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* BTC/USD, ETH/USD and LTC/USD market data is provided by the HitBTC exchange.
In the US, Keith Noreika, acting comptroller of the currency for the U.S. Treasury Department has said that Bitcoin companies might be granted “fintech charters” in the future. He also said that he was open to the idea of the banks conducting their business in cryptocurrencies.
This shows that while one nation is closing its doors to cryptocurrencies, others are warming up to it. Let’s see if this news can boost cryptocurrencies higher.
Though Bitcoin triggered our buy at $4120 levels, it could not sustain the rally and plunged to $4018.32. Nevertheless, lower levels attracted buying, again bringing Bitcoin to the verge of breaking out of the ascending triangle pattern, which is a bullish development.
The minimum target objective of a breakout from the triangle is $5358, however, we shall go one step at a time.
On a breakout above $4280, the currency is likely to rally to $4680, where we recommend selling half of one’s position. The other half can be held with a close stop, because above $4680 the digital currency can quickly rally to $5000 levels.
Traders who are long on our previous recommendations should keep a stop loss of $3750. They can tighten their stops further to $4000 once the digital currency rallies above $4280. We shall keep trailing the stops higher as the market moves in our favor.
Once it was clear that Ethereum wouldn’t breakout, sellers emerged. As a result, Ethereum plunged to $278.88, close to the trendline.
If the digital currency breaks below the trendline, it is likely to fall to $255 and to $235 levels. Therefore, we want to initiate a long position only on a confirmation of a resumption of the uptrend.
We now recommend a long position at $317. Traders should keep their stop loss at $270 and the target objective is $420.
However, there is significant resistance at $344. Therefore, traders should tighten their stop loss if the digital currency struggles to breakout of this resistance.
Bitcoin Cash is range bound between $385 and $549. Within this range, the cryptocurrency is likely to remain volatile. Therefore, we shall buy it only after it breaks out of the range. Until then, we will stick to the other cryptocurrencies that are trending.
However, for traders who want to trade Bitcoin Cash only, they can buy once the digital currency bounces from the lower end of the range at $385. Profits should be booked at the upper end of the range at $549. The stop loss for this trade can be kept at $350 because if the digital currency breaks down of this level, it can sink to $300.
Ripple could not continue higher after breaking out of the resistance at $0.19537. It fell to $0.18800 levels where buying emerged.
As a result, the digital currency has again broken out of $0.19537. We expect the currency to gain momentum once it breaks out of $0.22000 levels.
Traders who are long on our previous recommendation should maintain their stop loss at $0.16500. They should raise the stops to $0.18500 once Ripple breaks out of $0.22000.
The target objective is $0.25000.
If Litecoin breaks above $58, it is likely to start a new uptrend which could carry it to $72 levels. Therefore, traders can buy at $58 and keep a stop loss at $44. Once the currency breaks out of $64 the stop loss can be increased to $50.
*This article was written Sept 29, 7 p.m. UTC