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Market data is provided by the HitBTC exchange.
The crypto markets have been consolidating in a small range for the past few weeks. Investors who are currently sitting on the sidelines avoid entering a range bound market, and the volumes have dropped. We expect buying to start after the prices break out of their ranges and a new uptrend begins.
The next major event that can move the markets is the outcome of the pending Bitcoin Exchange-Traded Fund (ETF) proposals submitted to the U.S. Securities and Exchange Commission (SEC). Whatever the decision, the cryptocurrencies are likely to respond wildly.
The launch of Intercontinental Exchange’s (ICE) Bakkt platform on Dec. 12 might not cause the same excitement as the launch of Bitcoin futures last year by the CBOE and CME. Still, it is a welcome step. It can attract institutional investors because it will provide physically-delivered contracts.
Vertex Ventures, a subsidiary of Singapore-based government-owned investment company Temasek Holdings has invested in one of the largest cryptocurrency exchanges Binance. This is a positive development because funds like Vertex Ventures tend to invest for the long-term and their gradual entry into the market will encourage more institutional investors to jump in.
The range on Bitcoin has shrunk in the past three days. If the range expands on the upside, a rally to $6,831.99 is likely. A sustained move above the overhead resistance will invalidate the descending triangle and break the sequence of lower highs. Above $6,831.99, a rally to $7,400 is probable.
Our bullish view in the short-term will be invalidated if the bears sink the price below $6,500. The BTC/USD pair will turn negative if it breaks below the critical support zone of $5,900–$6,075.04. Therefore, traders can keep their stop loss at $5,900 for the long positions.
We anticipate volatility to increase within the next few days. If the price breaks out to the upside, we shall trail the stop loss higher.
Ethereum has been trading between the 20-day EMA and $188.35 for the past few days. A break down of the immediate support can push the price to the Sept. 12 intraday low of $167.32.
If the bulls succeed in breaking out of the moving averages, a rally to the top of the range is possible. We shall turn positive on the ETH/USD pair if it sustains above $250.
A break out of the range can carry the price to $322, which might act as a stiff resistance. Traders should wait for a confirmed breakout above $250 before initiating any long positions.
Ripple’s volatility has died down. Both moving averages and the RSI are flattening out, which shows a balance between the buyers and the sellers.
The resistances on the upside are $0.5, $0.55 and $0.625, whereas the two support levels are at $0.388 and $0.37.
We suggest traders wait until the XRP/USD pair attracts more buying interest. We might propose long positions when we find a reliable buy setup above $0.5.
Though Bitcoin Cash is trading inside a symmetrical triangle, the price has been hugging the support line for the past few days, which is a negative sign.
The moving averages are gradually sloping down and the RSI is in the negative territory. This shows that the bears have an upper hand.
A breakdown of the triangle will resume the downtrend and can plunge the BCH/USD pair to the next support at $300. Therefore, the traders can keep a stop loss of $400, just below the Sept. 11 intraday lows. The pair will turn bullish if the price breaks out of the triangle and sustains above it.
The intraday range in EOS has shrunk in the past few days. The moving averages and the price are all bundled close to each other, with the RSI close to the neutral territory. This shows a lack of either buying or selling interest from the market participants.
This extremely low volatility is unlikely to continue for long. Soon, the price will either jump up or plunge from the current levels.
If the prices move up, a breakout and close (UTC time frame) above $6.8299 can be purchased. However, if the EOS/USD pair declines from the current levels, a fall to $4.493 and $3.8723 is probable. Traders can keep the stop loss on their existing positions at $4.9.
Stellar is trading close to the downtrend line of the descending triangle, which is a positive sign. Though it has failed to break out of the overhead resistance, we like the way it has sustained above the moving averages.
If the bulls succeed in breaking out of the triangle, the traders can establish long positions on a close (UTC time frame) above $0.27. The target objective is a rally to $0.36, with a minor resistance at $0.3.
If the XLM/USD pair plummets from the current levels and breaks below the moving averages, a drop to the support zone of $0.184–$0.2 is probable.
Litecoin has been trading close to the bottom of the $49.466–$69.279 range. On the previous two occasions, the bounce off the lows could not reach the top of the range, which shows that the sellers are in a hurry to liquidate on any small rally.
The LTC/USD pair has formed a bearish descending triangle pattern that will complete on a breakdown and close below $49.466. A breakdown will be negative and can sink prices to the next support at $40.
The first sign of bullishness will be a break out of $60, which will invalidate the bearish pattern. We shall wait for the price to sustain above $70 before turning positive
Cardano has been trading close to the midpoint of the $0.060105–$0.094256 range for the past few days. The bulls are, however, finding it difficult to break out of both moving averages.
If the bears sink the ADA/USD pair below $0.069, a retest of the critical support at $0.060105 is probable.
On the upside, if the price scales $0.083, the cryptocurrency can rally to the top of the range. We shall wait for the price to either break out of the range, or fall to the bottom of the range before suggesting any trades.
Monero has reached the 50-day SMA, which might act as a resistance. If the bulls break out of $112.5, the probability of a rise to $128.65 increases.
If the XMR/USD pair turns down from the 50-day SMA, it can slide to $100. The moving averages are flat and the RSI is close to the neutral territory. This shows equilibrium between the buyers and sellers.
If the bulls break out of the current range of $100.453–$128.65, the rally can extend to $150, which might act as a stiff resistance. A break down of $100 can plunge the pair to $81. We don’t find any buy setups, and are thus not recommending any trades on the pair.
TRON has been trading inside the range of $0.0183–$0.02815521 for more than two and a half months. Currently, the price is trading in the upper half of the range.
The next movement on the TRX/USD pair will start after the breakout or breakdown from the range. A breakout can carry it to $0.04158193, while a breakdown can sink it to $0.00844479.
The price action inside the range will remain volatile. Therefore, we suggest traders wait for a breakout before establishing long positions.
Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.