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The market data is provided by the HitBTC exchange.
The CEO of Twitter and Square, Jack Dorsey seems to be buying Bitcoin on a weekly basis. In a recent interview, he said that he had used up the $10,000 weekly limit on Square’s CashApp on buying the leading cryptocurrency. This indicates that Dorsey has been buying Bitcoin around the current price levels.
Christopher Giancarlo, chairman of the United States Commodity Futures Trading Commission (СFTC), has said that if blockchain technology was available in 2008, it could have helped the banks manage their data better.
According to Giancarlo, it could have helped the regulators take a more timely and appropriate action to tackle the financial crisis. This implies that the nascent technology could play an important role during the next crisis, if and when it happens.
It is no surprise that various industries are exploring options to use blockchain technology to increase productivity. As a result, global blockchain spending in 2019 is expected to reach $2.9 billion, according to advisory services firm International Data Corporation (IDC).
The crypto markets have been attempting a recovery over the past few days. Can this continue and precede a new uptrend, or is this another bounce that will be sold into? Let’s look at the charts and analyze.
BTC/USD
Bitcoin (BTC) has been inching higher for the past three days. While it is positive that the price has been moving up, the speed of the rise is worrying. The current small range action shows a lack of urgency to buy at these levels. At this pace, the bulls will find it difficult to scale above the psychological resistance of $4,000.
Should the BTC/USD pair pick up momentum and move up, forming large trending movements, the probability of a break out of the overhead resistance increases. On breaking out of $4,255, the double bottom formation will complete, which will have a pattern target of $5,273.91. The moving averages have started to turn up, and the RSI is also in the positive territory, which shows that the bulls have a slight edge.
But if the pair fails to break out of $4,255, it will extend its stay inside the range for a few more days. The trend will turn negative if the price plunges below $3,355, and the downtrend will resume below $3,236.09.
For now, traders can retain the stops on the long positions below $3,236.09. We shall suggest adding more positions if the price sustains above $4,255.
ETH/USD
Ethereum (ETH) has been sandwiched between the 20-day EMA and $144.78 for the past two days. Both of the moving averages are flat, and the RSI is also close to the midpoint, which suggests consolidation in the short term.
A break out of $144.78 will indicate strength that can carry the ETH/USD pair to the next overhead resistance of $167.32. If the price sustains above $167.32, it will complete an ascending triangle pattern, which has a target objective of $251.64.
Conversely, if the bears sink the price below 20-day EMA, a fall to 50-day SMA will be probable. If this support also crumbles, the slide can extend to $116.3. Therefore, traders can hold their remaining long positions with a stop loss of $125.
XRP/USD
Ripple (XRP) has been trading close to the moving averages for the past two days. Both of the moving averages are flat, and the RSI is close to the center, which suggests that the range bound action between $0.27795 and $0.33108 is likely to continue for a few more days.
If the XRP/USD pair slides below $0.29282, it can drop to the bottom of the range at $0.27795. A breakdown from this will retest the low at $0.24508. If the price breaks down to new yearly lows, it will be a huge negative.
On the upside, the cryptocurrency will attract buyers if it sustains above $0.33108. We expect momentum above $0.33108 to push the price towards the resistance line of the descending channel. Traders can hold their long positions with stops below $0.27795.
EOS/USD
EOS has been struggling to scale above the resistance of $3.8723 for the past three days. However, a small positive is that it has not given up much ground. Both of the moving averages are sloping up, and the RSI is in the positive zone, which shows that the bulls have the upper hand.
A fall from the current levels should find support at the 20-day EMA, and below it at $3.1534. The trend will weaken if the bulls fail to defend the 20-day EMA, and it will turn negative on a plunge below $3.1534.
On the other hand, if the EOS/USD pair sustains above $3.8723, it can rise to the next overhead resistance of $4.4930. Traders can maintain their stops on the remaining long positions at $3.1.
LTC/USD
Litecoin (LTC) broke out of $56.910 on March 7, but could not sustain the higher levels. If the price sustains above $56.910, it can move up to $61.5680, and above it to $65.5610.
Both of the moving averages are sloping up, and the RSI is also close to the overbought levels, which shows that the path of least resistance is to the upside. The only worrying factor is the negative divergence on the RSI.
If the LTC/USD pair doesn’t break out of $56.91 within a couple of days, it will be likely to attract profit booking that can drag it to the 20-day EMA. Therefore, traders can trail the stops on the long positions to $50 now, and raise them further if weakness sets in.
A breakdown of the 20-day EMA will be the first indication that the trend has weakened, and a fall to the 50-day SMA will probably follow.
BCH/USD
Bitcoin Cash (BCH) failed to reach the top of the $120–$140 range after bouncing off the support on March 4, which shows a lack of buying at higher levels. Currently, the bears are attempting to push the price back to the bottom of the range at $120. The flat moving averages, as well as the RSI close to 50 levels, point to a few more days of consolidation.
A breakdown of $120 can sink the BCH/USD pair to $105, and if this level also breaks, it can fall to $73.5. Conversely, a breakout above $140 can propel the pair to the next overhead zone of $157.95–$163.89. The traders can retain the stops on their long positions at $116.
BNB/USD
Binance Coin (BNB) scaled above our first target objective of $15 and reached a high of $15.9100517 on March 7. Currently, we see profit booking that has dragged the price back below $15. In a strong uptrend, the pullbacks usually last for one to three days.
However, the failure to sustain above $15 after breaking out of it, shows that the bulls are nervous at higher levels. Therefore, we suggest traders book profits on 40 percent of their long positions on any pullback towards $15 and raise the stops on the rest to breakeven. Let’s avoid losing money if the price turns down sharply from the current levels.
If the bulls hold the price at $14 and resume the uptrend, a rally to $18 is probable. We anticipate a strong resistance at $18, but if this is crossed, the BNB/USD pair might retest the lifetime highs. This shows that the pair is extremely positive.
Our bullish view will be invalidated if the current pullback extends to the 20-day EMA and breaks it. However, we give a low probability of this occurring.
XLM/USD
Stellar (XLM) is attempting to break out of the overhead resistance at $0.09285498. If successful, it will move up to $0.10. If the bulls scale above this level, we anticipate a rally to $0.13427050. Therefore, traders can buy above $0.10 and keep a stop loss at $0.08.
As this virtual currency has been an underperformer, we suggest using only 50 percent of the usual position size.
Conversely, if the XLM/USD pair turns down either from $0.09285498 or from $0.10, it can fall to $0.08184371. If this support also cracks, the pair will turn negative and can drop to the yearly low.
Both of the moving averages are flattening out, and the RSI is close to the midpoint. This suggests that the bears are losing momentum.
TRX/USD
Tron (TRX) failed to sustain above the 20-day EMA on March 5 and 6, which is a bearish sign. The price is back at the support of $0.02306493. If the bears sink the cryptocurrency below this support, a fall to $0.02094452, and below that to $0.0183 will be probable.
The 20-day EMA has started to turn down, and the RSI has also dipped into the negative zone. This shows that the bears have the upper hand in the short term. As long as the price remains below the 20-day EMA, every pullback will be sold into.
Our bearish view will be negated if the TRX/USD pair rebounds sharply from $0.02306493 and rises above $0.02815521.
BSV/USD
Bitcoin SV is attempting to break out of the overhead resistance at $71.412. If successful, it will move up to $77.035, above which, a rally to $102.580, followed by a move to $123.980 will be probable. Traders can attempt to ride this upward move by initiating long positions at $78, with a stop loss at $58.
However, if the BSV/USD pair fails to break out of $71.412, it will remain stuck in the range of $65.031–$71.412. There are many supports on the downside.
The pair will turn negative if the price plummets below $58.072. Both of the moving averages are flat, and the RSI is also near the midpoint. This shows that the pressure from bears has decreased, and a consolidation in the short term is likely.
The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.