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The market data is provided by the HitBTC exchange.
Nikolay Storonsky, CEO and co-founder of Revolut Ltd., a digital banking provider with a user base of two million, has said at the Web Summit 2018 in Lisbon, that large institutions are showing little interest in digital assets.
Any new technology takes time to catch up and become relevant to everyone. Even the internet took time to grow to its current scale. ConsenSys founder Joseph Lubin has said that Blockchain might “take a little longer” than the internet to reach mass adoption.
Venture capital investor Tim Draper, in a recent panel discussion, reiterated his previous call that Bitcoin will reach the price of $250,000 per coin by 2022. He believes that with mass adoption of Bitcoin, people are likely to switch from fiat currencies that are bound by a specific geography to cryptocurrencies, which in turn have universal acceptance.
The recently concluded U.S. midterm elections have seen a number of pro-blockchain politicians being elected to office, which is a positive sign. Though the market movement is slow now, the future looks encouraging for the nascent asset class.
BTC/USD
The dip below $6,400 was purchased on Nov. 11, which shows buying at lower levels. However, Bitcoin is facing overhead resistance from both moving averages, which indicates that buying dries up at higher levels.
Positional traders should avoid trading when the range is tight and shrinking. A large well-defined range provides an opportunity to buy low and sell high, however, the BTC/USD pair is not allowing such an opportunity.
If the bulls push the price above $6,831.99, the digital currency is likely to invite short covering, propelling the price further to $7,400, and above that to $8,400.
On the other hand, if the bears break below the critical support of $5,900, it might result in panic selling, dragging the pair to the lower levels of $5,000–$5,450. Therefore, traders can keep the stop loss on their long positions at $5,900.
ETH/USD
Ethereum is not showing any signs of a trend. The investors aren’t looking to sell at the current levels, and the new money doesn’t want to enter until there is a trend. So the price, the moving averages, and the RSI are all flat.
The first sign of a trend will be when the ETH/USD pair escapes the tight range of $188.35–$249.93. An upside breakout will indicate that the bulls have the upper hand and a new uptrend is likely. A break down of the range will indicate that panic has gripped the owners, and they are dumping their holdings.
We recommend traders wait for a break out of $249.93 before initiating any long positions. Aggressive positions can also be taken if the support at $188.35 sees strong buying by the bulls. Until then, we suggest traders remain on the sidelines.
XRP/USD
Ripple is finding support just above the moving averages, which is a positive sign. The moving averages continue to slope up, with the RSI in the positive territory. This confirms that the bulls have the upper hand in the short-term.
If the bulls succeed in breaking out of $0.565, a rally to the first target objective of $0.625 is likely, where traders can book partial profits. If this level is crossed, the rally can extend to $0.7644.
Our bullish assumption will be invalidated if the XRP/USD pair turns around and breaks below the moving averages. In such a case, a drop to $0.42646, followed by a fall to $0.37185 is probable. Therefore, traders can trail their stop loss higher to $0.45.
BCH/USD
Bitcoin Cash has pulled back from the overhead resistance at $660.0753. We anticipate a strong support between the 20-day EMA and $500, which is the 61.8 percent Fibonacci retracement level of the recent rally.
The bounce from the current level might retest $660.0753 once again. A breakout will start a new uptrend, whereas a failure will keep the virtual currency in a large range of $408.0182–$660.0753.
Contrary to our opinion, if the BCH/USD pair breaks $500, the upward move will lose strength. The next support level on the downside is $460, and if this level breaks, a complete retracement of the recent rally to $410.2768 is probable. Therefore, traders who have partial positions left can keep a stop loss of about $480, which is just below the 50-day SMA.
EOS/USD
EOS has been trading close to the midpoint of the range for the past three days. Both moving averages have flattened out and are close to each other. The RSI is also close to the 50 levels, which shows equilibrium between demand and supply.
We won’t be able to find any new trades for as long as the EOS/USD pair stays between $5 and $6. If it breaks out of this tight range, it will increase the probability of a rally to $6.8299. A reversal will be confirmed when the price sustains above $6.8299 for three days.
On the other hand, a break below $5 can result in a dip to the next support at $4.49, below which, a retest of the $3.8723 will be on the cards. Therefore, traders who own long positions can keep a stop loss of $4.9 on their existing positions.
XLM/USD
Stellar is showing promise as it has formed an ascending channel. It triggered our buy suggested in the Nov. 7 analysis.
It is currently facing resistance at the resistance line of the channel, yet it remains positive because both moving averages are sloping up. Hence, any pullback is likely to find support at the trendline, and below that at the 20-day EMA.
If the XLM/USD pair breaks above the channel, it is likely to pick up momentum, break out of the immediate resistance at $0.304, and rally towards its target objective of $0.36. For now, we suggest keeping the stops at $0.2. We shall watch for a couple of days and then raise the stops higher.
LTC/USD
Litecoin continues to slide after turning down from the downtrend line of the descending triangle. It might retest the critical support zone at $47.246–$49.466 once again. This zone has held on four previous occasions; hence, we anticipate this support to hold once again. Nevertheless, traders left with partial long positions on our recommendations can close them at $50.
If the bulls succeed in holding the critical support zone and show signs of a rebound, we might suggest to go long again. Our bullish view will be invalidated if the bears sink the LTC/USD pair below $47.246. In such a case, the downtrend will resume and can push prices to the next support levels at $40 and $32.
ADA/USD
For the past three days, Cardano has been trading close to the moving averages that have flattened out. The RSI is also just above the 50 levels. All these show a balance between the buyers and the sellers.
A new trend will start on a break out of $0.094256, or on a break down of the support at $0.060105. Between these two levels, random and volatile price action is likely to continue.
The first sign of strength will be if the ADA/USD pair sustains above $0.082207. However, we suggest traders wait for a new uptrend to start before initiating any long positions.
XMR/USD
The attempt to pull back from close to $102.6 is facing resistance at the 20-day EMA. If the bulls fail to scale the moving average, Monero is likely to drop to the bottom of the tight range at $100.453.
The XMR/USD pair has successfully held the support at $100.453 on a closing basis on three previous occasions. Therefore, we expect it to offer a strong support this time too. However, contrary to our expectations, if the bears break below the range, a fall to the critical support at $81 is probable.
On the upside, the bulls will gain strength if the price sustains above $112.44. We shall turn positive above $128.65. Currently, the virtual currency is not showing any reliable patterns that can be traded.
TRX/USD
The range in TRON has been shrinking. It is currently trading between $0.02134798 and $0.02517782. The RSI has also been moving between the levels of 40 and 60.
If the bulls defend $0.02134798, the TRX/USD pair will again attempt to move to the top of the range at $0.02517782.
However, if the bears break below the bottom of the tight range, a drop to the critical support at $0.0183 is probable. A break below this support will resume the downtrend.
We shall turn positive on the digital currency on a breakout and close (UTC time frame) above $0.03. Until then, we suggest traders remain on the sidelines.
The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.