Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, EOS, Binance Coin, Stellar, Cardano, TRON: Price Analysis April 19
The crypto and blockchain space is attracting investment from both venture capitalists and the government.
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Market data is provided by the HitBTC exchange.
The recovery in crypto prices has led to an increase in over-the-counter (OTC) demand for Bitcoin and altcoins. This surge in volume was cited by Binance’s CFO as one of the reasons for its strong Q1 performance.
Another platform being watched closely is the yet-to-be-launched Bakkt. Anonymous sources told Bloomberg that the United States Commodity Futures Trading Commission (CFTC) is reluctant to approve the Bitcoin futures because Bakkt intends to hold user assets. However, as the CFTC recognizes state bank and trust licenses, Bakkt might seek a New York BitLicense to launch its bitcoin futures. This is likely to increase the possibility of a green signal by the CFTC for the project.
The crypto and blockchain space is attracting investment from both venture capitalists and the government. Compared to the $2.5 billion in investments by venture capital firms in 2018, the space has already seen investors pump in $850 million in 2019. At this pace, this year’s total investment is likely to top that of last year. Similarly, the U.S. federal government’s blockchain spending is expected to increase from $10.7 million in 2017 to $123.5 million by 2022.
Bitcoin (BTC) has continued to move up at a snail’s pace. This shows that the bulls are nervous to buy aggressively at higher levels. But if the digital currency rises above $5404.82, it might attract some buying and short covering. The target levels to watch on the upside are $5,674.84 and above it to $5,900.
The uptrending moving averages and the RSI close to the overbought zone suggests that the bulls are at an advantage. Our bullish view will be invalidated if the BTC/USD pair turns down from the current levels and plunges below $4,914.11. Such a move will signal profit booking and short initiation by the aggressive bears. The traders can trail the stop loss on the remaining long positions to $4,800.
Ethereum (ETH) has once again broken out of the overhead resistance of $167.32. It is now likely to attempt to scale $187.98. If successful, it will indicate strength and the bulls can propel the digital currency to $220. Though the target objective of a breakout of the ascending triangle is $251.64, it has a slew of resistance between $220 and $251.64.
Both the moving averages are gradually trending up and the RSI is in the positive zone. This suggests that the bulls have the upper hand.
Our bullish view will be invalidated if the bears sink the ETH/USD pair back below $167.32. A breakdown of $156.42 will turn the trend in favor of the bears. Traders can continue to hold the stop loss on the remaining long positions at $150. We shall trail the stops higher in a couple of days.
Ripple (XRP) broke out of $0.33108 on April 17 but could not sustain it. The price is again back below $0.33108. This shows a lack of buyers at higher levels. Both the moving averages are flat and the RSI is close to 50. This points to range-bound action for the next few days.
In our previous analysis, we had recommended buying if the XRP/USD pair sustained $0.33108 for the next two days. But with the price falling below $0.33108 again today, our buy condition has not triggered. Considering the repeated failed breakouts, we have withdrawn our buy proposal. We swill suggest a trade when the pair decisively sustains above $0.33108.
Currently, if the bears sink the digital currency below the 50-day SMA, it will signal weakness and a drop to $0.27795 is possible.
After failing to sustain above the overhead resistance of $332.58, Bitcoin Cash (BCH) is facing some profit booking. It can now dip to the 20-day EMA, which is likely to offer support. Both the moving averages are sloping up, which shows that the bulls have the upper hand. If the rebound from the 20-day EMA fails to breakout of the overhead resistance zone of $332.58–$363.30, it will remain range bound for a few days.
A break below the 20-day EMA can sink the BCH/USD pair to $239, which is a critical support. If this support gives way, it will indicate that the bears are back in action.
On the other hand, if the bulls succeed in breaking out of $363.30, the pair can rally to $451.32. The digital currency has a history of vertical rallies, hence, a breakout of $451.32 can surprise on the upside. We will wait for the uptrend to resume before proposing a trade.
Litecoin (LTC) has held the 20-day EMA for the past few days. This shows that the bulls are keen to defend this support. The 20-day EMA is sloping up gradually and the RSI is just above the midpoint. This suggests a marginal advantage to the bulls. If the price scales above $84.3439, we expect a quick move to the overhead resistance zone of $91–$100.
A breakout of the resistance zone will complete a rounding bottom pattern that has a target objective of $159 and above it $180. Traders can buy a small portion — about 30% — of their usual position size on a breakout and close (UTC time frame) above $84.3439. The rest of the position can be purchased above $100 with initial stop loss at $74.
Contrary to our expectation, if the LTC/USD pair turns around from any of the overhead resistances and plunges below $74, it can correct to the 50-day SMA and below it to $62.450.
EOS has been consolidating above the 20-day EMA for the past few days. The bulls have not allowed the price to dip below the 20-day EMA and the bear