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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. 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.
As markets increased, novice traders believed they could never get off, and they just had to have the courage and patience of HODL. However, after the nervous correction of this year, most of those same traders now believe that cryptocurrencies are going to zero. They were wrong during the climb and they were wrong again during the descent. Fundamentals are improving and indicating a better future.
Mike Novogratz, a former hedge fund manager and Goldman Sachs Group Inc. partner, said the markets are sober now, as speculation is over. He remains confident and believes that Bitcoin is not going to zero, it's only in a "methadone clinic".
The most popular twins in the cryptic space, Tyler and Cameron Winklevoss, are also undeterred by the current bear market. They have launched a new mobile crypto trading app with various investment features. Their encrypted exchange, Gemini plans to enter the Asian crypt space in 2019.
But not everyone is optimistic about the future. Professor of Economics and Public Policy at Harvard University Kenneth Rogoff believes that the long-term value of Bitcoin is "more likely to be $ 100 to $ 100,000," as reported by The Guardian.
However, we believe that the current decline is a good buying opportunity, but traders should not expect a vertical rally. The markets are likely to form a great base before starting a new uptrend.
BTC / USD
Bitcoin is currently trading within a downward channel. The bulls tried to defend the $ 3,500 mark in the last three days. A break from this first support will result in a new test of the December 7th low of $ 3,329.05.
If the bulls maintain $ 3,500, the BTC / USD pair may return to the resistance line of the channel, just below the 20-day EMA. We expect this level to act as a rigid resistance.
Although moving averages continue to fall, RSI has formed a positive divergence in recent days. This is a bullish sign. If the price rises above the 20-day EMA, we can expect the pullback to reach the next environmental resistance of $ 5,000.
A failure to overcome the 20-day EMA, and a dip below $ 3,329.05 will test the $ 3,000 threshold. If even this support breaks down, the next support is much lower at $ 2416.52. However, we expect the leading digital currency to hold the $ 3,000 to $ 3,500 zone, so in our previous analysis we recommended a purchase.
XRP / USD
From the time the support broke at $ 0.33108, the bulls tried to keep Ripple above the December 7 low of $ 0.28600.
A break below $ 0.286 and the channel support line may result in a fall of $ 0.24508 on August 14th. If this support breaks, the next support is $ 0.15.
If the bulls maintain support and collide with the 20-day EMA, we expect the XRP / USD pair to meet at the 50-day SMA. A sustained move higher than $ 0.4 will increase the chance of a rally in the upper part of the channel at $ 0.5. Therefore, we suggest traders to keep existing long positions.
ETH / USD
Ethereum has traded in a narrow range of $ 83- $ 102.5 since it sold its previous support of $ 102.2.
The RSI has formed a positive divergence, which increases the possibility of a withdrawal. On the upside, any recovery attempts will have to face resistance at $ 102.5, 20-day EMA and $ 130.5.
If the ETH / USD pair drops below $ 83, the downward trend will resume. His next lower goal is $ 66. Traders can wait for a bullish pattern to develop before entering any position.
XLM / USD
Stellar is trying to withdraw from the lows. It broke out from the downtrend line, which shows a little relief from the incessant sale. The recovery will increase if the price falls by $ 0.13427050. On the upside, 20-day EMA and $ 0.184 will serve as main obstacles.
On the other hand, if the XLM / USD pair falls from the head resistance and breaks $ 0.10488320, the downtrend can extend to $ 0.08. Downward moving averages and RSI in oversold territory indicate that the downward trend remains. We will wait for a new configuration of purchases to be made before proposing any exchanges in the pair.
EOS / USD
EOS broke out from the downtrend line, which suggests that the intensity of the sale has shrunk. But the trend remains down, as both moving averages are still falling and the RSI is in the oversold zone.
If the bulls come out of the immediate resistance of $ 2.1733, the pullback may extend to the 20-day EMA, which will likely act as a stiff resistance. A break above this can bring the EOS / USD pair to $ 3,88723.
If the next dive does not break the minimum of $ 1.55, we can confirm that a fund is in place. However, if the next drop breaks on December 7th, the digital currency may fall to $ 1.2. We suggest traders to wait for the formation of an inversion pattern before entering long positions.
BCH / USD
Bitcoin cash fell below the December 7 low at $ 94 and made a new low from the start of the year on December 11th to $ 92.13. This indicates a lack of purchases even at current levels.
Currently, the bulls are trying to push the price back above $ 94. If successful, the BCH / USD pair will continue to operate in the $ 92.13 – $ 115.61 range. Both moving averages are decreasing and the RSI is deep in the oversold territory. This confirms that the trend is falling, with no signs of reversal.
The first sign of purchase will occur when the bulls break out and close (UTC time frame) above $ 116. In this case, the pullback may extend to 20 days. Although the digital currency has a history of vertical rallies, we suggest traders to wait for purchases to resume before attempting a trade in it.
BSV / USD
While the other cryptocurrencies are showing signs of background, Bitcoin SV is facing sale at higher levels.
Over the last five days, the BSV / USD pair has declined gradually and reached the bottom of the segment. An interruption below the interval may result in a new test of $ 38.528.
On the other hand, if the bulls bounce off the bottom of the range, we can expect the digital currency to reach the top of the range at $ 123.98. Negotiating within a price range can be volatile, so we will have to wait for a breakdown of the range before recommending a trade in it.
LTC / USD
Litecoin has consolidated near the lows in the last five days. Although the price remained above the minimum of $ 23.1, it was not able to go up. This demonstrates a lack of purchases at higher levels. The trend remains in favor of bears as long as the price is lower than the downtrend line.
A return of buyers will be reported when the LTC / USD is held above the 20-day EMA. The RSI has formed a bullish divergence, which is a positive sign.
Aggressive traders can expect the price to close above the 20-day EMA and establish long positions with a short-term objective of $ 40. The stop loss can be placed at $ 23. Traders should maintain the size of the position only about 30 percent of the usual because it is a countertrend move. If the digital currency runs below $ 23.1, it can reach $ 20.
TRX / USD
TRON has formed a symmetrical triangle, which is usually a continuation model. However, in some cases it also acts as an inversion model.
If bears break under the triangle, the downward trend may resume. The goal of the model of this breakdown is $ 0.00554133. It has less support for $ 0.00844479, which can attract some purchases.
Conversely, if the TRX / USD pair breaks and closes (UTC time frame) above the triangle, it has a model target of $ 0.02055867. However, we believe that $ 0.0183 will offer a rigid resistance. If the digital currency does not break or breaks from the triangle in the coming days, the model will be invalidated.
ADA / USD
Cardano is consolidating near the lows. He is currently facing resistance at $ 0.35. Any recovery is likely to endure 20 days of resistance. If the bulls leave this resistance, a rally is likely to be $ 0.456 and then 50-day SMA.
RSI is developing a positive divergence, which is a bullish signal. However, in a downtrend, traders should expect the price to show an increase before they start buying because positive divergences turn into bear traps.
If the ADA / USD pair falls from one of the resistors and slides above $ 0.027237, the downtrend will resume. The next bearish stop could be $ 0.025954. We are not yet able to find reliable purchase configurations, so we are not recommending one.
Market data is provided by the HitBTC exchange. Analysis charts are provided by TradingView.
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