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Market data is provided by the HitBTC exchange.
It is the last day of a very tough year for crypto traders. While 2018 started on an upbeat note, it is ending with uncertainty. Traders and analysts are divided on whether cryptocurrencies have bottomed out. This, in a way, is good, because markets are cautious and excesses have been removed.
There are a number of events in 2019 that could turn crypto markets around. All eyes will be on institutional investors because their involvement is needed to propel markets to the next level. Even in the wake of a crushing bear market, crypto traders are looking to invest in virtual currencies. 40 percent of participants in a recent Chinese survey showed interest in investing in cryptocurrencies in the future. Similar surveys in the United States, Germany and the United Kingdom have all projected favorable demand for cryptocurrencies.
We are bullish on digital currencies for 2019, however, we believe that it will be a gradual move higher and expectations should be muted. Trade safe so that we are around to reap the benefits when the next vertical run happens. Are there any tradeable setups at current levels? Let’s find out.
Bitcoin is struggling to breakout of the 20-day EMA that has turned flat. Failure to break out will attract selling that will pick up momentum below $3,598.99. The downtrend will resume on a breakdown of the Dec. 15 low. The falling 50-day SMA confirms that the long-term trend is still down.
The breakout of the neckline has a pattern target of $5,500. Though there is a minor resistance at $4,914.11, we expect it to be crossed. Short-term traders can wait for a close above $4,255 to buy. The stops can be kept just below $3,550.
Ripple is facing a stiff resistance at the 50-day SMA. If the bulls fail to scale above this resistance quickly, a drop to $0.33108 is probable.
Both the moving averages are flattening out, which points to a likely consolidation in the near-term. The digital currency will turn positive in the short-term if the price sustains above $0.40. Such a move can result in a rally to the resistance line of the descending channel at about $0.48.
We can expect a new uptrend if the bulls breakout and close (UTC time frame) above the channel. In such a case, the rally can extend to $0.56, $0.62 and $0.7644.
The pullback in Ethereum stalled at $153 on Dec. 29 while managing to stay above $136 for the past two days.
Contrary to our expectation, if the ETH/USD pair turns down from the current levels and drops below $116.3, it can fall to $100 and below that to $83. We suggest traders wait for a new buy setup to form before buying it.
Bitcoin Cash is trading inside a descending channel. Currently, the bulls are attempting to keep the price above the 20-day EMA.
However, if the bears fail to breakout of the channel and the 50-day SMA, the BCH/USD pair can again turn down to the bottom of the channel. A break below the channel can lead to a drop to the low at $73.50.
The bulls have not been able to carry EOS much above the 20-day EMA. This shows a lack of buyers at higher levels. The 20-day EMA is more or less flat and the RSI is close to 50. This increases the probability of a consolidation in the near-term.
The bulls are struggling to push Stellar above the 20-day EMA. The 50-day SMA is turning down, which confirms the long-term downtrend. In the short-term, the RSI has fallen back below 50 and the 20-day SMA is flat, which suggests a probable consolidation. However, if the price slides below $0.11024826, it can retest the lows.
The recovery in Litecoin is facing a stiff resistance at the 50-day SMA. The bulls have not been able to sustain above it since Nov. 6, so a breakout and close above the 50-day SMA will signal strength.
If the LTC/USD pair turns down from current levels, it can slip back to $28.067 and if this support breaks, a retest of the lows is probable. The downtrend will resume on a break below $23.10.
The bulls attempted to rebound from close to the bottom of the range on Dec. 28 but the pullback fizzled near $100.
However, if the bulls defend the bottom of the range, the digital currency might remain range bound for a few more days. We shall turn positive above $123.98 or on a strong rebound from $80.352. Until then, we suggest traders remain on the sidelines.
TRON is finding support at $0.0183 and is facing resistance at $0.022. A breakout of $0.022 can result in a rally to $0.0246 and above it to $0.02815521.
Our positive view will be invalidated if the support at $0.0183 breaks. Therefore, traders who went long closer to $0.02, on our recommendation, should keep a stop just below $0.018. Below $0.0183, the digital currency can slide to $0.016 and $0.014.
Cardano has stayed above the 20-day EMA for the past three days. The 20-day EMA is gradually turning up and the RSI is in positive territory, which shows a marginal advantage to the bulls.
Conversely, if the ADA/USD pair turns down from current levels and breaks below $0.036815, it can retest the lows. We expect a decisive move within the next 3–4 days.