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Market data is provided by the HitBTC exchange.
Bitcoin’s dominance has increased from just below 50% in early-April to 52.3%. This suggests that the focus is back on Bitcoin after the initial rally by the altcoins from the lows. As long as the leader stays strong, the recovery is on track.
While Bakkt is more institution oriented, LedgerX the United States-regulated crypto derivatives and clearing platform is planning to launch physically-settled Bitcoin futures contract targeting retail investors. LedgerX believes that as Bitcoin’s market capitalization is only equal to that of a large stock, huge institutional involvement is unlikely, hence, they are focusing on the retail crowd.
The recovery in cryptocurrencies has helped Binance’s profits soar by 66% in Q1 2019, compared to the previous quarter. This indicates that traders are quick to return to crypto markets on the first sign of a revival. If the recovery continues, it is likely to attract the traders still waiting for confirmation of a bottom.
Bitcoin (BTC) again bounced off the support at $4,914.11 on April 15. This is a positive sign as it shows that the bulls are keen to buy on dips closer to support. Both the moving averages are trending up and the RSI is close to the overbought zone. This shows that the bulls are in command. The price will now try to climb above $5,404.82.
If successful, the digital currency will move up to $5,674.84 and above it to $5,900. We expect the $5,900 level to bring in a lot of supply, making it difficult for the bulls to scale it on the first attempt.
Contrary to our assumption, if the bulls fail to push the BTC/USD pair above $5,404.82, it can remain range bound for a few days between $4,871.16 to $5,404.82.
The momentum will weaken if the bears sink the price below $4871.16. Such a move can result in a fall to the 50-day SMA. Hence, the traders can protect their remaining long positions with a stop loss at $4,700.
After failing to breakout and sustain above $167.32 for four consecutive days, Ethereum (ETH) fell below the 20-day EMA on April 15. However, the bears could not capitalize on this move as the digital currency bounced back the next day itself. This shows buying at lower levels.
The bulls should now quickly push the price above $167.32, else we might see another down leg. If the ETH/USD pair sustains above the overhead resistance, it can move up to $187.98. We expect the pair to pick up momentum after breaking out of it. The pattern target for a breakout of the ascending triangle is $251.64.
On the downside, the support lies at $156.42, below which a drop to the 50-day SMA is probable. Both the moving averages are gradually sloping up, which suggests a minor advantage to the bulls. Therefore, we suggest traders retain the stops on the remaining long positions at $150. We expect a decisive move within the next 3–4 days.
Ripple (XRP) plummeted below the 50-day SMA on April 15 but the lower levels saw buying, which pushed the price back up on the next day. This is a positive sign as it indicates that the bulls are keen to defend the 50-day SMA.
The bulls will now try to carry the XRP/USD pair back above the overhead resistance. If successful, a move to $0.37835 should be in the cards. We shall suggest entering long positions if the pair sustains above $0.33108 for the next two days. The stop loss for this trade can be kept at $0.30.
On the upside, if the bulls can ascend above $0.37835, the digital currency can start a new uptrend and rally to $0.55. Though $0.40 and $0.45 might act as resistances, we expect these levels to be crossed.
Our bullish view will be invalidated if the digital currency turns down and sustains below the 50-day SMA. In such a case, a drop to $0.27795 is possible.
The rally in Bitcoin Cash (BCH) on April 15 hit a wall at $335.62. The bulls have not been able to scale this level since then. However, the digital currency has not given up ground either, which indicates that the buyers are still not booking profits. If the price stays close to $332.58, it increases the probability of a breakout to the upside. With both the moving averages sloping up and the RSI close to the overbought zone, the path of least resistance is to the upside.
Nevertheless, if the BCH/USD pair fails to break out of the overhead resistance, it might remain range bound between $272.41 and $332.58 for a few days. The pair will turn negative on a breakdown of the support at $272.41. We might wait for the price to scale $363.30 before recommending a trade in it.
EOS has been sustaining above the 20-day EMA, which is a positive sign. Both the moving averages are moving up and the RSI is in the positive territory. This suggests that the bulls are in command.
If the EOS/USD pair breaks out of $5.6602, it can move up to $6.0726. The resistance line is close to this level and is likely to act as a roadblock. But if the bulls ascend the resistance line a move to the critical overhead resistance of $6.8299 is possible.
Contrary to our expectation, if the pair reverses direction and plummets below $5, it can drop to the $4.4930–$3.8723 support zone. We expect the buyers to step in this zone and provide support. As we do not find any reliable buy setup at current levels, we remain neutral on the digital currency.
Litecoin (LTC) has been struggling to bounce off the 20-day EMA. This shows a lack of buyers at higher levels. The bears will now try to sink the price below the 20-day EMA and $74. If successful, the correction can extend to the 50-day SMA. We anticipate a strong support closer to $62. Any breach of this support will turn the trend bearish.
Currently, the 20-day EMA is flattening out and the RSI is just above 50. This points to the probability of a range formation in the short term. Our view will prove to be wrong if the LTC/USD pair rebounds strongly from current levels and rises above the overhead resistance of $91 to $100. Such a move can result in a rally to $159 and above it to $180.
Binance Coin (BNB) continues to trade strong. It has maintained above the 20-day EMA for the past four days, which is a bullish sign. Both the moving averages are sloping up and the RSI is in positive territory. This indicates that the bulls are in command.
On a breakout above $22.1026895, a retest of the lifetime high at $26.4732350 is probable. If the bulls succeed in making a new lifetime high, it will be a huge sentiment booster.
However, if the price turns down from the current levels or from the overhead resistance it can drop to the 20-day EMA. If this support gives way, the next stop is the 50-day SMA. The negative divergence on the RSI is the only bearish factor that projects the possibility of a correction. Until the price remains above the 50-day EMA, we remain bullish on the BNB/USD pair. If this support breaks down, we can expect a deeper correction. We do not find any reliable buy setups at the current levels; hence, we are not proposing a trade in it.
Stellar (XLM) is largely stuck between the 20-day EMA and the 50-day SMA for the past five days. The 20-day EMA has flattened out and the RSI is close to the center. This increases the probability of a consolidation in the short term.
If the XLM/USD pair plummets below the 50-day SMA, it can drop to the uptrend line. A breakdown of this support will turn the tide in favor of the bears.
Conversely, a breakout above the 20-day EMA can carry the price to the downtrend line and above it to $0.14861760. We anticipate the start of a new uptrend if the bulls can sustain above $0.14861760. For now, we remain neutral on the digital currency.
Cardano (ADA) has been struggling to bounce off the 20-day EMA. The price keeps correcting to the moving average, which shows a lack of demand at higher levels. After the price action of the past few days, the 20-day EMA is flattening out and the RSI is also dropping to the midpoint. This suggests a range formation in the short term.
The ADA/USD pair will lose momentum if it breaks down and sustains below the 20-day EMA and $0.075920 support zone. On a breakdown of the zone, the decline can extend to the 50-day SMA.
Conversely, if the digital currency bounces off the 20-day EMA and scales above the downtrend line, it can move up to $0.094256. Though not perfect, we find a cup and handle pattern formation in process. This will complete when the price closes (UTC time frame) above $0.094256. We do not find a reliable buy setup at the current levels; hence, we are not suggesting a trade in it.
Tron (TRX) could not break out of $0.02815521 on April 15. It is currently stuck inside a tight range of $0.02815521 and $0.02525724. Both the moving averages are flat and the RSI is hovering close to 50. This suggests range-bound action for a few more days.
The TRX/USD pair will show strength if the bulls succeed in pushing the price above $0.02815521. If the price sustains above this level, it can move up to $0.03278079 and above it to $0.03575668.
On the other hand, a breakdown of the 50-day SMA can drag the price to $0.02094452 and below this level to $0.01830. Therefore, traders can protect their long positions with a stop loss of $0.0240.