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Market data is provided by the HitBTC exchange.
Making correct predictions is a difficult skill, even more so when it comes to cryptocurrencies. Many analysts have been caught on the wrong foot with their excessively bullish projections for 2018.
One of the most popular analysts, co-founder of Fundstrat Global Advisors, Tom Lee, said that in a note to customers "will cease to provide any period of time to realize the right value".
However, another famous cryptic name, Mike Novogratz of Galaxy Digital, believes that current short rallies could lead to a bigger one later. The investment crypto-bank is focusing its hopes on the upcoming launches of Fidelity's encryption and custody services, as well as that of the Bakkt digital asset trading platform, to attract institutional investors.
On the other hand, US bank JPMorgan Chase said that the involvement of institutional investors in the market is shrinking.
After the massive bear market, one would expect cryptocurrencies to take second place in relation to the legal currency. However, in a recent survey conducted by the central bank of the United Kingdom – conducted on Twitter – about 70% of respondents preferred to receive gifts in cryptocurrencies by cash, bank transfer or gift certificates.
Several encryption projects continue to receive funding, which shows that investors are still interested in this space. But what should traders do after the recent recovery? Let's find out.
BTC / USD
Even after the sharp retreat from the lows, the long-term trend in Bitcoin is falling. Bears are trying to block the recovery for $ 4,255.
The 20-day EMA is changing direction and the RSI has grown into positive territory. This suggests that buyers are back. However, the real test that will confirm a fund is the next move down.
If the bulls hold 20-day EMAs at $ 3,787.33, they will indicate that market participants are willing to buy on declines. After a higher minimum, a higher maximum will confirm that the downward trend is over and that the trend of the BTC / USD pair has changed.
The critical levels to look upward are $ 4,500, $ 4,700 and $ 4,914.11. On the downside, the downward trend will resume if the cryptocurrency breaks below $ 3,236.09.
Investors can maintain their positions. Traders can book partial profits near $ 4,500 and follow the higher stops on the rest.
XRP / USD
The Ripple pullback had to face a near-environmental selling pressure of $ 0.4 in the last two days. We expected a minor correction or consolidation at this level and that's what happened.
If the price falls from current levels, it can find support for the 20-day EMA. Both the moving averages have flattened, which indicates a probable short-term consolidation.
However, if the bulls leave $ 0.4, the XRP / USD pair can reach the resistance line of the downtrend channel. Traders can book partial profits at this level because we expect a major hurdle in the $ 0.5- $ 0.62 zone.
ETH / USD
Ethereum is facing some resistance at $ 122.66. However, we expect it to rise to the $ 130- $ 136.12 zone where traders can book partial profits.
The 20-day EMA is gradually increasing and the RSI has exceeded the 50 level. This gives us confidence that the short-term trend has changed in favor of the bulls. However, the long-term trend is still declining as the 50-day SMA continues to fall.
After a long downtrend, we expect the ETH / USD pair to form a basic model before starting a new uptrend. On the downside, any bending will find buyers at $ 100 and below at $ 83. Our bullish view will be void if the price falls below the December 7 minimum.
BCH / USD
Bitcoin Cash has a history of sharp rallies and was once again validated when it rose more than 225 percent from the $ 73.5 low on December 15th to an intraday high of $ 239 today. Therefore, we have advised traders to keep open partial positions to take advantage of such a peak in our previous analysis.
After the scintillating rally from the lows, the 20-day EMA started spinning and the RSI is also close to overbought levels. Despite this, we expect a number of short-term operators to book profits.
Therefore, traders who are still holding long positions from lower levels can follow their positions with very tight arrests. On the downside, the BCH / USD pair will find support for the 20-day EMA.
XLM / USD
Stellar was a huge underperformer in the current pullback. It has not even come out convincingly from the 20-day EMA.
The bears defended the $ 0.13427050 level in the last two days. If the XLM / USD pair falls below current levels, it can repeat the minimum test at $ 0.09285498.
On the other hand, if the pair supports over $ 0.13427050, it can switch to the next resistance at $ 0.184. However, we have not been able to find reliable purchasing configurations at current levels, so we remain neutral on the currency.
EOS / USD
EOS faced resistance near the Fibonacci retracement of 38.2 percent of $ 3.0510 over the past two days.
A breakout at this level can lead to a shift to $ 3.5147, which is the 50% retracement level of the recent fall. Even 50-day SMA is close to this level, so we expect it to act as a rigid resistance.
Conversely, if the EOS / USD pair is down from current levels, it can find support for the 20-day EMA and below $ 2.1733. The flattening of the 20-day EMA and the RSI in the neutral zone suggest a short-term consolidation.
LTC / USD
We expected Litecoin to reach $ 36,428, but the bears are trying to block the pullback at $ 33.946. After the recent recovery, the 20-day EMA has become flat, but the 50-day SMA continues to fall. The RSI has risen in neutral territory. This suggests consolidation for a few days.
While the resistance of the interval is probably $ 36.428, the 20-day SMA will likely serve as a bearish support.
A break below $ 28 will increase the probability of a fall to $ 23.1. If this level breaks down, the LTC / USD pair will resume the downtrend. Traders who bought at lower levels should raise their stakes higher to protect paper profits.
BSV / USD
Bitcoin SV moved to the top of the trading range and reached our first target of $ 123.98. Even if the momentum is strong, traders can book partial profits closer to this resistance and follow the stops in the remaining position.
If the BSV / USD pair closes (UTC time frame) above $ 123.98, it has a target of $ 167.60, which is very close to the Fibonacci retracement of 61.8% of the $ 254.13 to $ fall 38.528.
Our bullish vision will be invalidated if bears can not sustain more than $ 123.98. In this case, the digital currency may remain limited for a few days.
TRX / USD
We anticipated strong resistance at $ 0.0183, but TRON easily released it. If the bulls maintain this level, the price will gradually go down to $ 0.02815521.
With the current withdrawal, the RSI has gone from oversold levels to the overbought zone. The 20-day EMA has started to appear and the 50-day SMA has flattened out, which shows that the bulls are back in command.
Now, any retracement from current levels will find support for moving averages and below them at $ 0.01339050. Traders who have recorded profits on their positions should wait for the next drop to insert new long positions in the TRX / USD pair.
ADA / USD
Cardano is facing resistance in the area between $ 0.045516 and the 50-day SMA. Therefore, traders who have long gone at lower levels should book more than 50% of the profits in this area.
The 20-day EMA is gradually increasing while the 50-day SMA is still down. CSR is in the positive territory. This suggests that the short-term trend has changed. The next stage could find support for the 20-day EMA and below $ 0.033065. A break above the 50-day SMA can reach $ 0.060105, which will act as significant resistance.
After a long downtrend, we expect the ADA / USD pair to form basic training before starting a new uptrend. Until then, traders should aim to get quick profits instead of waiting for a ride home.
Market data is provided by the HitBTC exchange. Analysis charts are provided by TradingView.
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