Bitcoin, Ripple, Ethereum, Bitcoin Cash, EOS, Stellar, Litecoin, Tron, Bitcoin SV, Cardano: Price Analysis, Jan. 25
Bitcoin has been stuck in a tight range for the past few days, while its 14-day volatility plummeted to its lowest level since mid-November.
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.
The highly-anticipated Bitcoin ETF proposal by VanEck and SolidX partners to list on CBOE's BZX exchange was withdrawn on Jan. 23 due to the ongoing government shutdown. VanEck's founder and CEO, Jan Van Eck, told CNBC that they can allay many of SEC’s concerns but they “can’t have meetings when they’re shutdown.” The proposal will be resubmitted after the shutdown ends. Bitcoin has not reacted to this news, which is a positive sign.
The leading cryptocurrency has been stuck in a tight range for the past few days. Its 14-day volatility plummeted to its lowest level since mid-November, according to U.S. asset manager Blockforce Capital. This period of low volatility will be followed by another expansion in volatility.
Though it is difficult to predict which way the price will escape, analysts at JP Morgan believe that Bitcoin can plunge to $2,400 and below that to $1,260. According to them, using crypto in the real world is a challenge. They could pinpoint any major retailer who accepted crypto in 2018.
Additionally, the analysts do not expect banks to benefit from blockchain technology at least for another three to five years. These forecasts should be taken with a pinch of salt because the investment bank’s CEO, Jamie Dimon has been one of the most vocal high-profile critics of cryptocurrencies.
Cardano’s (ADA) founder, Charles Hoskinson anticipates cryptocurrencies will take more than a decade to reach their 2017 highs. However, by then, he expects the markets to mature and solve most of the problems plaguing it.
Bitcoin (BTC) has been trading close to the $3,500 level since Jan. 11. Attempts to move away from this price level have been unsuccessful. The price is trading below both the moving averages, which are trending down. This shows that sellers have the upper hand.
The downtrend will resume if the BTC/USD pair plunges below $3,236.09. A breakdown will dent the sentiment severely and scare away investors who are waiting on the sidelines to enter.
If the bulls push the price above both the moving averages, a rally to $4,000 and above it to $4,255 is probable. We might suggest long positions if the price sustains above the downtrend line. Until then, we remain in a wait-and-watch mode.
Ripple (XRP) is in a weak downtrend. Both the moving averages are sloping down and the RSI is in the negative zone. This shows that the bears are at an advantage.
The immediate support on the downside is in the $0.30550– $0.31 zone. A break below this zone can plunge the XRP/USD pair to the next support at $0.27795. If that support also breaks, the fall can extend to $0.24508.
The cryptocurrency will show signs of a possible recovery if it breaks out and closes (UTC time frame) above the 50-day SMA. We retain our buy suggested in the previous analysis.
Ethereum (ETH) has not been able to bounce off the strong support at $116.30 for the past few days. This suggests a lack of demand at higher levels.
The 20-day EMA is sloping down and the RSI is in the negative zone. This means the path of least resistance in the short term is to the downside. If the ETH/USD pair closes (UTC time frame) below $116.30, it will turn negative and slide to $100. If $100 also fails to offer support, the next target on the downside is $83.
Our bearish view will be invalidated if the bulls bounce off of current levels and push prices above $134.50. We do not find any reliable buy setups at current levels; hence, we are not recommending any trade in it.
Bitcoin Cash (BCH) has been trading in a tight range of $141–$121.30 since Jan. 11. The next move will start when the price escapes from this range.
A breakout and close above $141 can carry the BCH/USD pair to $177.30 and above it to $239. Therefore, traders can look to buy on a close (UTC time frame)