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Market data is provided by the HitBTC exchange.
Christmas brought a little cheer to the crypto dealers. The total capitalization of the crypto-market has increased by about 29% from just under $ 101 billion between December 15 and $ 143 billion on Christmas Eve.
Although it is still below its all-time high, growth in recent days is showing signs of fund formation. In a recent tweet, the co-founder of Ethereum, Joseph Lubin, has defined a criptobottom of 2018.
The current rebound can continue to a certain level, after which market participants will wait for the fundamental factors to improve.
One of the most attentive metrics is the level of institutional interest in the sector. Although many big names have expressed their interest, not much has happened on the ground.
Markets put their hopes on new product offerings, clarity of regulations and cryptocurrency fund to attract the biggest players in 2019. Any evidence of an important player entering the markets will act as a strong catalyst for a move towards 39; high in digital currencies.
Should traders hold their positions after the recent recovery or should they book profits? Let's find out.
BTC / USD
Bitcoin is currently facing resistance at $ 4,255. However, the positive thing is that he held on the EMA for 20 days since he broke.
A break of $ 4,255 may result in a transfer to $ 4,500. Even the 50-day fall SMA is just above this level, so we expect the bulls to offer a strong defense of this level.
We recommend short-term traders to record profits on more than 75 percent of their positions closer to $ 4,500, and track the remaining allocation with a near stop loss. If the bulls leave the 50-day SMA, the rally can extend to $ 4,914.11. Nonetheless, we give it a low probability of occurring.
The next move will find strong support at EMA for 20 days and below $ 3,787.33. A violation of this zone will weaken the recovery and increase the likelihood of a new minimum test.
The long-term trend in the BTC / USD pair is still falling, but the short-term trend has changed. If the next dive remains above $ 3,787.33, and the next move on a higher level, we can confirm that the minimum of December 15 was the minimum. The next days will be crucial for the main cryptocurrency.
XRP / USD
Ripple has exceeded the $ 0.4 level, which is a bullish signal. Now it can reach the resistance line of the descending channel, which will probably act as a rigid resistance.
The 20-day EMA has appeared and the 50-day SMA has flattened out. RSI also grew close to overbought levels. This shows that the trend is reversing and that the fund at $ 0.24508 is unlikely to be breached.
On the upside, the XRP / USD may be faced with a checkpoint close to $ 0.5 where traders can record partial profits and raise their stops on the remaining position. A break from this can extend the rally to $ 0.565 and then to $ 0.625. Therefore, we are not suggesting that we close the entire position at $ 0.5. Our bullish view will be invalidated if the price reverses direction and falls below the 20-day EMA.
ETH / USD
Ethereum surpassed $ 136.12 with ease and is close to the main resistance of $ 167.32. Traders who recorded profits at $ 136.12 can close the remaining positions close to $ 167.32. We anticipate a pullback or a consolidation at this level. Conversely, if the digital currency bursts by $ 167.32, it can go up to $ 211.
The 20-day EMA has arrived and the 50-day SMA is flattening. The RSI has gone from oversold to overbought levels. This shows that the short-term trend has changed.
If the next dive finds support in one of the moving averages, it will confirm a fund of $ 83. We expect the ETH / USD pair to spend some time in a range before starting a new uptrend.
BCH / USD
Bitcoin Cash is consolidating near the highs of the last three days. The bears were not able to push the price down, which shows that the bulls do not have urgency to book profits and are buying every little dive.
If the price remains higher than 20 days for the next 2-3 days, we expect another attempt to exit the 50-day SMA. If successful, the pullback may extend to $ 307.01, which is the Fibonacci retracement to 61.8% of the recent decline. Traders should continue to follow their topmost stops.
On the other hand, if the BCH / USD pair is lower than the 50-day SMA, you may find support for the 20-day EMA. Any disruption of moving averages will interrupt the bullish momentum and cause an interval-related action for a few weeks. The downward trend will resume if the bears sink the pair below $ 73.5.
EOS / USD
EOS is trying to get out of the Fibonacci retracement level of 38.2 percent of $ 3.0510. At the top, we anticipate a strong resistance to the SMA of 50 days and to $ 3,88723.
If these two levels are resized, the recovery can extend to the main resistance after $ 4,949. We expect the $ 3.8723- $ 4.493 zone to be an important obstacle.
It is likely that the next leg down will support the 20-day EMA. Any interruption of this support may result in consolidation for a few days. The EOS / USD pair will resume its downtrend if it plummets below $ 1.55.
XLM / USD
Stellar has passed the 20-day EMA and $ 0.13427050. This is a bullish signal that opens the door for a transition to 50-day SMA and $ 0.184.
The 20-day EMA has flattened out and the RSI has risen to the positive zone, which shows that demand has exceeded the short-term supply. However, 50-day SMA is in decline. This implies that the long-term trend is still falling.
The pair remains an underperformer, so we do not recommend any trade in it. Recovery will weaken if XLM / USD slides below $ 0.11196656.
LTC / USD
Litecoin achieved environmental resistance of $ 36.428, as we had anticipated. We expect bears to pose a rigid challenge on this level. If successful, the price can return to the 20-day EMA.
However, if the bulls cross the raised resistance, the LTC / USD pair can extend the recovery to $ 47,246. Therefore, traders can track their stops on the remaining positions.
The 20-day EMA appeared and the RSI jumped into the positive territory. This suggests an advantage for bulls in the short term. We expect $ 23.1 to be the minimum as long as the price will be over $ 29.349.
BSV / USD
Bitcoin SV has a range between $ 80.352 and $ 123.98. The attempt to leave the gap failed on December 20th and 21st. However, the bulls have kept the price above $ 100 in the last three days, which demonstrates the purchase of every little dive.
We anticipate another attempt to leave the field within the next 3-4 days. If the breakout is maintained, the recovery can extend up to $ 167,608. While traders holding partial positions may advance the move higher, fresh positions may also be initiated at a close above $ 123.98 with a stop loss not far behind.
On the other hand, if bears defend $ 123.98 on a closing basis (UTC timeframe), the BSV / USD pair may remain tied to the limits for the next few days. We could suggest long positions again if the price rebounds by $ 80.352. The trend will weaken if bears push the price under $ 65.031.
TRX / USD
TRON does not give up, which indicates a prolonged purchase by the bulls. Moving averages are about to complete a bullish crossover, which denotes a change in trend. If the bulls scale $ 0.025, the next highest move will likely reach the overload resistance of $ 0.02815521.
The TRX / USD pair has lost three times from $ 0.02815521, so we expect a strong defense of this level from the bears. The RSI in the overbought area shows that a pullback is behind the corner.
We anticipate that the cryptocurrency will consolidate in the $ 0.0183 – $ 0.02815521 range for the next few weeks. A pause from this interval will start a new upward trend. We could propose long positions if the next fall is more than $ 0.0183 or 20-day EMA. Our vision of a trend change will be invalidated if the pair breaks mobile averages.
ADA / USD
Cardano is attempting to exit the 50-day SMA and climb to the next environmental resistance at $ 0.060105. Traders who have left approximately 50% of their positions can either book the rest of the profits at this level or closely monitor the stops.
The 20-day EMA appeared while the RSI moved from the oversold zone to the overbought zone. This shows that the bulls have the upper hand in the short term. However, 50-day SMA is still in decline, which means the long-term trend is still declining.
We anticipate another stage, so the recommendation is to book full profits near $ 0.060105. Traders can come back for immersion. Any correction is likely to find support for 20 days and below $ 0.033065. Our bullish view will be void if the ADA / USD pair breaks below the 7 December minimum.
Market data is provided by the HitBTC exchange. Analysis charts are provided by TradingView.