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While on one side, the traditional money managers and investment bankers continue to voice their opposition to Bitcoin, the State bank of Mauritius (SMB) has approved the use of Blockchain assets as collateral for loans.
Russia, on the other hand, is moving ahead with its own ‘CryptoRuble’, according to local news sources. Will this cryptocurrency succeed? Only time will tell.
However, early investors in cryptocurrencies continue to report staggering returns. One such person to report greater than 50,000% returns was Wikileaks founder, Julian Assange.
While a similar increase from the current levels is unlikely, we can still ride the trends and earn triple-digit returns in a calendar year.
It certainly can. However, this is a good place to book profits and wait for the next opportunity.
If the price breaks out of the channel, it is likely to become very positive and rally to $6400 quickly. We shall try to enter this trade if we get a good entry and stop loss point.
However, if the bulls are unable to break out of the overhead resistance, the cryptocurrency will either be range bound between $5400 and $5800 or correct to the breakout levels of $5000.
At the current levels, we don’t find a trade setup offering us a good risk to reward ratio. Therefore, we are currently not recommending any trade on the cryptocurrency.
Ethereum remained volatile ahead of its fork. Now, that the event is behind us, we expect the volatility to reduce.
Currently, it is facing selling above the $350 mark. Though it has broken above this level in intraday trading, it has not been able to close above it.
If we don’t see a close above $350 within the next two days, the bears are likely to sink the cryptocurrency back towards $316 levels.
On the other hand, if the bulls manage a close above $350, Ethereum can rally to $390 levels.
However, as the cryptocurrency lacks momentum at the current levels, we are not suggesting any trade on it.
Bitcoin Cash has been trading in a very small range for the past few days. Though the fall has been arrested, it is yet to show any buying interest.
However, for the digital currency to become positive again, it has to first break out of the downtrend line and form a series of higher highs and higher lows. Until then, every pullback towards the downtrend line and the 20-day exponential moving average (EMA) is likely to face selling pressure.
After a few days of low volatility, we expect volatility to increase over the next few days. However, it is difficult to forecast which way Bitcoin Cash will move. Therefore, presently, we think it’s better not to trade it.
We had recommended a long trade on Ripple in our previous analysis for the aggressive traders. Our profit objective was $0.3. What should we do now?
Ripple is close to our first target objective, where it is likely to face some resistance. Therefore, we suggest traders to book 30% profits on the existing positions at the current levels of $0.29 and hold the rest with a stop loss of $0.26.
This way, we will pocket a small profit and our remaining position becomes risk-free. If the digital currency breaks out of $0.3 levels, it can rally to $0.325 and $0.34 levels. Therefore, we want to hold the remaining position. However, once Ripple moves higher, please trail the stops accordingly.
We have long positions in Litecoin at $58 and $61. Our profit objective was $71 and yesterday, the cryptocurrency reached a high of $70.466.
The cryptocurrency is currently facing selling at the $70 levels. Today, it dipped back to $62 levels, where buying emerged.
Currently, it is attempting to climb back again. However, traders who are long at $58 and $61 should increase their stop loss to breakeven. We don’t want to see a loss on our positions after being so close to the target.
If the digital currency doesn’t breakout of $67, it will again fall to $58 levels.
However, if Litecoin rallies back to $70, please sell 30% positions and hold the rest with the stops at breakeven. We shall raise the stop loss once Litecoin breaks out of $71.