Bitcoin, Ethereum, Ripple, EOS, Litecoin, Bitcoin Cash, Binance Coin, Stellar, TRON, Bitcoin SV: Price Analysis, March 8
While the current fall could dampen sentiment, the overall structure of major cryptocurrencies remains unchanged.
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The market data is provided by the HitBTC exchange.
The CEO of Twitter and Square, Jack Dorsey seems to be buying Bitcoin on a weekly basis. In a recent interview, he said that he had used up the $10,000 weekly limit on Square’s CashApp on buying the leading cryptocurrency. This indicates that Dorsey has been buying Bitcoin around the current price levels.
Christopher Giancarlo, chairman of the United States Commodity Futures Trading Commission (СFTC), has said that if blockchain technology was available in 2008, it could have helped the banks manage their data better.
According to Giancarlo, it could have helped the regulators take a more timely and appropriate action to tackle the financial crisis. This implies that the nascent technology could play an important role during the next crisis, if and when it happens.
It is no surprise that various industries are exploring options to use blockchain technology to increase productivity. As a result, global blockchain spending in 2019 is expected to reach $2.9 billion, according to advisory services firm International Data Corporation (IDC).
The crypto markets have been attempting a recovery over the past few days. Can this continue and precede a new uptrend, or is this another bounce that will be sold into? Let’s look at the charts and analyze.
Bitcoin (BTC) has been inching higher for the past three days. While it is positive that the price has been moving up, the speed of the rise is worrying. The current small range action shows a lack of urgency to buy at these levels. At this pace, the bulls will find it difficult to scale above the psychological resistance of $4,000.
Should the BTC/USD pair pick up momentum and move up, forming large trending movements, the probability of a break out of the overhead resistance increases. On breaking out of $4,255, the double bottom formation will complete, which will have a pattern target of $5,273.91. The moving averages have started to turn up, and the RSI is also in the positive territory, which shows that the bulls have a slight edge.
But if the pair fails to break out of $4,255, it will extend its stay inside the range for a few more days. The trend will turn negative if the price plunges below $3,355, and the downtrend will resume below $3,236.09.
For now, traders can retain the stops on the long positions below $3,236.09. We shall suggest adding more positions if the price sustains above $4,255.
Ethereum (ETH) has been sandwiched between the 20-day EMA and $144.78 for the past two days. Both of the moving averages are flat, and the RSI is also close to the midpoint, which suggests consolidation in the short term.
A break out of $144.78 will indicate strength that can carry the ETH/USD pair to the next overhead resistance of $167.32. If the price sustains above $167.32, it will complete an ascending triangle pattern, which has a target objective of $251.64.
Conversely, if the bears sink the price below 20-day EMA, a fall to 50-day SMA will be probable. If this support also crumbles, the slide can extend to $116.3. Therefore, traders can hold their remaining long positions with a stop loss of $125.
Ripple (XRP) has been trading close to the moving averages for the past two days. Both of the moving averages are flat, and the RSI is close to the center, which suggests that the range bound action between $0.27795 and $0.33108 is likely to continue for a few more days.
If the XRP/USD pair slides below $0.29282, it can drop to the bottom of the range at $0.27795. A breakdown from this will retest the low at $0.24508. If the price breaks down to new yearly lows, it will be a huge negative.
On the upside, the cryptocurrency will attract buyers if it sustains above $0.33108. We expect momentum above $0.33108 to push the price towards the resistance line of the descending channel. Traders can hold their long positions with stops below $0.27795.
EOS has been struggling to scale above the resistance of $3.8723 for the past three days. However, a small positive is that it has not given up much ground. Both of the moving averages are sloping up, and the RSI is in the positive zone, which shows that the bulls have the upper hand.
A fall from the current levels should find support at the 20-day EMA, and below it at $3.1534. The trend will weaken if the bulls fail to defend the 20-day EMA, and it will turn negative on a plunge below $3.1534.
Litecoin (LTC) broke out of $56.910 on March 7, but could not sustain the higher levels. If the price sustains above $56.910, it can move up to $61.5680, and above it to $65.5610.
Both of the moving averages are sloping up, and the RSI is also close to the overbought levels, which shows that the path of least resistance is to the upside. The only worrying factor is the negative divergence on the RSI.
If the LTC/USD pair doesn’t break out of $56.91 within a couple of days, it will be likely to attract profit booking that can drag it to the 20-day EMA. Therefore, traders can trail the stops on the long positions to $50 now, and raise them further if weakness sets in.
A breakdown of the 20-day EMA will be the first indication that the trend has weakened, and a fall to the 50-day SMA will probably follow.
Bitcoin Cash (BCH) failed to reach the top of the $120–$140 range after bouncing off the support on March 4, which shows a lack of buying at higher levels. Currently, the bears are attempting to push the price back to the bottom of the range at $120. The flat moving averages, as well as the RSI close to 50 levels, point to a few more days of consolidation.
A breakdown of $120 can sink the BCH/USD pair to $105, and if this level also breaks, it can fall to $73.5. Conversely, a breakout above $140 can propel the pair to the next overhead zone of $157.95–$163.89. The traders can retain the stops on their long positions at $116.
Binance Coin (BNB) scaled above our first target objective of $15 and reached a high of $15.9100517 on March 7. Currently, we see profit booking that has dragged the price back below $15. In a strong uptrend, the pullbacks usually last for one to three days.<