Bitcoin, Ripple, Ethereum, Bitcoin Cash, EOS, Stellar, Litecoin, Tron, Bitcoin SV, Cardano: Price Analysis, Jan. 16
Despite the market-wide price plunge last year, cryptocurrency trading volumes have actually increased in 2018 vs 2017.
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The market data is provided by the HitBTC exchange.
Although cryptocurrency prices have so far been unable to stage a recovery, the companies in the industry are still launching products that are required by the institutional players.
Cryptocurrency asset manager LedgerX has launched a Bitcoin (BTC) price volatility index called LedgerX Volatility Index (LXVX) that will function as a “bitcoin fear index,” similar to how the CBOE Volatility Index (VIX) works for the stock markets. Though the index is not tradeable currently, the company plans to make it so in the future.
Despite the market-wide price plunge last year, crypto trading volumes have actually increased in 2018 vs 2017, according to a recent report by research firm Diar. This shows that the traders are still active in the space.
In a survey of United States consumers by Cornerstone Advisors, only 8 percent said that they own any cryptocurrency. Another 17 percent said that they might buy some in the near future. This implies that a lot of money is waiting to enter the markets when the trend changes.
The markets will look for clues from some of the important events expected to take place in 2019. Though crypto prices this year will remain well below their lifetime highs, we expect them to go much higher than the current levels.
Bitcoin (BTC) is currently range bound between $3,236.09 and $4,255. The 20-day EMA has started to slope down, and the RSI is also in the negative territory. This suggests that the bears have the upper hand in the short term.
The immediate resistance is at the moving averages and above that at the downtrend line. One more resistance line is at $4,255.
On the downside, a slide below $3,473.47 can result in a retest of $3,236.09. A breakdown to new lows will severely dampen sentiment and trigger a few stops on the long positions. The next support is the psychological level of $3,000.
The BTC/USD pair is likely to indicate a clear direction within the next few days. Due to the uncertainty, we suggest traders wait until a new buy setup forms.
Ripple (XRP) failed to scale above the moving averages in the past two days. However, as it has not given up much ground, we anticipate another attempt by the bulls to scale the overhead resistance.
If successful, the XRP/USD pair can rally to the overhead resistance of $0.4, and above it to the resistance line of the descending channel. A break out of the channel will signal the probability of a change in trend.
On the contrary, if the price turns down from the moving averages once again, it is likely to slump to the support at $0.27795. The moving averages are flattening out and the RSI is marginally in the negative territory, which suggests consolidation in the near term. We will wait for a bullish setup to form before recommending a trade in the pair.
Ethereum (ETH) bounced off the critical support at $116.3 on Jan. 14, but failed to break out of the 20-day EMA. It is currently stuck between both moving averages.
A break out of the 20-day EMA can carry the price to $167.32, whereas a break down of the 50-day SMA and $116.3 can plunge it to $100, and below that to $83.