2017 was a year of great range of days and superlative returns in cryptocurrencies. The year 2018 is a crushing bear market and a sharp drop in volatility. Bitcoin volatility point is at its lowest year – to-date and most altcoins have followed suit. While flat markets are despised by speculative traders, it is a good time to make a long-term investment.
A small period of trading range with low volatility will be followed by an expansion of the range and an increase in volatility. However, we believe that the increase in current levels will face a series of obstacles on the way up. A large number of private investors stuck in higher prices will recover when the price of Bitcoin begins a new uptrend. Mike Novogratz, CEO of the crypto-investment company Galaxy Digital Capital Management, does not see Bitcoin climbing above $ 9,000 in 2018.
So, has Bitcoin touched bottom or can it keep falling?
Fundstrat managing partner and research director, Tom Lee, asked the institutions and Twitter users this question. The results of the survey were interesting. The majority of Wall Street’s 25 institutions believed that the price of Bitcoin had already bottomed out, while most of the 9,500 respondents on Twitter believe that it is likely to continue to fall.
57% of the institutions have a minimum target of $ 15,000 in Bitcoin by the end of 2019, which is 127% more than the current price of the main digital currency.
BTC / USD
The bears did not take advantage of the fall below the trend line and Bitcoin has rebounded above the 20-day EMA. The important level to observe in the upper part is the downward trend line of the descending triangle and $ 6,832. If the bulls climb above these two levels, it will invalidate the bearish pattern, which is a bullish signal.
The first level to follow in the upside is the intraday high of September 4 with $ 7,413.46. If this level is exceeded, the BTC / USD pair could rise to the next level of $ 8,500. The bassists could launch a strong defense of this level.
On the downside, a break below the support area of $ 6,341- $ 6,435 can sink the digital currency in the critical area of $ 6,075.04- $ 5,900. A break of this level will trigger a series of loss stops that can lead to a sharp fall. Therefore, traders holding long positions should maintain a stop loss of $ 5,900.
ETH / USD
Ethereum is in the middle of the $ 200- $ 250 range. During the last days, the intraday range has been reduced, which suggests a lack of buying and selling interest.
The first sign of the uptrend will be a break and the close (UTC time) above $ 250. Such a move will attract buyers and can bring the ETH / USD pair to the next level of $ 322.57.
On the other hand, if the level of the $ 200 were to be broken, the virtual currency could register minimums of September 12 at $ 167.32, below which the bearish trend will resume.
We did not find any reliable purchase settings at the current level; therefore, we are not recommending an operation on it.
XRP / USD
During the last two days, Ripple has been trading between 0.50- $ 0.55. A break of $ 0.55 could take it to the resistance of $ 0.625. A break of this level will resume the uptrend.
A break below $ 0.50 will test the 20 day EMA support. Any break of this support will retest the lower part of the range at $ 0.425. If it breaks from this level, it is likely to fall to $ 0.37512.
As the price is still above the moving averages, which tend to rise, we suggest keeping long positions in the XRP / USD pair with a stop loss of $ 0.42.
BCH / USD
Bitcoin Cash has remained above the 20-day EMA for the past two days, but the bulls have not been able to raise prices.
A break of $ 600 could indicate the beginning of a new uptrend, while a break of $ 400 could resume the bearish trend.
Given that the BCH / USD pair remains above the 20-day EMA, we suggest that operators maintain their long position with stops at $ 400.
EOS / USD
EOS has formed a symmetrical triangle at the bottom. To a large extent it has been stuck between $ 5.30 and $ 6 since September 26. Attempts to break the 50-day SMA have seen the purchase at lower levels, which is a positive sign.
A break of the symmetric triangle has a pattern goal of $ 8. However, we believe that the EOS / USDpair will face a strong resistance of $ 6.80. Traders can hold their long positions with a stop loss of $ 4.90. A close below the triangle trend line could cause prices to fall again to the $ 4.49 level.
XLM / USD
Stellar has maintained the EMA for 20 days during the last two days but has not been able to close (UTC time) above $ 0.24987525.
A breach of the EMA to 20 days may result in a 50-day SMA drop and below this to a critical support of $ 0.21489857.
The pair XLM / USD will turn bullish if it breaks and closes (UTC time frame) above the downward trend line of the falling triangle. As the bulls have managed to defend the 20-day EMA, we suggest that traders keep their long positions with stops at $ 0.21.
LTC / USD
Litecoin is currently operating near the center of the range of $ 49,466- $ 69,279. Moving averages have remained stable for the past nine days and the RSI is close to the midpoint.
The LTC / USD pair will turn positive in a break and close above $ 70, and will turn negative in a break and close below $ 49.
Operating within a range can be volatile and can come to a halt on both sides. Short-term traders can buy a small amount in a rebound from the bottom of the range, while positional traders should wait for a break above $ 70 to buy.
ADA / USD
Cardano broke below the 20-day EMA on October 2, but bears have not been able to push prices to the lower support at $ 0.071355. Flat moving averages and the RSI close to level 50 show the balance between bulls and bears.
If the ADA / USD pair breaks the $ 0.94256, this will indicate that the bulls have the advantage, while a fall below $ 0.071355 will suggest that the bears have an advantage.
Between these two levels, the digital currency could be consolidated for a few days. We will wait for a purchase configuration to be formed before proposing any operation on it.
XMR / USD
Monero has been trading near the $ 115 level since September 29. This shows a balance between buyers and sellers.
Both moving averages are flat and the RSI is near the level of 50, so it is estimated that the downtrend will continue for a few days.
The XMR / USD pair could rise to $ 140 if it stays above $ 121. On the downside, a break below $ 107.80 could result in a fall to $ 103 and $ 96. Traders can hold their long positions with a stop loss of $ 100.
IOTA / USD
IOTA has extended its stay within the range of $ 0.6170- $ 0.5000. Both moving averages are flat and the RSI is close to the midpoint, suggesting the continuation of the action limited by the range.
The IOTA / USD pair could attract buyers if it shoots up and stays above the range. The first objective of this break is $ 0.8152. If the bass players break below the range, the digital currency can retry the minimum of $ 0.4037.
Traders should wait for the price to close above $ 0.50 before starting any long position.