Bitcoin, Ethereum, Ripple, Litecoin, EOS, Bitcoin Cash, TRON, Stellar, Binance Coin, Bitcoin SV: Price Analysis, February 15
Some experts predict the downfall of tokens with no clear use cases, while touting Bitcoin as a clear winner in the long run.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Market data is provided by the HitBTC exchange.
United States banking giant JPMorgan Chase, whose CEO has been one of the most vocal critics of cryptocurrencies, has announced the launch of its own cryptocurrency, named “JPM Coin.” This clearly shows that many criticize the technology as they do not understand it, but once they realize its potential, they readily become a part of the space.
As the market matures, it will differentiate between cryptocurrencies. Token that do not have anything concrete to offer will fall by the wayside as others with a strong use case will reward their investors. Barry Silbert, CEO and founder of Digital Currency Group and Grayscale Investments, believes that most digital tokens “will go to zero.”
Niall Ferguson, British economic and financial historian and author of 14 books, said that Bitcoin is likely to be viewed as digital gold because its performance is not correlated to any other asset class. However, he does not see cryptocurrencies replacing fiat currencies completely.
With most news turning positive, is it a good time to buy a few of the major cryptocurrencies? Let’s find out.
Over the past week, Bitcoin (BTC) has been giving up ground. Though the fall is not sharp, it shows a lack of demand at current levels. Both the moving averages have turned flat and the RSI is in the neutral zone, which points to a likely consolidation.
Our view of a range bound trading action will be invalidated if the BTC/USD pair breaks out of the downtrend line. Above the downtrend line, a rally to $4,255 is likely. We expect a strong resistance at this level. A breakout of $4,255 will complete a double bottom pattern that has a target of $5,273.91.
If the bears sink the digital currency below the 20-day EMA, a drop to $3,355 and below it to $3,236.09 is possible. A break of the yearly low will resume the downtrend and can result in a decline to $3,000 and below it to $2,600.
We shall wait for the price to sustain above both the moving averages and the downtrend line before proposing a trade in it.
Ethereum (ETH) continues to face resistance at the 50-day SMA. It has become a major roadblock for the bulls that needs to be crossed quickly, else we anticipate a fall to $116.30 and if that gets broken, a retest of $103.20.