Bitcoin, Ripple, Ethereum, Bitcoin Cash, EOS, Stellar, Litecoin, Tron, Bitcoin SV, Cardano: Price Analysis, Jan. 11
After this week’s downturn following the Ethereum Classic 51% attack saga, how will the top ten coins behave in the short-term?
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The market data is provided by the HitBTC exchange.
When a price is forming a bottom, it is usually volatile as both the bulls and the bears are trying to gain the upper hand. In a bear market, any negative news is met with strong selling and that is what has happened over the past two days. The 51 percent attack on Ethereum Classic has spooked the sentiment and dragged the prices lower.
While the most recent fall shows that the sentiment is still fragile, a strong rebound from the current levels would indicate that there is demand on the dips, a markedly bullish sign. However, if the cryptocurrencies instead plummet to new lows, it would be a bearish sign.
CEO and co-founder of Circle, Jeremy Allaire, believes that the lack of regulatory clarity from the United States Securities and Exchange Commission (SEC) is the main hurdle facing the nascent asset class. According to him, cryptocurrencies will receive a boost when this issue is resolved.
Bitcoin has turned down from the neckline of the inverse head and shoulders pattern. If the price doesn’t stop at the current levels, it can retest the low of $3,236.09.
Both moving averages are flat and the RSI is seeing support at the trendline. If the BTC/USD pair turns around from the current levels, it will again attempt to break out of the neckline. If successful, it will complete the bullish inverse head and shoulders pattern. The traders can wait for a breakout and close above $4,255 before buying.
Another possible scenario is that of a range formation for a few days. We might suggest new positions after the support and resistance levels of the range are well defined.
Ripple triggered our stop loss at $0.32 on Jan. 10. If the price doesn’t turn around quickly from the current levels, the drop can extend to $0.27795.
After staying flat for the past few days, the moving averages have started to turn down, and the RSI has also dipped into the negative territory. This suggests that the bears have the advantage. The XRP/USD pair might drop to the bottom of the descending channel. The trader