Bitcoin, Ripple, Ethereum, Bitcoin Cash, EOS, Stellar, Litecoin, TRON, Bitcoin SV, Cardano: Price Analysis, Jan. 21
Statements from several industry insiders suggest that cryptocurrencies are undervalued, and a reversal should soon be on the cards.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The market data is provided by the HitBTC exchange.
Hughes is confident about the European Union coming up with a more defined regulatory framework for crypto in 2019. After the regulations are in place, Hughes anticipates large investment banks to finally enter the scene.
U.K.-based investor and entrepreneur Alistair Milne is confident that Bitcoin will break out of its lifetime high and sustain above it. He has based his opinion on the anticipated increase of the level of adoption of the leading cryptocurrency. Milne is certain that Bitcoin will survive for another 100 years.
Similar to how prices tend to overshoot to the upside during a bull market, they also usually overshoot to the downside. Changpeng Zhao, the CEO of Binance, believes that a lot of development has taken place in the crypto space, implying that cryptocurrencies are currently undervalued.
So should the traders start buying? Let’s find out.
Bitcoin (BTC) has been trading below the moving averages since Jan. 10. Attempts by the bulls to push the price higher have been met with selling at the moving averages. This is a bearish sign.
The cryptocurrency hasn’t been able to make a higher high and a higher low, a signal that we were watching out for. A set of higher highs and higher lows would indicate a probable change in trend.
If the bears force the price below $3,236.09, it will be a new lower low that would confirm the continuation of the downtrend.
The first sign of a probable change in trend will be when the BTC/USD pair breaks out of the downtrend line and sustains above it. The recovery will gain strength if the bulls scale above $4,255. Until then, every rise to the resistance levels will be sold into.
We might suggest long positions closer to $3,236.09 if the price rebounds sharply from the support, because that would indicate a strong demand at lower levels. Another probable trade can be taken on a breakout above $4,255. Until then, we suggest traders remain in a wait and see mode.
Ripple (XRP) has been trading in a tight range since Jan. 11. This is unlikely to continue for long. We expect either a breakout or breakdown from this range within the next few days.
The downtrending moving averages and the RSI in the negative area suggest that sellers are at an advantage. If the bears force a breakdown below the range, the XRP/USD pair can drop to $0.27795.
On the other hand, if the bulls push the price above the moving averages and the downtrend line, the digital currency can move up to $0.4. We suggest traders wait for a bullish pattern t