Bitcoin, Ripple, Ethereum, Stellar, EOS, Litecoin, Cardano, Monero, TRON, IOTA: Price Analysis, Nov. 19
Following the increase in volatility and a renewed downtrend in markets, some analysts have projected abysmally low prices for Bitcoin.
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Market data is provided by the HitBTC exchange.
After a period of three days, the crypto markets have resumed their downtrend. Total market capitalization of the crypto universe has dipped below $170 billion, which is a new yearly low.
Following the increase in volatility and the renewed downtrend, some analysts have projected abysmally low prices for Bitcoin. When the sentiment is negative, such forecasts can scare new investors away, and also force the weaker hands to dump their holdings.
In its short trading history, is this the first time that Bitcoin has fallen about 74 percent from its peak? No! According to Charlie Bilello, director of research at Pension Partners, the digital currency has twice plunged by 94 percent from its highs and again risen from the ashes. The third worst fall was 85 percent from its then highs. This shows that the asset class has experienced massive falls before. It is just that this time, Bitcoin is more in the limelight than on previous occasions.
During bear markets and periods of panic, the fundamentals take a back seat and the markets are driven only by sentiment. Though such periods offer an opportunity to load up for the long term, it is better to wait for the decline to end before buying because prices can go abysmally low during panic selling.
What are the lower levels that can attract buyers? Let’s find out.
After a three-day break, the bears are back with a vengeance. Bitcoin has plummeted below the support of $5,450 with ease. Failure of the bulls to pullback to the $5,900 level shows selling pressure on every small rise.
The 20-day EMA and the 50-day SMA have turned down and the RSI is deep in the oversold territory. This shows that the sellers continue to pound the BTC/USD pair without even waiting for a pullback.
If the bulls fail to provide support at the important psychological level of $5000, the fall can extend to $4700 and below that to $4100. However, the reading of about 15 on the RSI shows that the selling has been overdone and a pullback can happen anytime. The strength of the pullback will provide an insight on whether the decline has ended or if there is more to go.
When the price is correcting, it is difficult to predict where it will stop. Hence, we shall watch each support level closely. We will wait for the decline to end and a new buy setup to form before attempting a buy again. Until then, it is best to remain on the sidelines and avoid catching a falling knife.
Ripple continues to be one of the stronger cryptocurrencies, as it is trading well above its recent lows.
The moving averages are flat and the RSI is close to the midpoint. This points to a range bound action between $0.40–$0.565.
A breakdown of the uptrend line and $0.40 will be negative and can result in a fall to $0.37185 and below that to $0.26913. If the bulls breakout of $0.565, the XRP/USD pair can move up to $0.625 and above that to $0.7644