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Market data is provided by the HitBTC exchange.
A lot of cryptic investors have lost an impressive amount of money this year. The total market capitalization of all cryptocurrencies threatens to break down the $ 100 billion threshold. Unlike traditional resources, there is no established standard to arrive at a fair value for cryptocurrencies. Various experts have proposed different methods for determining the assessment.
One of Bitcoin's most popular supporters and a co-founder of Fundstrat Global Advisors, Thomas Lee, believes that the fair value of Bitcoin is between $ 13,800 and $ 14,800. The price is expected to rebound if the asset class is widely accepted and its adoption by users increases.
After the bear market this year, the existing owners would be expected to abandon the asset class. However, a study by the Cambridge Center for Alternative Finance shows that the number of cryptocurrency users verified by ID has doubled in the first three quarters of this year – from 18 million to 35 million. Is this signal likely to be a recovery in the near future?
Let's take a look at the charts and try to predict if the price will drop or increase compared to current levels.
BTC / USD
A weak rebound on a new test of low or critical support is a bearish indication. This implies that the price has not yet reached a level that is attractive to buyers. Today, Bitcoin easily slipped into the annual low of $ 3,329.05 and made it a new one of $ 3,307.02.
If the BTC / USD pair rebounds the current support and is interrupted by the 20 day EMA, it will be a positive signal. Such a move may result in a withdrawal to $ 5,000.
However, if the rebound from the current level is weak, a break of $ 3,307,02.02 is likely. The next downside support is $ 3,000. Even though $ 3000 – $ 3.500 is a strong support zone, we have not seen any sign of purchase yet. If you break $ 3,000, you may be inviting additional sales, further sinking your digital currency to $ 2,416.52.
The only bullish indication is the positive divergence on CSR, but if the price does not rise, it can turn into a bear trap.
XRP / USD
Ripple has maintained support of $ 0.28600 over the last seven days, but has not been able to get a significant rebound.
Failure to rebound has increased the probability of a break in the support. Both moving averages are decreasing and the RSI is in the oversold zone. This suggests that sellers have the upper hand.
The next level to look downward is $ 0.24508. If this support does not hold up, the downward trend can go up to $ 0.15. The first sign of a likely change in trend will be the 20-day EMA interruption. Above this level, the XRP / USD pair could see some purchases and can reach $ 0.4.
Traders who are long can keep their positions. We will call whether to continue holding or selling in our next analysis.
ETH / USD
Ethereum clung to the bottom of the $ 83- $ 102.5 range. This shows a lack of purchases even at current levels. The chances are that the inability to rise in the last three days attracts the sellers.
A breakdown and close (UTC timeframe) of less than $ 83 will resume the downtrend and may plunge the ETH / USD pair to the next $ 66 support.
The first sign of termination of the incessant sale will be a rally supported over the 20-day EMA. Until then, every pullback will be sold.
XLM / USD
After a two-day retreat, Stellar resumed its bearish trend and made a new annual low. The downward-moving moving averages and the RSI in the oversold zone confirm that the path of least resistance is downward.
The next downside support is $ 0.08. However, in a strong downward trend it is difficult to call a minimum as the price continues to cut support levels easily.
The first sign of a trend reversal will be when the XLM / USD pair will remain above the 20 day EMA. In this case the pullback can extend up to $ 0.184. Traders should stay away from long positions until the price confirms a minimum.
EOS / USD
Although EOS continues to fall, it has been trading near the resistance of $ 2.1733 over the last five days. This shows some purchases in the couple. However, if the bulls do not increase resistance quickly, they will invite to sell.
A breakout of $ 2.1733 can reach the 20-day EMA, which is likely to act as a rigid resistance. The recovery will gain traction if the bulls sustain above the 20 day EMA.
On the downside, an analysis of the December 7 low of $ 1.55 will resume the downward trend that can reach $ 1.2. Traders should expect the EOS / USD pair to report a trend reversal before attempting a trade in it.
BCH / USD
After trading in a narrow range for five days, Bitcoin Cash resumed its bearish trend and made a new low on December 18th.
Both the moving averages are decreasing and the RSI is deep in the oversold territory, confirming a downward trend. There was no significant retreat since the downward trend gained momentum on 19 November. This suggests that bears have complete control. The BCH / USD pair can now correct at $ 72.39.
Traders should wait for the decline to end and a trend reversal be reported before establishing a long position in the pair.
LTC / USD
Litecoin slipped to a minimum of $ 23.1. Even if the bulls are defending the level of support, if they can not push the price above $ 29.349 within the next few days, a new low is likely. The next lower support is $ 20.
The descendant moving averages and the RSI in the oversold zone show that the bears have complete control. A small ray of hope for background training at current levels is positive divergence on CSR. However, for this, the LTC / USD pair will have to bear over 20 days of EMA. Until then, we suggest traders to stay on the sidelines.
BSV / USD
After trading in the range since November 26, Bitcoin SV sold under the $ 80,352 support on December 13th. Unless the bulls quickly reverse and retrench the previous resistance of $ 80.352, the sellers will probably step forward. The next lower target is a new test of the November 23rd low of $ 38.528, with less likely support at $ 57.
The first sign of strength will be when the BSV / USD pair goes up in the range. Although the digital currency is currently trading much above its lows, it has a short trading history. So, we suggest traders to wait for a new purchase configuration before buying it.
TRX / USD
TRON continues to trade within the symmetrical triangle. The bulls are defending the support of the triangle, while the bears are not allowing a break.
The next stage of the move will be decided after a break or a break from the triangle. A breakout can lead to a $ 0.0183 rally, which is likely to act as a rigid resistance.
On the other hand, if the TRX / USD pair breaks, the downtrend will resume. Although the pattern goal of the breakdown is $ 0.00554133, we expect some support at $ 0.00844479. Traders should wait for a breakout and close above the triangle to start any long position.
ADA / USD
Cardano's failure to re-enter the previous range is likely to attract sales. The bears will now attempt to break the support at $ 0.027237 and dive to the next support of $ 0.025954.
On the other hand, if the ADA / USD pair rebounds on December 7, it may remain within a few days. The first sign of purchase will be when the price will be higher than $ 0.035. We can expect the recovery to get traction if the bulls climb 20-day EMA and support it for three days. Until then, the path of least resistance is downward.
Market data is provided by the HitBTC exchange. Analysis charts are provided by TradingView.
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