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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.
In December of last year, market participants rejoiced as Bitcoin's cryptocurrencies were climbing dramatically. The leading digital currency reached a maximum of nearly $ 20,000 on December 17 and investors were hoping for even higher levels.
A year later, after a massive bear market, the question in every investor's mind is that Bitcoins can rise from the dead again and stage a turnaround? While we believe Bitcoin is closer than ever, we do not expect a strong recovery from current levels. There is a huge overhang in positions that will liquidate when the virtual currency attempts a recovery. So, it will be a slow and laborious higher move.
Key factors such as effective utility, clear regulation and wider adoption of technology will attract institutional investors who will lead the next stage. All this will take time and will not happen overnight. BitPay CEO Stephen Pair believes that it will take 3-5 years for blockchain-based currencies to be used in daily transactions. Therefore, investors should have a long-term horizon and do not expect overnight wealth.
Note: There is an opportunity for a short-term trade on some cryptocurrencies. However, these are all countertrend transactions because the trend on most of them is falling. Therefore, traders should keep the size of the position small, around 30 percent of the usual and negotiate with a trailing stop to reduce risk. They should take partial profits from the resistance and follow the stops on the remaining positions to protect the profits of the card. Long-term investors, however, can retain their positions.
BTC / USD
Bitcoin is trying to withdraw from the $ 3,500- $ 3,000 support zone. In this part of the downward movement that began on November 14, the pullbacks did not last more than three days. Therefore, we remain cautious.
The downtrend line and the 20-day EMA are both on the same level. Therefore, we anticipate that it will act as the main block. If the bulls push prices above the 20-day EMA, the recovery can extend up to $ 4,500 and above the $ 5,000 level. The main trend remains down. Therefore, we are not yet confirming a fund. After the initial withdrawal, the next down stage will confirm if the fund is in place or if the BTC / USD pair is farther to go down.
Our bullish display will be invalidated if the price falls from the downtrend line and falls below the December 15 low of $ 3,236.09. Traders who are long can hold on to their positions. Depending on performance at higher levels, we will propose to add or reduce positions.
XRP / USD
Ripple has again maintained the support line of the downward channel. It bounced sharply and is likely to reach the 20-day EMA.
Beyond the 20-day EMA and $ 0.33108, the recovery can extend to the subsequent overhead resistance of $ 0.40. We expect bears to strongly defend this level. However, if the bulls are down to $ 0.40, a move to the top of the channel is likely to be $ 0.50.
Our bullish view will be invalidated if the price falls by the environmental resistance. In this case, a decline is likely to be $ 0.24508. Traders can maintain their long positions on the XRP / USD pair.
ETH / USD
The current withdrawal of Ethereum can reach almost $ 102.50, which could represent tough resistance.
If the bulls survive above the 20 day EMA, you can switch to $ 136.12. However, if the ETH / USD pair falls from $ 102.50, it can return to $ 83. The 20-day EMA shows signs of flattening, which indicates a consolidation. The RSI has also formed a positive divergence, which increases the likelihood of a recovery. Traders can wait for the digital currency to exceed $ 103 to operate on the long side.
XLM / USD
Stellar is trying to recover after setting a new annual minimum of $ 0.09285498 on December 15th. The withdrawal can reach 20 days EMA, which is likely to offer a rigid resistance. If the bulls climb $ 0.13427050, the recovery can extend to $ 0.184, although we give it a very low chance of occurring.
There are no bullish charts on the chart, except for the oversold condition of the RSI. Therefore, we did not suggest any exchange on the XLM / USD pair. If the price fails to support recovery, it may remain limited for a few days. It will resume its downward trend below the minimum of December 15th.
EOS / USD
EOS is trying to retreat after a sharp fall. Although the main trend is declining, a short-term recovery is likely. The bulls might encounter resistance to the 20-day EMA.
By bursting out the 20-day EMA, the EOS / USD pair can return to $ 3.0510 and $ 3.5147 – 38.2% and 50% of the downside retracement levels from $ 5.4793 at $ 1.55.
If bears push 20-day EMA prices down, virtual currency may remain limited for a few days. Aggressive traders can try long positions over 20 days, keeping a small stop.
LTC / USD
Litecoin is currently in sharp decline. It has risen above the 20-day EMA for the first time since November 8th. This shows the purchase at the lower levels.
We anticipate a strong resistance close to $ 29.349. If the bulls climb and sustain above it, a 50-day SMA rally is likely. The 20-day EMA is flattening, which shows a likely change in the short-term trend. The positive divergence on CSR is also a bullish signal.
Traders can expect the price to exceed $ 29.349 before attempting long positions. If the bears defend the resistance, the LTC / USD pair can retest the minimum to $ 23.090.
BCH / USD
Bitcoin Cash was a huge underperformer. It flows abruptly on a bearish sentiment and recovers marginally during a pullback.
We expected the BCH / USD pair to fall to $ 72.39 and reverse the direction after reaching a low of $ 73.50 on December 15th. Virtual currency has been extremely oversold in recent days and a pullback is likely. However, a long exchange on virtual currency should be attempted only by professional operators.
The first level to look upward is $ 115, above which you can switch to the 20-day EMA. However, if the price falls from $ 95, a new minimum test is likely.
BSV / USD
The breakdown of the Bitcoin SV range has found buyers at the lower levels. This is a bullish sign. If the price falls within the range, it will indicate that the market has rejected the lowest levels.
Above $ 80,352, the BSV / USD pair can rise to the top of the range at $ 123.98. Traders can wait for the price close (UTC time frame) above $ 80.352 to go long with stops kept just below the December 15th low.
Our bullish view will be invalidated if the price falls from $ 80.352 or EMA to 20 days and falls to $ 65.031. In this case, a new test of $ 38.528 is probable.
TRX / USD
TRON is one of the overperformers, as it successfully passed the November 25th low. The price could not come out of the symmetrical triangle by force, invalidating the model.
Currently, the bulls are trying to scale the 20-day EMA, while the bears are trying to defend the level. If the bulls are successful, a passage to the overhead resistance of $ 0.0183 is likely. Traders can wait for a close (UTC time frame) above the 20 day EMA and start long positions, keeping the recent lows as a stop. We are asking to wait for the closure because on November 29th the price has risen above the moving average, but failed to close it above.
Contrary to our opinion, if the TRX / USD pair drops from the 20-day EMA, it may again fall to the trendline and below it at $ 0.01176658.
ADA / USD
Cardano is showing the first signs of a pullback from recent lows. The bulls will have to overcome a stiff resistance in the area from $ 0.033 to $ 0.035 for the recovery to gain momentum.
If the ADA / USD pair drops from the 20-day EMA, it will remain within range and bears may try to resume the downtrend again. However, if the bulls sustain above $ 0.035, we expect a shift to the top of the range at $ 0.0455.
Although moving averages are still declining, the RSI shows a positive divergence, which is a bullish indication. Short-term traders can expect the price to exceed 20 days to operate on the long side.
Market data is provided by the HitBTC exchange. Analysis charts are provided by TradingView.
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