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The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the opinions of Cointelegraph.com. Every investment and trading move carries risks, you should conduct your research when you make a decision.
Market data is provided by the HitBTC exchange.
The month of November saw the overall volume of cryptocurrency trading falling on retail sales decrease, while the volume of trade exchanged by the major operators increased. After a prolonged decline, when the retail business falls and the institutional activity resumes, a market fund usually approaches.
However, there is still a lack of participation from traditional investors such as investment banks, pension funds and asset managers. These investors are quite cautious due to regulatory issues and will probably gradually enter the space after the bases for compliance with regulations and custody solutions have been completed.
In the cryptocurrency market, over 50 percent of transactions are made through OTC (over-the-counter) trading and competition to attract institutional investors is overheating. Coinbase, Poloniex and MV Index Solutions are some of the latest in the lucrative OTC space.
The chart data supports our view that a minimum of cryptographic markets is close. However, it is difficult to identify the lower price range. Therefore, investors and traders should start building downward positions for the area from $ 3,000 to $ 3,500.
BTC / USD
Bitcoin is attempting to stage a recovery from the December 7 low of $ 3,329.05. Currently, the pullback is facing resistance at $ 3,387.33. The bulls did not even manage to reach the 20-day EMA after knocking down the $ 5,900 line in mid-November. This shows that sellers are in a hurry to establish short positions on each small retreat.
Both moving averages are sloping and the RSI is approaching oversold levels, confirming a strong downward trend. The only positive side is that a positive divergence is developing on CSR.
After a two-day retreat, the bears may try to resume the downward trend. An analysis of $ 3,329.05 may result in a decline to $ 3,000, which is an important support. Below this level, the next support is $ 2,416.52.
However, we believe the $ 3,000 to $ 3,500 area will offer strong support. If the $ 3,329.05 level is valid, the BTC / USD pair may rise 20 days, close to $ 4,100.
Next fall, if the price is more than $ 3,329.05, it may be a purchase opportunity. We recommend going for a long time with 50 percent of the usual position sizes in the $ 3,000 to $ 3,500 area. We will suggest increasing the position after the pair has moved in our favor.
XRP / USD
Ripple maintained the support line for the downtrend channel on December 7th. However, the subsequent rebound could not resize the immediate immediate resistance of $ 0.33108.
The bears will attempt to sink the XRP / USD pair below the canal. If successful, a new test of $ 0.24508 will be on the cards. Moving averages are declining and RSI continues to trade near the oversold zone. This shows that the sellers have an advantage.
If the bulls defend the zone between $ 0.24508 and the channel's support line, the virtual currency could enter a consolidation. Traders should expect the trend to change before adding existing positions.
ETH / USD
Ethereum continues to be in a strong downward trend. Over the past three days, the bulls have failed to sustain over $ 100, which is close to the previous resistance of $ 102.2. This suggests a lack of purchases from market participants.
If the ETH / USD pair breaks the December 7 low at $ 83, the downtrend will resume. The next bearish stop is much lower than $ 66.
On the other hand – if the bulls defend the support – the virtual currency could consolidate for a few days, before starting a new uptrend. Traders must wait for confirmation of background training before attempting to buy the currency.
XLM / USD
The Stellar pullback could not scale the overload resistance by $ 0.13427050. The failure of the bulls above the first resistance shows that the supply is exceeding the demand.
If the bears manage to break the December 7 low at $ 0.10488320, the fall can extend to the next support at $ 0.08. Moving averages downwards and RSI in the oversold zone show that the path of least resistance is downward.
Contrary to our opinion, if the bulls defend the minimum of 7 December, the XLM / USD pair could consolidate between $ 0.10488320 and $ 0.13427050 for a few days. There are no bullish configurations yet, so we are not proposing any trade in it.
BCH / USD
Bitcoin Cash is not able to find purchase support at higher levels. Although the fall in the last few weeks has been clear, the setbacks have been weak and short-lived.
After trading within the last three days, bears are attempting to break down support at $ 94 and resume the downtrend. There is a strong support for $ 91.78. If the BCH / USD pair expects a recovery from the support zone, a 20-day withdrawal is likely.
We suggest traders to wait for the decline to stop and for a purchase configuration to form before becoming positive. Since there are no bullish configurations, we suggest traders to stay on the sidelines for a few more days.
BSV / USD
Bitcoin SV was an overperformer among the best cryptocurrencies in terms of market capitalization. It has been traded within the range of $ 80.352 – $ 123.98 since November 26th.
Trading within the range is likely to remain volatile, with no clear sense of direction. The next decisive move in the BSV / USD pair will occur in the event of a breakout or a break in the range.
A breakout will confirm that buyers have overwhelmed sellers and a rally for the $ 167,608 goal is possible. On the other hand, a break can result in a new test of the fund. We suggest traders to buy above the interval, or if the general sentiment improves, a trade can be tried closer to the bottom of the range at $ 80.
EOS / USD
After a prolonged downtrend, EOS found some purchases at the $ 1.55 level. He has returned to the downtrend line, which acts as a resistance.
In a strong downward trend, the pullback usually lasts one to three days. If the EOS / USD pair drops compared to current levels, it may repeat the downward test at $ 1.5257 – $ 1.55. If this support breaks down, the downward trend will resume.
On the upside, a break in the downtrend line may result in a rescue rally that may extend to the 20-day EMA, which will act as a stiff resistance. Short-term traders may remain on the long side of the trade if the price remains above the downtrend line. Traders of fluctuations, however, should wait for the trend to change before starting long positions.
LTC / USD
Litecoin had to face a resistance just below the $ 28 level in the last three days. A break of $ 28 may result in a 20-day return to $ 32.
If the LTC / USD pair fails to climb $ 28, a new 7 December low of $ 23.1 is probable. A breakdown of this can extend the downward trend to the next $ 20 support.
Moving averages are sloping and the RSI is in the oversold area. This confirms that the trend is still falling. Although it is forming a positive divergence, traders should wait for the price to follow the upside, before buying it.
TRX / USD
TRON continues to face the 20-day EMA resistance, which is showing signs of flattening. RSI has also been traded close to 40 levels since 29 November. This indicates a probable consolidation in the coming days.
We continue to appreciate the TRX / USD pair because it has not hit a minimum since the start of the year since November 25th. A break above the overload resistance of $ 0.0183 will mark a probable fund.
Conversely, if the virtual currency falls from current levels and falls by $ 0.01089965, it can move to the next support of $ 0.00844479. We are waiting for a bullish pattern to develop before suggesting a trade in it.
ADA / USD
Cardano has had to face resistance to failure levels in the last three days. If the bulls are able to sustain over $ 0.035, a return to the 20-day EMA is likely.
Although the RSI is still in the oversold zone, it shows signs of positive divergence. However, traders should expect the price to end before buying it.
If bears defend air resistance or 20-day EMA, the ADA / USD pair may remain in a range for a few days. On the downside, a break below the December 7 low may result in a decline to $ 0.025954.
Market data is provided by the HitBTC exchange. Analysis charts are provided by TradingView.
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