Let's see what coins could gather from current levels.
BTC / USD
Bitcoin is trying to support above moving averages. With a close above $ 6,654.51, it can reach $ 6,831.99. The price has decreased three times by this resistance, so this is a key level to look at upwards. A break of this can push the cryptocurrency to $ 7,400. Moving averages are flat, which shows a balance between bulls and bears.
A failure to exit $ 6,831.99 will extend the stay in the range. On the downside, $ 6,200 acted as a strong support. If this level breaks down, a new critical support zone test at $ 5.900- $ 6.075.04 is likely.
The BTC / USD pair will turn negative with a subdivision of $ 5,900. The lower supports are $ 5.450 and $ 5,000. Therefore, traders holding long positions may keep their stops at $ 5,900.
ETH / USD
Ethereum has risen above moving averages. Now it should try to gradually switch to $ 249.93.
The first signs of a trend reversal will be when the ETH / USD pair remains above the range. Such a move could bring it to $ 300 and over $ 322. Therefore, traders can wait for a close (UTC timeframe) above $ 249.93 and buy with an appropriate stop loss.
If bears defend the resistance to overload, the digital currency will continue to trade in the range for the next few days. The downward trend will resume on a breakdown of less than $ 188.35 and $ 167.32.
XRP / USD
Ripple triggered our proposed purchase on October 31st when it was closed (UTC timeframe) above $ 0.48 on November 5th. Although the bears tried to sink the pair on November 6th, they found support for moving averages and recovered again.
Today the XRP / USD is again facing resistance at $ 0.55. If the bulls can defend the moving averages and push the price above this environmental resistance, a rally is likely to be $ 0.62. Partial profits can be booked at this level and the rest of the position can be maintained with a near stop loss, because over $ 0.62, a $ 0.7644 rally is likely.
Moving upward and / or higher RSI and near the overbought territory show that the short-term trend is bullish. If the virtual currency flows below the moving averages, it will invalidate our bullish vision. Therefore, traders can maintain an initial stop loss of $ 0.425.
BCH / USD
Over the past seven days, Bitcoin Cash has increased by around 55%, a bullish signal. He is currently beating head endurance of $ 660.0753, from where he rebounded at the start of September.
It is difficult to predict the reaction of the BCH / USD pair after the fork. Therefore, traders can reserve partial profits at current levels and keep the rest with an adequate stop loss.
If the bulls push the price above $ 660.0753, the digital currency can reach $ 850. Therefore, we are not suggesting to close the whole position. The 20-day EMA has appeared, which is a positive sign.
Since the RSI has reached the overbought territory, the virtual currency can consolidate for a couple of days. Our bullish view will be invalidated if bears sink the price below $ 400.
EOS / USD
EOS has risen near the top of the narrow range. The bulls have not been able to get out of this interval since September 24th, so we expect a strong defense of this level.
A breakout can push the EOS / USD pair to $ 6.8299, beyond which it is likely to increase momentum and rally to $ 9.1668, and in addition to $ 11.4. Therefore, traders who are long can keep their protective stops at $ 4.9, just below the narrow range support.
If the bulls can not get out of the interval, the pair can slip to the bottom of the range at $ 5, below which a fall of $ 4.493 is possible.
XLM / USD
Stellar has emerged from the downtrend line of the descending triangle with force, which is a bullish sign. With the last move, he invalidated the bearish model. Although it did not trigger our purchase suggested in the previous analysis, it remained above the downtrend line for two days.
Therefore, we support the start of long positions on a breakout above $ 0.275. The goal is a rally for $ 0.36. If the bears defend the resistance at the head of $ 0.304, traders can follow the higher stops or close the positions.
Our bullish view will be invalidated if the XLM / USD falls from current levels and decreases in moving averages. Initial stops can be kept at $ 0.2, which can be increased rapidly, depending on price action.
LTC / USD
As expected in our previous analysis, the bears are defending the area between the 50-day SMA and the downtrend line. Therefore, we have recommended to reserve partial profits when Litecoin approaches the downtrend line.
We have not proposed full profits because the interruption of the downtrend line may result in a $ 69,279 rally. Therefore, traders who have booked partial profits can track the remaining positions at $ 50.
We anticipate the 20-day EMA to offer strong support for any drop from current levels. Both moving averages are flat, which indicates a continuation of consolidation. The LTC / USD pair will resume its downtrend if it falls below $ 47.246.
ADA / USD
Cardano broke under the symmetrical triangle on October 29, but the bears could not break the support at $ 0.068989. This led to a withdrawal that has now brought the virtual currency to the resistance line of the symmetrical triangle.
The bulls are currently facing resistance at $ 0.082207, above which a rally is likely to be $ 0.094256. On the other hand, if the ADA / USD pair struggles to get out of immediate resistance, it will slip back and remain locked in the $ 0.068989- $ 0.082207 range.
We could not find reliable purchase configurations at current levels; therefore, we remain neutral on the couple. We will suggest a long position if we see buyers return.
XMR / USD
Although Monero held over $ 112.44 in the last three days, he failed to gain momentum. This shows a lack of demand at higher levels.
Previously, from September 25 to October 10, the bulls could not accumulate momentum, causing a fall towards the bottom of the narrow range.
If bears sink XMR / USD below the moving averages, they will re-enter the narrow range between $ 100.453 and $ 112.44. We could not find a reliable purchase setup at current levels, so we are not suggesting any negotiations.
TRX / USD
TRON continues to operate within the range with a slight positive bias. The price has risen above both moving averages, but struggles to find buyers at higher levels.
As long as the TRX / USD pair remains in a range, we expect random moves that are difficult to trade. It will make a decisive move on either a breakout or break from the range.
A rise above the intraday highs of October 15 is likely to push the price towards $ 0.04158193. However, on two occasions, the bulls came out of environmental resistance, but failed to sustain the prices above it. Therefore, traders should wait for the digital currency to close (UTC time frame) above $ 0.03 before starting long positions. The trend will become negative if bears sink the price below $ 0.0183.
Market data is provided by the HitBTC exchange. Analysis charts are provided by TradingView.