The newsflow regarding cryptocurrencies has been fundamentally positive this year. Could this affect prices? Let’s find out.
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Market data is provided by the HitBTC exchange.
Discussions on blockchain and cryptocurrencies have entered the United Nation’s General Assembly. In his recent address, Malta’s Prime Minister Joseph Muscat has said that cryptocurrencies and blockchain can solve several problems and will become the money of the future.
This year, Malta has positioned itself as the “blockchain island,” introducing favorable regulations for the new asset class. While other nations view the crypto industry as a problem, Malta has chosen to look at the advantages it can offer and has adopted it wholeheartedly.
In the U.S., several blockchain companies have formed a coalition and hired Klein/Johnson Group, a bipartisan lobby shop. An interesting point to note is that the firm has agreed to accept part of its payment in digital coins.
Though China has banned crypto trading, Beijing Sci-Tech Report (BSTR), China’s oldest tech publication, has said it will accept Bitcoin for its 2019 subscriptions.
The fundamental news flow in 2018 has been positive. Could it begin to influence the prices of cryptocurrencies? Should investors start buying now? Let’s find out.
Bitcoin has been consolidating in a small range for the past two days. Both moving averages are flat and the RSI is close to the neutral territory. This suggests an equilibrium between the buyers and the sellers.
However, this small range is unlikely to sustain for long. As the cryptocurrency has made a sequence of lower highs in 2018, the failure of the bulls to break out of the overhead resistance will attract selling.
If the bears break down and sustain below the trendline, the BTC/USD pair can decline to $6,341 and below that to the critical support zone of $5,900–$6,075.
On the upside, the $6,831.99 line is the critical resistance. If the bulls scale above this, a rally to $7,413.46 will ensue. We anticipate a large range move within the next couple of days. For now, traders can hold their long positions with the stop losses (SLs) at $5,900.
Ethereum has been trading close to the 20-day EMA for the past seven days. Both moving averages have turned flat and the RSI has also been hovering around the midpoint. This shows a consolidation in the range of $200–$250.
A break out of the overhead resistance of $250 and the 50-day SMA will tilt the balance in favor of the bulls. Above $250, the ETH/USD pair might rally to $300–$322.57.
The key support to watch on the downside is the zone of $192–$200. If the bears sink the pair below this support, a retest of the lows is likely. We should get a decisive move in either direction this week.
Ripple continues to consolidate in the range of $0.425–$0.625. The bulls attempted to break out of this range on September 30, but failed. Nevertheless, as the price has sustained above $0.583, it triggered our buy proposal.
Currently, the price has turned down from the overhead resistance. The 20-day EMA is likely to act as a strong support. If the bears break down of this support, the XRP/USD pair can decline to $0.4255.
The digital currency will pick up momentum above $0.625. As both moving averages are trending up and the RSI is close to the overbought zone, we suggest traders hold their long positions with the SL at $0.42.
Though Bitcoin Cash has held the 50-day SMA for the past two days, the bulls have failed to secure a bounce. This shows that buying has dried up and if the supports of the moving averages break, the digital currency can retest the recent lows.
The BCH/USD pair will indicate a change in trend if it breaks out of $600. The key levels to watch on the upside are $660.0753 and $880.
As the price has been sustaining above the descending channel and the moving averages for the past four days, we suggest traders hold their long position with the stops at $400.
EOS has been struggling to sustain above $5.65 for the past three days. Failure to bounce from the moving averages indicates absence of buying at higher levels.
The EOS/USD pair has again corrected to the 20-day EMA. The zone between both moving averages is an important support. If this breaks, the next level to watch on the downside is $5. Below $5, a retest of $4.49 is probable. Therefore, we suggest traders hold their long positions with stops at $4.9.
If the pair doesn’t move up within the next couple of days, we shall close the position.
Stellar has been holding above $0.24987525 for the past five days but is still struggling to break out of the downtrend line of the descending triangle.
If the XLM/USD pair turns down from the current levels, it might break down of both moving averages and slide to the next support at $0.21489857.
The bearish pattern will be invalidated only if the bulls sustain above the downtrend line of the descending triangle. The levels to watch on the upside are $0.30434761 and $0.36065937.
As both moving averages are rising and the RSI is in the positive zone, the long positions can be held with the stops at $0.21.
The break out of the range is still elusive as Litecoin remains stuck between $49.466 and $69.279. The longer the consolidation, the stronger will be the eventual break out or break down from it.
Currently, the LTC/USD pair has corrected to the moving averages. A small trendline is also located at this level. Hence, we anticipate a strong support at $58.7.
If the bears break below the trendline, the virtual currency can drop to $54.5 and then finally to the bottom of the range at $49.466.
The downtrend will resume on a break down of the range and a double bottom will complete on a break out of $69.279. We shall wait for the prices to sustain above the overhead resistance before suggesting any long positions.
Cardano has formed three successive intraday candlestick patterns. This shows that the range has shrunk and an expansion is due within the next couple of days. The 20-day EMA is flat and the 50-day SMA is flattening out. The RSI is in the neutral zone. This shows a balance between the buyers and the sellers.
If the bears break below the 20-day EMA, a fall to $0.71355 is probable. If this level also breaks, a retest of $0.060105 is possible.
On the upside, a break out of the 50-day SMA will indicate strength. The ADA/USD pair will pick up momentum above $0.94256.
We don’t find any reliable buy setups, hence, are not proposing any trades in the pair.
Monero declined to the 50-day SMA on September 29, where buying emerged. However, the bulls could not push above $120, which shows nervousness to buy at higher levels. Both moving averages are flat and the RSI is close to 50 levels, which shows a state of equilibrium between the bulls and the bears.
The failure to break out of the downtrend line will attract profit booking and new shorts if the bears sustain below the 50-day SMA. The next level to watch on the downside is $96.390. Therefore, we recommend to keep the stops at $100 on the long positions.
The XMR/USD pair will show signs of strength if it sustains above the downtrend line. It will pick up momentum if it breaks out of the symmetrical triangle.
Dash has been trading between the 20-day EMA and the 50-day SMA for the past two days. A break down of the 50-day SMA will complete a break of the symmetrical triangle that can result in a drop to $159.416 and below that to $130.024.
If the support holds and the DASH/USD pair breaks out of the 20-day EMA, it might attempt to break out of the triangle.
We shall wait for a confirmed break out of the triangle before recommending any trades in it.
Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.