Price Analysis 02/08: BTC, ETH, XRP, LTC, BCH, BNB, EOS, BSV, XLM, ADA
Bitcoin is looking strong. Can it start a rally? What are the target levels to watch out for? Let’s analyze the charts.
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.
Fundstrat Global Advisors co-founder Tom Lee expects Bitcoin to reach $20,000 this year. He believes that increased liquidity due to the Fed’s rate cut will drive money into risk assets that will help the leading cryptocurrency. Bitcoin will also work as a hedge due to its low correlation to other asset classes.
Echoing a similar sentiment, a report by research firm Delphi Digital pointed out that the major central banks have turned dovish, which is bullish for Bitcoin. The report also predicts that Bitcoin’s market capitalization might outgrow that of gold in the future.
Anthony Pompliano, co-founder of asset manager firm Morgan Creek Digital Assets, has gone a step ahead and said that the central banks, who are now buying gold to diversify their assets will buy Bitcoin due to its “non-correlated, asymmetric upside profile.”
Global Macro Investors and Real Vision Group founder Raoul Pal believes that rewards far outweigh the risks for Bitcoin in the long-term. According to him, Bitcoin can hit $8 trillion in market capitalization in the future compared to its current market capitalization of about $187 billion. He does not expect any other asset class to provide such astronomical returns.
Bitcoin (BTC) scaled above 20-day EMA on August 01 for the first time such July 14. This is a positive sign but it might face some resistance at 50-day SMA, above which it can rise to the downtrend line. We anticipate strong selling at the downtrend line, but if bulls break above it, a retest of $13,973.50 is possible. Therefore, traders can take positions as suggested in an earlier analysis.
If bulls struggle to propel the BTC/USD pair above the downtrend line, partial profits can be booked and the stop loss on remaining positions can be raised to breakeven. The traders should turn cautious if the price fails to breakout of the downtrend line because there is an outside chance of formation of a bearish descending triangle pattern. The pattern will complete on a break below $9080.
Though Ether (ETH) is attempting a bounce, it lacks momentum. This shows weak demand at higher levels. The bulls might face resistance at 20-day EMA and above it at $235.70. If this level is crossed, the pair might pick up momentum and rally to $320.840, with minor resistance at 50-day SMA, which is likely to be crossed. Therefore, traders can initiate long position as recommended in our earlier analysis.
Our bullish view will be invalidated if the ETH/USD pair turns around from the 20-day EMA or $235.70 and plummets below the uptrend line. A break below $192.945 will resume the down move. The next target on the downside is at $149.935.
The 20-day EMA is flattening out and RSI is gradually climbing towards the center, which shows the possibility of a range formation. This ambiguity is likely to be resolved within the next few days.
XRP has once again retreated from 20-day EMA, which is a bearish sign. This show