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Market data are provided by the HitBTC exchange.
2018 was not a profitable year for most asset classes. The strengthening of interest rates by the US Federal Reserve, slowing growth, trade wars and fears of a recession have led to a sharp decline in various markets.
Leading company in the crypt such as Beijing's Bitmain Technology, the world's largest producer of cryptocurrency mining platforms, and Huobi Group, the operator of one of the world's largest cryptocurrency exchanges, are planning layoffs. While this signals difficult times for encrypted companies, such cycles are an integral part of every industry.
However, it is only the crypto asset class that has faced the predictions of an imminent end. Only in 2018, analysts wrote Bitcoin's "obituary" on numerous occasions. We believe that cryptocurrencies will recover in 2019 and capture investors' attention again.
However, the recovery of the criptos will be a slow and gradual process. Unlike before, investors will wait for the chance to become a reality before pushing prices higher. Thus, institutional activity, regulations and broader adoption will be some of the factors that will be carefully observed.
In the short term, Morgan Creek's founder Digital Assets, Anthony Pompliano, expects Bitcoins to break below $ 3000. But what are the graphs projecting? Let's find out.
BTC / USD
Bitcoin rejected the $ 4,255 headstand on December 24 and broke below the 20-day EMA. He is currently trying to stay above the support for $ 3787.33. The price is stuck between $ 4,255 and $ 3,787.33. A break in the support will weaken the pullback and increase the likelihood of a new minimum test.
Conversely, if the price amounts to $ 3,787.33, it will try again to unlock $ 4,255. If successful, recovery may extend to $ 4,914.11 with a 50-day lower SMA resistance.
The 50-day SMA is still in decline and even the RSI has returned to negative territory. This shows that bears are trying to regain their pair on the BTC / USD pair. If one of the two levels of the current interval does not stop, we can expect a few more days of consolidation.
There is an external opportunity for an inverted head and shoulder model if the virtual currency breaks and closes (UTC frame) above the neckline. A similar breakout has a target of almost $ 5,500.
We can confirm a fund if the current drop is reduced to a lower value and the next upside produces a higher maximum. The next few days are essential for the leading cryptocurrency.
XRP / USD
Ripple could not sustain above the $ 0.40 level. The booking of profits pushed prices below $ 0.40 and 50-day SMA.
If the XRP / USD pair rebounds from the 20-day EMA, it will try to unlock $ 0.40 again. If successful, it can climb close to the resistance line of the descending channel. Traders can maintain their long positions with stops at the break-even point.
A break below the 20-day EMA and $ 0.33108 will weaken the withdrawal and reduce the digital currency to the channel's support line. The action on the prices of the next 3-4 days will give us a better idea of what to expect.
ETH / USD
Ethereum closed close to $ 167.32 on December 24th, as we expected. Currently the bulls are trying to hold the 50-day SMA. If successful, we expect another attempt to unlock $ 167.32.
On the other hand, if the ETH / USD pair is unable to hold the 50-day SMA, it can scroll to the 20-day EMA. If the media is valid, we expect the digital currency to enter into a consolidation.
Our neutral or bullish view will be denied if bears sink the price below $ 100. Any interruption below $ 83 will resume the downward trend.
BCH / USD
After its scintillating run, short-term traders recorded profits in Bitcoin Cash near the 50-day SMA. Currently, the bulls are trying to rebound 20-day EMA but are not finding buyers at higher levels.
The 20-day EMA is flat and the RSI is close to 50. This indicates a likely short-term consolidation. This view will prove to be wrong if bears sink the BCH / USD pair under the 20-day EMA. The next downside support is $ 100.
If the bulls bounce from the 20-day EMA and exceed $ 239, the digital currency will resume its recovery and can reach $ 262.43 and $ 307.01. If the price falls from $ 239, consolidation will follow. We will get a better picture within the next 3-4 days. Traders who have left partial positions should continue to follow their stops.
EOS / USD
Recovery in EOS has hit a major 50-day SMA barrier. Currently, the bulls are attempting to contain the 20-day EMA. Below this level the next major support is $ 2.4050.
If one of these supports is valid, we can expect another attempt to exit the 50-day SMA. However, if the bears sink the EOS / USD pair below the supports, it is possible to repeat the minimum test.
The 20-day EMA is flat and the RSI is close to neutral territory. So, we expect a consolidation for a few days. Our view will be invalidated if the digital currency falls below $ 2.
XLM / USD
Since the bulls were unable to sustain the 20-day EMA and $ 0.13427050 breakout, Stellar again fell below the 20-day EMA.
If the XLM / USD pair does not quickly return above $ 0.13427050, it may return to the minimum of December 15th. A breakdown of $ 0.09285498 will resume the downward trend. Digital currency continues to be an underperformer; therefore, we remain neutral. We will have to wait until the price exceeds 20 days and a new purchase configuration to be formulated before suggesting any exchange in it.
LTC / USD
Litecoin could not unlock the lead at $ 36.428 on December 24th, which started a pullback. The bulls are currently trying to maintain support for $ 29,349. If successful, it could result in a reverse head and shoulders model that will complete with a breakout and close above $ 36.428. The goal of the model of this breakout is $ 49.756.
However, if the bulls can not defend $ 29.349, the model will be invalidated and the LTC / USD pair will once again fall to its recent low of $ 23.10. Any violation of the lows will resume the downward trend. We suggest that traders wait for the reverse head and shoulder pattern to complete before starting any new position.
BSV / USD
After failing to break the upper range of $ 123.98 and $ 80.352 on December 20 and 21, Bitcoin SV is likely to fall to the bottom of the range.
If the BSV / USD pair breaks by $ 80.352, it may move to the next support at $ 65.031. Any break at this level will result in a fall of at least $ 38.528.
However, if support is maintained at $ 80,352, we expect consolidation to continue for a few more days. We will observe the price action on the support and suggest every new position.
Contrary to our opinion, if the digital currency goes around the current level and exits the interval, it can go up to $ 167,608. Therefore, we keep our purchase recommendation at the end over $ 123.98.
TRX / USD
The current withdrawal stopped just below $ 0.025 on December 24th. TRON is finding support near the strong support at $ 0.0183, which is a bullish signal.
Moving averages completed a bullish crossover. We anticipate a strong 20-day EMA support. After the recent withdrawal, the TRX / USD pair could consolidate between the 20-day EMA and $ 0.025 for a few days. We will observe the price action at $ 0.0183 and then take a call, as we do not find any purchase configuration at current levels. If the 20-day EMA breaks down, the digital currency will weaken and slip back to the $ 0.0125 level.
ADA / USD
Cardano refused from $ 0.051468 on December 24th. We expected a pullback and, as such, we had recommended to continue with a stop loss close.
Currently, the ADA / USD pair is finding support for the 20-day EMA, which is a bullish signal. However, if the bulls fail to bounce this support quickly, they are likely to collapse. The next downside support is $ 0.033065. We expect one of the above media to be valid.
The 20-day EMA is flat but the 50-day SMA continues to fall. This implies that the long-term trend is still falling, but the short-term trend is for consolidation. We will have a clearer picture within the next two days. A break below the 7 December low will invalidate our bullish hypothesis.
Market data are provided by the HitBTC exchange. The graphs for the analysis are provided by TradingView.
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