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The market data is provided by the HitBTC exchange.
In a recent interview with Cointelegraph, Sterling Witzke, partner at Winklevoss Capital, claimed that institutional investors are looking into the cryptocurrency industry, but are not quite ready to take the big plunge yet.
According to her, the unfavorable regulatory environment in the United States and the lack of adequate security measures in are two major factors that need to be sorted out if institutions are to make a decisive entry.
Companies are trying various approaches to opening up Bitcoin and other cryptocurrencies to the mainstream audience.
One such attempt is by Bitcoin ATM company Coinme that has partnered with coins-to-cash converter Coinstar. The two companies aim to facilitate buying Bitcoin through Coinstar kiosks that are going to be put up at grocery stores throughout various countries.
As if the number of existing cryptocurrencies was not enough, researchers from seven top U.S. Universities have come together to launch a “globally scalable decentralized payments network.” This shows that some of the top minds in the industry are positive on the prospects of cryptocurrencies in the future.
Bitcoin’s (BTC) volatility has declined sharply in the past three days. We anticipate a resolution of this tight range within the next few days. Both moving averages are either flat or marginally sloping down. The RSI is in the negative zone. This shows that the path of least resistance is to the downside.
A breakdown of $3,473.47 can push the BTC/USD pair towards the year-to-date low of $3,236.09. On the contrary, if the bulls push the price above the moving averages, a rally to $4,000 is possible. We anticipate a strong resistance in the zone of $4,000–$4,255.
If the bulls scale this zone, the leading cryptocurrency might start a new uptrend. We shall wait for a reliable buy setup to form before recommending any trades in it. Until then, it is best to remain on the sidelines.
The failure of Ripple (XRP) to break out of the moving averages will attract sellers. A breakdown of $0.31121 can lead to a decline to $0.27795.
The trend is down as the XRP/USD pair continues to trade inside the descending channel. Both of the moving averages have turned down marginally and the RSI is in the negative zone, which suggests that the bears have the upper hand.
The first sign of a probable trend reversal will be a breakout and close above the downtrend line. Such a move can see the price move to $0.4, and above it to the resistance line of the channel. We couldn’t find a reliable trade setup at the current levels, so we are not suggesting any new long positions.
Though the bulls have successfully defended the 50-day SMA for the past four days, they haven’t been able to push Ethereum (ETH) above the 20-day EMA.
The 20-day EMA sloping down and the RSI in the negative zone suggest that the bears have the advantage in the short term. A breakdown of $116.3 will increase the probability of a fall to $100, and further to $83.
However, if the bulls push the price higher, a breakout above $140 can carry the ETH/USD pair towards the next overhead resistance of $167.32. We shall wait for a confirmed change in trend before proposing a trade in it.
The volatility in Bitcoin Cash (BCH) has shrunk dramatically in the past three days, which shows a lack of both buying and selling interest.
If the buyers return in large numbers and push the BCH/USD pair above the moving averages, a rally to $177.3 will be probable.
Nonetheless, if the bears sink the digital currency below $121.3, a decline to $100, and below that to $73.5, will be possible.
Though EOS continues to trade inside the range of $2.3093–$3.2081, the bulls are struggling to push the price above the 20-day EMA.
A breakdown of the range and $2.1733 can push the EOS/USD pair towards $1.7746, and below that to the recent low of $1.55.
Conversely, if the bulls push the price above the 20-day EMA, the cryptocurrency might reach the top of the range. With both of the moving averages flat and the RSI marginally in the negative zone, a consolidation is likely.
The intraday range has tightened further in Stellar (XLM). The bulls and the bears are in a state of balance.
A break below $0.010235190 will increase the probability of a retest of $0.09285498, below which the downtrend will resume.
If the bulls push the XLM/USD pair above the 20-day EMA and the 50-day SMA, a move to $0.13427050 will be possible. A break out of this level will be the first indication that the trend is about to reverse. Currently, we couldn’t find any bullish patterns, so we are not suggesting a trade.
Litecoin (LTC) has been trading between the moving averages for the past four days. Such a tight range is unlikely to sustain for a long time.
After this period of low volatility, we expect the range to expand in the next few days. However, it is difficult to predict which way the break will happen because the moving averages are flat and the RSI is also just below the 50 levels.
If the LTC/USD pair scales above the 20-day EMA, it might attempt to move up to $36.428, and further to $40.784. However, if the bears sink the virtual currency below the support zone of $27.701–$29.349, a fall to $23.090 will be probable. Therefore, long positions should be protected with a stop loss at $27.5.
For the past two days, Tron (TRX) has been trading inside the intraday high and low formed on Jan. 15 of this year.
A breakout and close above the overhead resistance zone of $0.02733572–$0.02815521 might start a new uptrend that could carry the TRX/USD pair to $0.04.
On the other hand, if the price breaks down of the 20-day EMA, it might correct to $0.0211344, and below it to $0.0183. We suggest traders either buy closer to $0.0183, or on a close above $0.02815521 (UTC time frame). We couldn’t find any reliable trades inside the range.
Not much is happening in Bitcoin SV (BSV) as it remains stuck inside a very tight range of $74.022–$88.722.
A breakdown of this tight range will lead to a retest of $65.031. A break of this level will trigger the liquidation of long positions that can plunge the BSV/USD pair further to $57, and below that to $38.528.
The first sign of recovery will be when the bulls push the price above the moving averages and sustain it there. Until then, we suggest the traders stay on the sidelines.
Though Cardano (ADA) has closed above the 20-day EMA, it is yet to make a decisive move higher. Currently, the bulls are struggling to sustain above the moving average.
Both moving averages are flat, and the RSI is close to 50 levels, which points to a consolidation in the near term.
The levels to watch on the downside are $0.4 and $0.036815, whereas an important threshold on the upside is $0.051468. If this level is crossed, the ADA/USD pair can move up to the resistance line of the ascending channel.
However, we couldn’t find any bullish setups at the current levels, so we remain neutral on the coin.
The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.