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Market data are provided by the HitBTC exchange.
While 2017 was a bullish crux market, 2018 turned out to be a huge bearish market that wiped out over $ 720 billion in total market capitalization. We believe that 2019 will focus on the fundamentals and real potential of virtual currencies.
With the arrival of traditional investors, digital currencies sometimes behave similarly to traditional markets. The Wall Street Journal recently pointed out that the correlation between Bitcoin and gold trading has reached up to 0.84 in a short period of time. Similarly, 0.77 correlations to the Volatility Index (VIX) of the Chicago Board of Options Exchange were traded.
As the market matures, it becomes a niche for itself. We believe that cryptocurrencies are currently in a background process and could mark a minimum in the coming weeks.
ETH / USD
After giving up his position as an altcoin superior to Ripple (XRP) a few weeks ago, Ethereum (ETH) is attempting a return. He made great strides last week and emerged as the best actor among the major cryptocurrencies.
BitMEX CEO Arthur Hayes believes the crippling ICO market will be back in action next year and will prove positive for Ethereum. The cryptocurrency is expected to increase to $ 200. Some are hoping the network will get a boost from the imminent update of Constantinople. However, it is always difficult to predict the market reaction to such an important event.
The long-term trend of Ethereum is falling. This year has lost a lot of money for its investors. However, after the fall, can the ETH / USD pair start a new uptrend in 2019?
After each rise and after each fall, the digital currency tends to consolidate in a range. We have highlighted these periods with ellipses on our chart. In 2018, all ranges resolved downwards.
Currently, the bulls are attempting a pullback after hitting a minimum of $ 83. The support line of the previous range will now act as a stiff resistance. For this reason, we expect sales close to $ 167.32. If the bears manage to defend this level, it could result in a limited trading action.
On the other hand, if the bulls climb above $ 167.32, a $ 249.93 rally is likely. Traders can expect a close above $ 167.32 to establish long positions with a near stop loss.
Our neutral-to-bullish view will be invalidated if the price falls and falls below $ 83. We will have to confirm the start of a long-term uptrend if the pair forms a large basic pattern and then exits it. Until then, traders should aim for small targets and record profits periodically.
ETC / USD
Ethereum Classic (ETC) proved to be the second best performer among the best cryptocurrencies. Market participants are confident about the next cohort scheduled for January 14th. 11 startups were selected to access the shared office space, developer support and funding. Can the bull run continue? Let's find out.
The long-term trend of the ETC / USD pair is falling. Currently, the bulls are trying to get out of the downtrend line that has limited all attempts to recover since May of this year.
A stop line stoppage will be the first indication that the downside momentum is going down. May result in a rally to the next environmental resistance of $ 9.5. We anticipate a strong defense of this level by the bears.
If, however, the bulls fail to burst, the cryptocurrency may again revert to the recent low of $ 3.3. Any interruption of this support can resume the downward trend.
After the long downtrend, we expect virtual currency to enter a period of consolidation before entering a new upward trend. Therefore, long-term investors can wait for the formation of an inversion before building positions. However, short-term traders may remain on the long side after the price bursts and closes above the downtrend line.
Cryptocurrency featured * – STRAT / USD
Stratis is currently in 40th place in terms of market capitalization. Recently, he released the first complete intelligent Turing contracts for the execution of the .NET on-chain code and his first sidechain, Cirrus, for the Stratis mainchain. These will provide blockchain companies and developers with the perfect platform to create custom blockchains tailored to specific applications.
In recent months we have witnessed a series of announcements by the Stratis group. He has collaborated with MediConnect, the company that deals with blockchain solutions for the pharmaceutical industry.
It also became a Microsoft Independent Software Vendor (ISV) certified a couple of months ago, a major breakthrough. With a positive fundamental news flow, is it a good time to buy cryptocurrency? Let's see.
The STRAT / USD pair was severely hit by the current bear market. Its prices have dropped from a high of $ 24.39960825 at the start of January this year to a low of $ 0.53353976 in mid-December, with a loss of 97.81%.
However, the positive thing is that he participated in the recent withdrawal.
From its low of $ 0.53353976 on December 14th, on December 24th it recovered up to $ 1.84363616, a 245 percent rally in 10 days. Currently, the bulls are trying to block the pullback at the 20-day EMA.
If successful, the cryptocurrency will try again to move towards the environmental resistance of $ 1.91493444. If this level is exceeded, the recovery can extend to $ 2.14656768. We expect a new upward trend to start if the bulls support the price above this level.
Traders can expect the price to rebound from the 20-day EMA and rise above $ 1.46 to establish long positions with the stop loss placed just under $ 1.15. Partial profits can be booked near $ 1.84 and stops on the rest can be towed higher.
However, if the bears sink Stratis below the moving averages, it will lose its momentum and may correct to $ 0.81338679, below which a new minimum test is likely.
NEO / USD
NEO has announced its second edition of DevCon on February 19th. The founder of NEO, Da Hongfei, is not discouraged by the current bear market. He believes that the price of cryptocurrency only tells a part of the story, since it is mainly driven by sentiment. Hongfei continues to focus on the project and the ecosystem and has defined the current phase as "ContiNEO – We continue," Forbes reported.
The NEO / USD pair is on a strong downtrend. From a high of $ 200.59839784 reached in mid-January this year, it dropped to a low of $ 5.4808 in mid-December. Currently, the bulls are trying to withdraw from the conditions of oversold.
Any recovery will face a stiff resistance at $ 13.60337627. Previously, this level had had strong support for about three months, so now it will act as a strong resistance.
If the bulls can not scale environmental resistance, we expect a consolidation period of a few days. The downward trend will resume if the bears again plunge the cryptocurrency below $ 5.4808. Traders should wait for a turnaround before starting new long positions in it.
IOTA / USD
The IOTA tried to go up in the top 10 of the cryptocurrencies by market capitalization, but it was not successful. Last week, he was the fourth best performer. How is your chart now appearing?
The IOTA / USD pair is trying to form a basic scheme. He is currently facing sale to the previous resistance to support $ 0.4037. If bears continue to defend this level, we expect a consolidation between $ 0.2051 and $ 0.4037 for a few weeks.
Contrary to our expectations, if the bulls burst by $ 0.4037, they will indicate that the markets have rejected the lower levels. In this case, a move to $ 0.8152 is likely.
Aggressive investors may try to enter long positions by closing above $ 0.4037, while long-term investors may await the start of a new uptrend before buying it.
BNB / USD
In a letter entitled "End-of-year review of Binance in 2018", Binance CEO Changpeng Zhao painted a positive picture of the cryptography industry. He also outlined the various plans for the Binance exchange and its cryptocurrency. What does the chart design? Let's find out.
The BNB / USD pair was a relative outperformance. He successfully supported the $ 4.5200621 support for four weeks, after which the bulls started a withdrawal attempt.
In the last two weeks, the bulls have kept the price above $ 5.4666, which is a positive sign. This shows that the markets rejected the lower levels. The digital currency is likely to rise to the resistance line of the downtrend channel, closer to $ 8.25. Short-term traders may try to get on this move higher.
However, long-term investors should expect the price to break out of the channel before attempting to trade in it. Our bullish view will be invalidated if the bears plunge the digital currency below $ 4.1723848.
Market data are provided by the HitBTC exchange. The graphs for the analysis are provided by TradingView.
* Disclaimer: Stratis is a cryptocurrency in the foreground of one of Cointelegraph's sponsors and its inclusion did not affect this price analysis.