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Market data is provided by the HitBTC exchange.
The sale of cryptocurrencies dragged the total market capitalization to around $ 106 billion on December 7th. The cryptography market has lost more than 87% of its value compared to the maximum reached at the end of 2017.
The latest issue of sales has gained momentum on the news that the US Securities and Exchange Commission (SEC) has delayed its decision on exchange-traded funds with Bitcoin (BTC) until February 27 next year.
Based on the directional movement index and average directional index, the Bloomberg Intelligence analyst Mike McGlone predicts that the Bitcoin will fall to $ 1,500.
The fall has scared most retail investors. Nonetheless, Morgan Creek Digital's cited asset manager believes that its Digital Asset Fund – a basket of ten major cryptographic assets – will offer better returns than SPX over the next 10 years, starting January 1, 2019. Morgan Creek Digital he's ready to bet a $ 1 million bet on their predictions.
The bear market was good for the Stablecoin Tether, which continues to climb the ladder in terms of market capitalization. Now he is sitting in sixth position, threatening to enter the top five if the sale continues.
Since Bitcoin SV, which has recently been bifurcated by Bitcoin Cash (BCH), has some trading days behind it, we will introduce it in our analysis from now on.
BTC / USD
Bitcoin has fallen to a low level since the start of the year, but the decline still shows no signs of slowing down. The previous minimum of $ 3,620.26 offered no support, which shows a lack of purchases at current levels. We expect the $ 3,000 to $ 3,500 zone to act as a stronger support.
However, if the BTC / USD pair falls below $ 3,000, the fall may extend to $ 2,416.52, which is the model's focus after breaking the pennant.
The current situation is opposite to last year when traders expected the price to skyrocket. Now, most believe that digital currencies are condemned. We believe that the sale was excessive and a withdrawal should be behind the corner.
However, we want to see evidence of strong purchases at some support before starting new long positions. Our previously suggested positions were closed at $ 3,800 and $ 3,500.
The lower the cryptocurrency, the closer it gets to the bottom. Therefore, we suggest that traders be prepared to start long positions on the signs of a probable fund. Unlike previous occasions, when we proposed to use only part of the normal size of the position, this time we recommend using the normal position size. The risk premium is becoming attractive at these levels.
XRP / USD
Ripple (XRP) is still above its minimum since the start of the year, but the price is fast approaching these levels. Currently, the price is on the support line of the downtrend channel, which is likely to hold.
A rebound from the current level will face resistance at $ 0.33108, and above that at the 20-day EMA. Conversely, if bears break under support, a new test of $ 0.24508 is likely.
We continue to appreciate the XRP / USD pair because it outperformed a number of major digital currencies. Therefore, we suggest that traders keep their long positions. We suggest adding more when the couple turns around.
ETH / USD
Ethereum fell double-digit on 6 November and has not yet recovered. Currently, he is trying to rebound the support at $ 83. We are expecting some purchases in this area.
If bears keep their selling pressure, the ETH / USD pair may fall to the next support at $ 66. The sale was so intense that the RSI could not even get past the oversold zone, from deeply unsold levels.
The first sign of a likely trend change will be when the price will keep above $ 100. Until then, it is better to wait and watch. We anticipate a strong withdrawal in the coming days.
XLM / USD
After a successful defense of $ 0.184, the bears renewed their sale, pushing Stellar to minimum levels since the beginning of the year.
The next level to look downward is $ 0.08. Although we expect bulls to offer purchase support at this level, it is difficult to identify the fund.
The XLM / USD pair will report a probable fund when it is above the downtrend line. We expect it to consolidate for a few days before starting a new uptrend. Traders should expect a turnaround before buying.
BCH / USD
Bitcoin Cash continues its journey south. Within three days, the price has plummeted from an intraday high of $ 157.58 on December 4 to an intraday low of $ 104.99 on December 7th. Currently the bears are trying to support under the psychological support of $ 100, while the bulls want to keep the price in three figures.
If the bears manage to keep the BCH / USD pair below $ 100, the next bearish support is $ 91.78. The RSI has dropped to about 15 levels, which shows that the sale has been exaggerated and a pullback can start at any time. However, traders should wait for the decline to finish before jumping. Until that moment, it is better to stay on the margins.
BSV / USD
While the other cryptocurrencies are slipping towards new lows, Bitcoin SV is bucking the trend. He is trying to turn around and get up.
The BSV / USD pair is currently in the range of $ 80.352- $ 123.98. An interruption of the range gives him a target of $ 167,608, with a minor resistance at $ 150.47.
If the bears defend the head resistance at $ 123.98, the digital currency could consolidate for a few more days. Short-term traders can look for buying opportunities as long as the price remains above $ 80.352. As the overall sentiment is negative, we suggest that traders keep the position size at around 40 percent of the usual.
EOS / USD
EOS is under a strong bear attack. The fall was so serious that the support level of $ 2 could not hold up even for a day. The next downside support is $ 1.5257. However, with this kind of incessant sale, it is difficult to predict where the decline will end.
When the digital currency makes new lows on a daily basis, the new money sitting at the margins does not want to enter. On the contrary, traders who have long been at the highest levels, abandon their positions because they are not able to take losses. This vicious circle usually ends in capitulation.
After a prolonged decline, the price becomes so attractive that some aggressive bulls start the bottom fishing. We will wait for signs of purchase in the EOS / USD pair before becoming positive. Until then, it is better to wait and watch.
LTC / USD
Bears broke another critical support for $ 28. Litecoin can now slip to $ 20, where we expect purchases to emerge.
The trend is clearly in favor of bears, as bulls are not able to keep the price in a range.
The bulls will try to bring the price back into the range, while the bears will try to keep the momentum down. If the bulls succeed, the LTC / USD pair could consolidate for a few days, before starting a new uptrend. Traders should wait for the creation of a new purchase configuration before starting any new position.
TRX / USD
TRON broke the immediate support of $ 0.01339050. His next support is at the November 25th low of $ 0.01089965. Moving averages are decreasing and RSI is in the negative zone, which shows that sellers have an advantage.
However, we like the way the TRX / USD pair has not broken down to the lows since the beginning of the year. This shows that owners are not eager to sell at current levels, and buyers support it just above recent lows.
If the bulls defend $ 0.01089965, the digital currency could enter a basic formation. We will wait a few days for you to confirm a fund before suggesting a trade in it.
ADA / USD
Cardano's downtrend has recovered, while the couple has made the lows since the beginning of the year. The next downside support is $ 0.025954.
Falling moving averages and RSI in the oversold zone will continue to put pressure on the ADA / USD pair. The first sign of a change in trend will be when the price falls from the 20-day EMA and the narrower range to $ 0.45624. Until then, every pullback will be sold. We suggest that traders wait for the trend to reverse before starting any long position.
Market data is provided by the HitBTC exchange. Analysis charts are provided by TradingView.
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