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Market data is provided by the HitBTC exchange.
After the first signs of recovery, the opinion is divided on the current market withdrawal. Some say it's just a rebound from a dead cat, while others believe it is the beginning of a basic construction process that will result in a new uptrend. Michael Bucella of the investment company focused on cryptography BlockTower Capital has told CNBC that the smartest money has started investing.
However, Paul Donovan, UBS's Global Chief Economist, said that digital currencies can never be currencies and are "fatally flawed". After the recent fall, many are questioning the longevity of cryptocurrencies. Past events and intense dives show that the nascent asset class oscillates between periods of extreme optimism and pessimism.
For the unbelievers, this is not the space to be inside. However, for investors who believe in the long-term history of cryptocurrencies, Ric Edelman, founder and executive president of Edelman Financial Services, believes it is a good time to start buying Bitcoin.
Can we or anyone choose the exact fund? No! A fund can only be identified with hindsight. Therefore, traders can scale position, gradually building a portfolio. Let's see what virtual currencies are displaying purchase settings.
BTC / USD
Contrary to our opinion, the withdrawal in Bitcoin did not even reach the Fibonacci retracement level of 38.2 percent of $ 4,712.89. It has dropped from $ 4,471.1 on November 29th. This shows that bears are not willing to wait for the highest levels to be sold.
This is less of a support to the small uptrend line, below which a new minimum test can be made at $ 3,620.26. It is likely that a breakdown of the lows from the beginning of the year will further attract sales, dragging the BTC / USD pair to $ 3000. This is an important level that should hold: a break of this can lead to a dip at $ 2,410.
However, we expect the $ 3,500- $ 3000 zone to be valid. Thus, traders who have long followed our recommendation can maintain their positions. We will close the position if we find out that bears are under less than $ 3,500.
If the price rebounds from current levels, it can go up to $ 4,712.89 and $ 5,050.4. We can add more positions while the virtual currency rises to the north.
XRP / USD
Ripple triggered our suggested purchase level on November 28, but could not exceed $ 0.4. Currently, the price has declined and could retest the intraday minima of 25 November.
The 20-day down-trend EMA and the RSI below 40 levels will continue to attract sellers. An interruption below the downtrend channel's support line may result in a reduction to $ 0.24508. However, if support holds, we anticipate a return to the top of the interval. Traders who have purchased positions on our recommendation may contain a stop loss of $ 0.3. The positions can be closed if the XRP / USD pair is kept below $ 0.3.
ETH / USD
The rebound in Ethereum dropped to $ 127.87. It continues to fall, but in the last seven days it has been trading in the $ 130.5 – $ 102.2 range.
A breakout of the range may have a slight resistance to the 20-day EMA, but we expect it to be exceeded. The ETH / USD pair will face a stiff resistance at $ 167.32 and, if this level is exceeded, it will be in the 50-day SMA. We suggest that traders wait for a trend inversion to be reported before attempting long positions in it.
BCH / USD
Bitcoin Cash extended his stay in the restricted range of $ 204.76 – $ 148.27. The longer the price remains in the interval, the stronger the breakout or breakdown will be.
Both moving averages are falling and the RSI is in the oversold area, which shows that bears are in charge. We anticipated an upward breakout as the sale was clear and the BCH / USD pair seemed oversold. But the lack of buying and selling by the bears is threatening a break in the range.
If the price is kept below $ 148.27, the slide can extend to the next $ 100 support. On the other hand, if the bulls keep the bottom of the range and the breakout of $ 204, 76, we expect a rally to $ 242.9 and $ 272.14. Aggressive traders can get on this move but, since it is a countertrend, keep the size of the position reduced.
XLM / USD
When a support breaks, it becomes the new resistance. The stronger the support, the stronger the resistance will be. Stellar turned close to the head resistance of $ 0.184.
The bears will try to break down the recent lows of $ 0.13427050 and immerse the XLM / USD pair to $ 0.08 levels. In contrast, the bulls will try to defend the area between $ 0.13427050 and $ 0.1547188. We will become positive on the virtual currency if the price is higher than $ 0.184.
EOS / USD
EOS is in a strong downward trend. After a day of withdrawal, the fall has resumed and the price has reached a new low since the beginning of the year. The next downside support is $ 2.4.
The failure of the EOS / USD pair to break the downtrend line indicates that bears are in charge. Traders should wait for the digital currency to come back and show signs of stabilization before going long.
LTC / USD
Litecoin remains in a downward trend, with both declining moving averages and RSI falling into negative territory. The pullback stopped just above $ 36 levels, which shows a lack of purchases at higher levels.
The bears will try to make a new low from the beginning of the year, while the bulls will try to defend the current lows. If the bears are successful, the LTC / USD pair can correct $ 20 levels.
However, if the bulls use the current fall to buy and form a higher minimum, they will indicate strength. The digital currency will show the first signs of a change in trend if it is kept above the downtrend line. Until then, it remains vulnerable to a bear attack.
ADA / USD
The sellers did not even wait for the recovery to reach the EMA 20 days before downloading their positions. Cardano can retest the recent lows of $ 0.033065 in the coming days. If bears break support and make a new low from the start of the year, the decline may extend to $ 0.025954 levels.
On the other hand, if the bulls manage to maintain support, the ADA / USD pair may start a background process. A trend change will be indicated when the price makes a series of higher highs and higher lows. Until then, bears are likely to jump on any withdrawal.
XMR / USD
The retreat in Monero was short-lived. The failure of bulls in achieving the first environmental resistance of $ 71 indicates the lack of interest in buying. The trend remains steady with both downward moving averages and RSI near oversold levels.
A break below $ 53 will resume the downtrend and may plunge the XMR / USD pair to the next $ 40 support. If the bulls defend the psychological support of $ 50, they will indicate purchase at lower levels and increase the probability of a background formation. Traders should wait for the creation of a new purchase configuration before starting any new position.
TRX / USD
The strong retreat at TRON ended just above the 20-day EMA. Currently, bears are trying to push prices towards recent lows.
The trend remains low and the bears have successfully defended the first level of resistance, which shows that the sellers are in charge. If the TRX / USD pair falls below $ 0.01089965, the next downside target is $ 0.00844479.
On the other hand, if the bulls manage to contain prices above November 25, the digital currency could enter into consolidation. There are still no signs of a trend reversal.
Market data is provided by the HitBTC exchange. Analysis charts are provided by TradingView.