Price Analysis 09/08: BTC, ETH, XRP, BCH, LTC, BNB, EOS, BSV, XMR, XLM
Bitcoin is at a critical level. A breakdown might hurt sentiment across the crypto universe.
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.
Vertical moves are unsustainable in the long run. Hence, it is always better if there are consolidations in between because those levels act as a floor during corrections. Tim Draper believes that the consolidation might delay Bitcoin’s eventual rally, but he remains steadfast in his target of $250,000.
Nicholas Gregory, CEO of blockchain firm CommerceBlock, has warned that a no-deal Brexit will “create turmoil and volatility across two major fiat currencies,” which will seal Bitcoin’s place in the global economy as the vulnerability of fiat currencies becomes apparent.
Bitcoin has outperformed all other asset classes during the ongoing trade war between the United States and China. Grayscale Investments did a study, which shows that Bitcoin is uniquely poised to act as a safe haven due to its value potential and its spending characteristics. Additionally, unlike other safe haven assets, it has the potential to grow as it is a new technology. Therefore, Grayscale believes that the leading cryptocurrency is a good addition to long-term investment portfolios.
Though Bitcoin (BTC) has sustained above the downtrend line for the past three days, it has failed to pick up momentum. This shows hesitation among traders close to $12,000. If the price fails to break out of $12,304.37 and resume its up-move, bears will try to sink it back below the moving averages in the next few days.
If the BTC/USD pair breaks down of the moving averages, it can correct to $9,727.55 once again. Therefore, we suggest traders raise the stop loss on the long position to breakeven.
Conversely, if bulls defend the support at the downtrend line, we anticipate another attempt to resume the up-move. A breakout of $12,304.37 can propel the price to $13,973.50, with minor resistance at $13,156.96. Both moving averages are sloping up and the RSI is in positive territory, which shows that bulls still hold the advantage. Hence, we are not proposing to book partial profits at current levels.
After failing to break out of the overhead resistance at $235.70, Ether (ETH) has declined to the uptrend line. It has not broken below this line since February of this year. Therefore, a breakdown will be a negative sign and will signal the end of the uptrend.
The next support on the downside is at $192.945. If this fails to hold, the ETH/USD pair might plummet to $164 and below it to $150. Conversely, if the support at $192.945 holds, the pair might remain range-bound for a few days. It will gain strength on a breakout and close (UTC time) above $235.70. Until then, it remains at risk of collapsing to lower levels. As the trend is inconclusive, our buy recommendation given in an earlier analysis stands canceled.
XRP has broken down of the immediate support at $0.30. Therefore, we have withdrawn the buy recommendation given in an earlier analysis. The cryptocurrency can now drop to the critical support of $0.27795. This level has held on five previous occasions since mid-December last year. Hence, we anticipate the price to bounce off it once again.
The strength of the bounce will give us a clue as to whether the support will hold or crack. If the rebound off $0.27795 is weak, it will indicate a lack of buying interest among bulls and will increase the probability of a breakdown. The XRP/USD pair will start a new downtrend below $0.27795 that can drag it to $0.19.
Conversely, if the price bounces off sharply from $0.27795, bulls will try to carry it above the 20-day EMA. We expect range-bound trading for a few days if the price sustains above the 20-day EMA.
Bitcoin Cash (BCH) has broken down of the uptrend line of the ascending triangle, thus invalidating the bullish pattern. It can now drop to the support line of the ascending channel. The traders can keep the stop loss on the long position at $300. We are not recommending to close the position at current levels because sometimes the breakdown quickly reverses and proves to be a bear trap.
The BCH/USD pair will signal strength if it quickly reverses direction from current levels and rises above the overhead resistance of $345.80. Until then, it remains at risk of turning lower. The pair has formed a large head-and-shoulders pattern that will compete on a breakdown of the neckline of the