Bitcoin, Ripple, Ethereum, EOS, Bitcoin Cash, Litecoin, Tron, Stellar, Binance Coin, Bitcoin SV: Price Analysis, Feb. 6
Investors with open positions are experiencing huge losses, and the ones sitting on the sidelines are scared to enter.
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.
The article has been updated to reflect a mistake in the name of the Sheikh involved in the crypto funding, who is Sheikh Saeed bin Ahmed Al Maktoum, not Sheikh Ahmed bin Al Maktoum.
Cryptocurrencies are struggling to move up, even after having been in a bear market for over a year and falling anywhere between 85 and 99 percent from their individual all-time-highs.
Investors with open positions are experiencing huge losses, and the ones sitting on the sidelines are scared to enter, as the market continues to make new lows on a regular basis. This has resulted in a drop in trading volumes across crypto exchanges.
While many retail traders are turning away from cryptocurrencies, the same cannot be said about institutional investors. The Private Office of Sheikh Saeed bin Ahmed Al Maktoum, a Dubai royal, is helping cryptocurrency fund manager Invao raise funds in the United Arab Emirates (UAE).
Still, the big players have been slow to enter the nascent market of crypto. None of the institutions have truly committed yet.
With no retail investors and no large-scale institutional demand, the markets are reeling and are unable to absorb even a small amount of selling pressure. Let’s see if the prices are likely to turn around from the current levels or are they getting ready to plunge even deeper.
Although Bitcoin (BTC) has been trading in a small range, the sentiment remains bearish. The price continues to trade below both moving averages, and the RSI has been in the negative territory since Jan. 10. The failure of the bulls to scale above the 20-day EMA shows weakness.
The bears will now try to resume the downtrend by breaking down of the yearly low at $3,236.09. Repeated failure of the BTC/USD pair to stage a decent recovery deters the traders who are waiting to buy upon the confirmation of a bottom. The critical levels to watch on the downside are $3,000, which is more of a psychological support, and below it $2,600.
Conversely, if the cryptocurrency rebounds sharply from the current levels, or from $3,236.09, it can move up to the moving averages and above them to the downtrend line. We shall wait for a trend reversal before recommending a trade.
Ripple (XRP) has been unable to find any buying support. It is likely to drop to $0.27795 for the third time since mid-December of last year. The 20-day EMA is sloping down, and the RSI is in the negative zone, which shows that the sellers have the upper hand. On a break below $0.27795, the fall can stretch to the yearly low of $0.24508.
Our bearish view will be invalidated if the bulls rebound sharply from $0.27795 and carry the XRP/USD pair above both moving averages. Such a move will signal strength and we might suggest long positions on a close above the 50-day SMA. Until then, we remain neutral-to-bearish on the pair.
Ethereum (ETH) has dropped to the bottom of the range. The downslo