Bitcoin, Ripple, Ethereum, Bitcoin Cash, Stellar, EOS, Litecoin, Cardano, Monero, TRON: Price Analysis, December 1
The bears seem to be unwilling to wait for the higher levels to sell Bitcoin, as the market experiences a pullback.
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.
After the first signs of recovery, the opinion is divided on the current pullback in the market. Some say that it is only a dead cat bounce, while others believe that it is the start of a base building process that will result in a new uptrend. Michael Bucella of the crypto-focused investment firm BlockTower Capital said to CNBC that the smartest money has started investing.
Nonetheless, Paul Donovan, Global Chief Economist at UBS, has said the digital currencies can never be currencies and are “fatally flawed.” After the recent fall, many are questioning the longevity of cryptocurrencies. The past rallies and sharp plunges show that the nascent asset class swings between periods of extreme optimism and pessimism.
For the non-believers, this is not the space to be in. However, for the investors who believe in the long-term story of cryptocurrencies, Ric Edelman, founder and executive chairman of Edelman Financial Services, believes that it is a good time to start buying Bitcoin.
Will we or anyone pick the exact bottom? No! A bottom can only be identified in the hindsight. Therefore, the traders can scale in the position, gradually building a portfolio. Let’s see which virtual currencies are showing buy setups.
Contrary to our opinion, the pullback in Bitcoin did not even reach the 38.2 percent Fibonacci retracement level of $4,712.89. It turned down from $4,471.1 on November 29. This shows that the bears are unwilling to wait for higher levels to sell.
There is a minor support at the small uptrend line, below which a retest of the lows at $3,620.26 is possible. A breakdown of the year-to-date lows is likely to attract further selling, dragging the BTC/USD pair to $3,000 levels. This is an important level that should hold: a break of this can result in a plunge to $2,410.
However, we expect the $3,500-$3,000 zone to hold. Hence, traders who went long on our recommendation can hold their positions. We shall close the position if we find that the bears are sustaining below $3,500.
If the price bounces from the current levels, it can move up to $4,712.89 and $5,050.4. We can add more positions as the virtual currency rises northwards.
Ripple triggered our suggested buy level on Nov. 28, but it could not rise above $0.4. Currently, the price has turned down and might retest the intraday lows of Nov. 25.
The down trending 20-day EMA and the RSI below 40 levels will continue to attract sellers. A break below the support line of the descending channel can result in a drop to $0.24508. However, if the support holds, we anticipate a move back to the top of the range. Traders who have bought positions on our recommendation can hold with a stop loss of $0.3. The positions can be closed if the XRP/USD pair sustains below $0.3.
The rebound in Ethereum fizzled out at $127.87. It continues to be in a downtrend but for the past seven days it has been trading inside the range $130.5-$102.2.
A breakout of the range might face a minor resistance at the 20-day EMA, but we expect it to be crossed. The ETH/USD pair will face a stiff resistance at $167.32 and if this level is crossed, it will be at the 50-day SMA. We suggest traders wait for a trend reversal to be signaled before attempting long positions in it.