Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, Monero, Dash: Price Analysis, October 1
The newsflow regarding cryptocurrencies has been fundamentally positive this year. Could this affect prices? Let’s find out.
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Market data is provided by the HitBTC exchange.
Discussions on blockchain and cryptocurrencies have entered the United Nation’s General Assembly. In his recent address, Malta’s Prime Minister Joseph Muscat has said that cryptocurrencies and blockchain can solve several problems and will become the money of the future.
This year, Malta has positioned itself as the “blockchain island,” introducing favorable regulations for the new asset class. While other nations view the crypto industry as a problem, Malta has chosen to look at the advantages it can offer and has adopted it wholeheartedly.
In the U.S., several blockchain companies have formed a coalition and hired Klein/Johnson Group, a bipartisan lobby shop. An interesting point to note is that the firm has agreed to accept part of its payment in digital coins.
Though China has banned crypto trading, Beijing Sci-Tech Report (BSTR), China’s oldest tech publication, has said it will accept Bitcoin for its 2019 subscriptions.
The fundamental news flow in 2018 has been positive. Could it begin to influence the prices of cryptocurrencies? Should investors start buying now? Let’s find out.
Bitcoin has been consolidating in a small range for the past two days. Both moving averages are flat and the RSI is close to the neutral territory. This suggests an equilibrium between the buyers and the sellers.
However, this small range is unlikely to sustain for long. As the cryptocurrency has made a sequence of lower highs in 2018, the failure of the bulls to break out of the overhead resistance will attract selling.
If the bears break down and sustain below the trendline, the BTC/USD pair can decline to $6,341 and below that to the critical support zone of $5,900–$6,075.
On the upside, the $6,831.99 line is the critical resistance. If the bulls scale above this, a rally to $7,413.46 will ensue. We anticipate a large range move within the next couple of days. For now, traders can hold their long positions with the stop losses (SLs) at $5,900.
Ethereum has been trading close to the 20-day EMA for the past seven days. Both moving averages have turned flat and the RSI has also been hovering around the midpoint. This shows a consolidation in the range of $200–$250.
A break out of the overhead resistance of $250 and the 50-day SMA will tilt the balance in favor of the bulls. Above $250, the ETH/USD pair might rally to $300–$322.57.
The key support to watch on the downside is the zone of $192–$200. If the bears sink the pair below this support, a retest of the lows is likely. We should get a decisive move in either direction this week.