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During a meeting with the president of Argentina, American venture capital investor Tim Draper spoke about the potential of blockchain and cryptocurrencies. He also urged the president to legalize Bitcoin to help the nation emerge out of the economic crisis. Later, during an interview, Draper said that he expects Bitcoin to reach $250,000 by 2022 and 2023. If crypto becomes easy to use, he expects people to ditch fiat and opt for Bitcoin.
But for now, companies are finding it difficult to use cryptos as a mode of payment. The latest to ditch cryptos is Amazon-owned streaming service Twitch. The company has not mentioned any specific reason for the decision.
Popular stablecoin Tether recently changed its previous claim that every token in circulation is “100 percent Backed” with fiat currency. It now states that each token is backed by “traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities.” This has raised a red flag as Tether has not offered itself for a third-party audit.
Bitcoin (BTC) has been trading close to $4,000 for the past few days. This small range trading is unlikely to continue for long. We anticipate a large range move within the next few days.
If the range expands to the upside, the BTC/USD pair can rally to $4,255. This is a major resistance, above which the pair will complete a double bottom pattern, that has a minimum target objective of $5,273.91.
However, if the range expands to the downside, the digital currency can fall to the 50-day SMA. If this support also gives way, the next support to watch on the downside is $3,355.
The 20-day EMA is flattening out and the RSI is just above the center, which points to a consolidation in the near term. Traders can retain the stop loss on the long positions at $3,550. As the bulls failed to scale above the psychological barrier of $4,000, we will trail the stops higher within the next few days.
Ethereum (ETH) has broken down of the 20-day EMA and the uptrend line. Its next support is at the 50-day SMA below which a fall to $125.88 is probable. If this support also breaks, the digital currency will lose momentum. Therefore, traders can retain the stop loss on the remaining long positions at $125.
Contrary to our expectation, if the price finds support at the 50-day SMA and reverses direction, it will again try to break out of $144.78. If successful, the ETH/USD pair can rise to $167.32.
However, the 20-day EMA has flattened out and the RSI has also dipped below 50, which points to a consolidation.
Ripple (XRP) has broken down of the uptrend line and has moved away from the moving averages. This shows that the bears have the upper hand. A break below $0.30 can drag the price to $0.29 and below it to $0.27795. This is a critical support that has held since December of last year. A breakdown of this can result in a retest of the yearly low.
Contrary to our expectation, if the XRP/USD pair rebounds from the current levels or from one of the supports on the downside, it will again try to rise above the overhead resistance of $0.33108. We anticipate a strong move if the price sustains above the resistance line of the descending channel. For now, traders can keep the stop loss on the long positions below $0.27795.
Litecoin (LTC) continues to face selling close to the resistance line. On the downside, the bulls are providing support at the 20-day EMA. The RSI is still showing a negative divergence, which is a red signal. A breakdown of the 20-day EMA and the uptrend line of the developing wedge will increase the probability of a fall to the 50-day SMA. Therefore, traders can trail the stop loss on the entire remaining long positions to $55.
However, if the LTC/USD pair rebounds from the 20-day EMA, it will again try to breakout of the resistance line and rally to its next target objective of $69.2790. Both the moving averages are sloping up, which shows that the bulls still have the upper hand. We expect a decisive move within the next few days.
The bulls are struggling to hold the 20-day EMA. A failure to bounce off this level increases the probability of a breakdown and a fall to the 50-day SMA, which might hold. With the 20-day EMA flattening out and the RSI close to 50, EOS is likely to become range bound for a few days.
If the bears sink the EOS/USD pair below the 50-day SMA, it can fall to $3.1534. This is the final support, below which the trend will turn negative. Therefore, traders can protect their remaining long positions with stops at $3.10.
On the other hand, if the pair bounces off the current levels or the 50-day SMA it will again try to break out of $3.8723. If this level is scaled, the next target to watch on the upside is $4.4930.
Bitcoin Cash (BCH) has risen to the overhead resistance of $163.89 where it is facing some resistance. However, both the moving averages are sloping up and the RSI is close to the overbought zone, which shows that the bulls are in the driver’s seat.
A breakout of $163.89 is likely to attract buyers, pushing the price to the next overhead resistance of $175 and above it to $220. The BCH/USD pair has a history of vertical rallies, hence, traders can hold the long positions with the stops at $140.
Our bullish view will be invalidated if the digital currency turns down from the current level and plunges below the 20-day EMA. In such a case, the pair might become range bound for a few more days.
Binance Coin (BNB) soared above the overhead resistance of $16.6442826 and reached very close to our target objective of $18 on March 24. We anticipate a strong resistance at $18. Therefore, we suggest traders book profits above $17, keeping only about 25 percent of the original long position open to ride any move higher. This can be held with a stop loss of $15.
If the bulls scale above $18, a rally to the lifetime highs of $26.4732350 is probable. This will make the BNB/USD pair one of the first cryptocurrencies to make a new high, which is a positive sign.
However, if the bears defend the $18 level, the price might correct to the 20-day EMA. If this support breaks, a fall to the 50-day SMA is probable. The trend will turn in favor of the bears if the pair sustains below the 50-day SMA.
After trying to hold the 20-day EMA for the past four days, Stellar (XLM) has broken down of it. This is a bearish sign because this shows a lack of buying at the strong support of the 20-day EMA.
If the price sustains below the 20-day EMA, the XLM/USD pair can plunge to the 50-day SMA. The uptrend line is just below this support. If the pair breaks below these supports, it can retest the lows.
Conversely, if the digital currency bounces off the current levels, it can reach the resistance line. On a break above $0.13250273, the cryptocurrency can reach $0.14861760. Traders can retain the stop loss on the long positions at $0.08.
Cardano (ADA) rallied sharply on March 22 and 23, and reached close to our first target objective of $0.066121. With the rise, both the moving averages have turned up and the RSI is also close to the overbought zone. This indicates that the bulls have the upper hand.
However, the ADA/USD pair is currently facing profit booking. In an uptrend, the pullbacks last anywhere between 1 to 3 days. If the pair bounces off the 20-day EMA, it will indicate strength. The next target to watch is $0.080.
On the other hand, if the digital currency turns down from the current levels and breaks below both the 20-day EMA and $0.051468, it will turn negative. Therefore, we suggest traders keep the stops on the long positions at $0.049.
Tron (TRX) broke out of the 20-day EMA on March 23 but hit a wall just above the 50-day SMA. Currently, the price is back below the 20-day EMA, which is a bearish sign.
If the TRX/USD pair breaks down of $0.0220, it can correct to $0.02094452. Both the moving averages are flattening out and the RSI has dipped marginally below 50. This points to a likely consolidation in the short term.
However, if the pair rebounds from the current levels or from $0.0220, it will attempt to break out of $0.02815521, which is a critical resistance. The digital currency will pick up momentum if it sustains above this level. Until then, it will continue to face resistance on every minor rally.