Price analysis in the cryptomarkets is getting somewhat trickier with each passing day, particularly with a series of external factors like regulatory actions impacting marketing sentiments.
Though early investors in Bitcoin have benefited from the ‘buy and hold’ approach, later entrants have seen the wild price fluctuations in recent weeks as an opportunity to add to their Bitcoin holdings. Many charts indicate that over the past few years, the whales have consistently increased their holdings in Bitcoin. Typically, an average trader uses these price swings to buy at the highs and sell at the lows. There have been many good Samaritans in the cryptoworld, advising people to safeguard themselves from this pitfall. As at mid February, though being aggressive with long positions may not be desirable, is there a short-term bottom emerging now? On that note, here is a break-down of how some of the top altcoins and Bitcoin are positioned at mid February, 2018.
BTC/USD – Price analysis
Many value investors have given up on their strategy over the last 15 years amid concerns that value investing no longer worked. However, some made small adjustments to their strategy but remained value investors to the core. Now all of the value investors who held fast to their investment philosophy are being rewarded as value Read More
It was expected that Bitcoin would go below its recent lows below its current trendline. However, bulls had a better grip and the bears failed to hammer the price below $8,000. The downtrend line may face resistance and if it manages to claw back above the 20 days EMA, the bulls may succeed in taking the price to the $8,600-9,400 range. Once that is achieved, one should expect a quick rally to $12,000 though it could once again be subjected to resistance at 50 days SMA. Ideally, traders should wait for a price breakout above the $9,500 mark for buying. $7,800 should be the stop loss and the target price should be above $12,000.
Potential of BTC/USD pair failing to get past $9,500
If the BTC/USD pair cannot get past the %9,500 mark, and heads south again, the traders are better of waiting and resisting the temptation to add at the lower levels since any dip below $7,800 could potentially take the price further down to $7,000. Both bearish as well as bullish scenarios become relevant in a price analysis since traders should know how to react in both cases.
ETH/USD Price analysis
Ethereum is also looking set to stage an up move after experiencing a dip on 10th and 11th February. The 20 day EMA may bring resistance to the ETH/USD pair at $911 and if we consider the 50 day SMA, the resistance would be $980. If the prices cross these levels the resistance line can move to the $1,050 level. Strong support is seen at $775 on the downside. Trading may not be desirable since the risk/reward ratio is not healthy.
BCH/USD Price analysis
In the past few days Bitcoin Cash has been moving in a narrow range and this may be resolved on a day when the price makes a significant upward or downward move. But, if such a move pulls the coin further down, this pair can be avoided for now. Conversely, if the downtrend and 20 day EMA experience a breakout, it might signal a short term bottom and that may be a trading opportunity. Long position at $1,400 with a stop loss at $1,100 is considered a smart move with a target price of $1,925-2,000.
Ripple was expected to hit a short-term bottom and a rally above its 20 day EMA was awaited before taking long positions. Today (14 February) it has managed to get past the $1 mark and If the momentum is sustained, it could rally to the 50 day SMA of $1.5 and once that is crossed , one could expect the price to get past $1.74 . Stop loss can be placed at $0.86 which is a tad below its earlier support. In the current downward swing, Ripple has remained an underperformer and therefore trading should ideally be limited to 50% of the normal position size.
XLM/USD price analysis
Stellar price has remained range-bound over the past couple of days. At $0.41, the coin is experiencing strong resistance in making an upward move. If the bulls succeed breaking the descending channel, a rally to the $0.63 level can be expected. Long trades are not seen till such time the XLM/USD pair is back inside the channel. A continuing downward move could take this coin to $0.3 and it could move to its support line on the channel. Before initiating any long positions, traders may wait for a fresh break out.
LTC/USD price analysis
Litecoin was a candidate for long positions subject to the breakout sustaining above $175. On 14 February, LTC appears to have finally managed to rise above the 20 days EMA, rising to $215 and then dipping to $207. This could be the right time to take long positions since the coin has managed to stay above $175 for over 10 hours today. $200 is another critical resistance for this crypto and any downward trend should be closely watched to close your positions or tighten your stops. A break out from the current level could take the coin to $307.
ADA/BTC price analysis
Cardano is continuing its journey inside a descending triangle. This represents a bearish trend and if the support breaks down the coin could head towards $0.00004070 completing the pattern. Though the breakdown target is significantly lower, it is expected that the ADA/BTC pair will see buying support at the 0.0000246 levels. When a bearish pattern fails to sustain, it is indicative of a bullish sign. Therefore, if this crypto moves above its 20 days EMA, the downward trend line on the descending channel as well as the 50 days EMA, the positions may need to be reversed to go long. Staying away from this counter is desirable till then.
Long positions above the $120 levels were recommended in the past with $100 as stop loss. The price is showing resistance at $115 even on 14 February and therefore, traders should wait till a sustained break out above $120 is seen for at least 4 hours. On 11 February, the coin experienced strong support at $93.53 on the downward move. This pair is stuck between $93.5 and $120 and a breakout from this range can propel the currency towards the descending triangle on the downtrend line. Traders can use any breakout above $121 provided the price can sustain for 4 hours or more. The stop loss initially should be $93 and trailed higher if the bulls cannot get past the triangle on the downtrend line. However, if NEO moves below the $93.53 level, it could turn negative.
EOS/USD price analysis
At $9 short-term trade with a target of $10-$12 was an opportunity. But, the crypto has not managed to break above the $10 mark even on 14 February ($9.50 as we write this). The 20 days EMA is on a downward trend and resistance is seen at $10 . Support on the downside is$7.65-$6.65
Apart from watching price movements of individual coins, it would be a great idea to keep an eye out for regulatory actions from around the globe.