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Jan 20 2021

Price analysis 1/20: BTC, ETH, DOT, XRP, ADA, LTC, BCH, LINK, XLM, BNB

When an asset is in an overbought condition and traders are sitting on large profits, even minor negative news and events could trigger profit-booking. This seems to have happened following Janet Yellen’s adverse comments on cryptocurrencies during a virtual hearing with the U.S. Senate Finance Committee.

In the same meeting, Yellen also told Congress to “act big” in order to support the U.S. economy. Another round of stimulus would probably further weaken the U.S. dollar and drive investors into assets that are considered as a store of value. This means Yellen’s comments may have inadvertently boosted the sentiment surrounding gold and Bitcoin (BTC).

*Daily cryptocurrency market performance. Source:* *Coin360*

As the fundamental factors supporting the current bull run are still intact, the institutional investors who had missed out on the rally at lower levels may use the current dip to build positions.

Glassnode data shows that large investors have been aggressively adding Bitcoin to their portfolios and the number of wallets holding over 1,000 Bitcoin has risen to a new all-time high. Since the start of 2021, 164 new wallets with over 1,000 Bitcoin have been created, indicating that whales are bullish despite the current BTC price correction.

Let’s study the charts of the top-10 cryptocurrencies to spot the critical support levels where buyers may start cherry-picking.

BTC/USD

Bitcoin has broken below the symmetrical triangle pattern but the bulls are currently attempting to defend the 20-day exponential moving average ($34,626). In an uptrend, traders buy the dip to the 20-day EMA as it offers a low-risk entry opportunity and a bounce off it reiterates the strength in the trend.

The 20-day EMA is flattening out and the relative strength index (RSI) has gradually dropped from the deeply overbought territory to the midpoint, which suggests a balance between supply and demand.

If the BTC/USD pair sustains below the 20-day EMA, it could drop to the 38.2% Fibonacci retracement level at $29,688.10. The bulls are likely to defend this support aggressively. If they succeed, this level may act as the support of the range while $40,000 could act as the resistance.

The positive view could be negated if the bears sink the price below the 50-day simple moving average ($27,596). Such a move could open the possibility of a fall to the 61.8% Fibonacci retracement level at $22,106.73.

ETH/USD

Ether (ETH) rallied to a new all-time high on Jan. 19, indicating that the bulls are in command. The upsloping moving averages and the RSI near the overbought territory suggest the path of least resistance is to the upside.

Usually, after every breakout from a resistance, the price returns to retest the level. The same has happened in the ETH/USD pair where the bulls are trying to flip $1,300 into support. If they succeed, this level will act as a new floor.

The long tail on today’s candlestick suggests traders are buying on dips below $1,300. If they manage to close the price above $1,300, the pair may attempt to resume the uptrend. If the bulls push the price above $1,438.318, the pair could rally to $1,675.

Contrary to this assumption, if the pair sinks and sustains below $1,300, the next drop is likely to be the 20-day EMA ($1,129). A bounce off this support will suggest the sentiment remains bullish, but if the bears sink the pair below the 20-day EMA a short-term top may be in place.

DOT/USD

After the sharp rally of the past few days, Polkadot (DOT) has entered a minor correction. The altcoin had today dipped to the 38.2% Fibonacci retracement level at $14.7259, which is acting as a strong support.

The long tail on today’s candlestick shows that traders are not waiting for a deeper correction to buy as they anticipate higher levels in the future. If the bulls can push the price above $19.40, the uptrend could resume with the next target objective at $24 and then $30.

Contrary to this assumption, if the bears sink the price below $14.7259, the selling may intensify and the pair could drop to the 50% retracement level at $13.2821 and then to the 20-day EMA ($12.32).

If the pair rebounds off the 20-day EMA, it will suggest the uptrend remains intact but if this support cracks, the decline could extend to $11.8383. The deeper the correction, the longer it is likely to take for the uptrend to resume.

XRP/USD

XRP rose above the 20-day EMA ($0.297) on Jan. 19 but the bulls could not sustain the higher levels, indicating traders are offloading their positions on every minor attempt to rally.

The price action of the past few days has formed a descending triangle pattern. If the bears sink the price below the $0.25 support, the XRP/USD pair could drop to the critical support at $0.169. A break below this level could resume the downtrend with the next target objective at $0.10.

On the other hand, if the bulls defend the $0.25 support and push the price above the downtrend line, the pair may rise to $0.385 and stay range-bound between these two levels for a few more days. A new uptrend could begin on a breakout and close above $0.385.

ADA/USD

Cardano (ADA) has pulled back from the stiff overhead resistance at $0.40, which shows short-term traders may be booking profits. The shallow correction and the long tail on the day’s candlestick show the bulls are attempting to flip the previous resistance at $0.34 into support.

If they succeed, the bulls will make one more attempt to thrust the ADA/USD pair above the $0.40 resistance and resume the uptrend. If they manage to do that, the next stop could be the psychological resistance at $0.50.

The upsloping moving averages suggest the trend remains in favor of the bulls but the negative divergence on the RSI indicates the momentum may be weakening. If the price sustains below $0.34, a drop to the 20-day EMA ($0.30) is likely.

A strong rebound off this support will indicate the uptrend remains intact but a break below it will suggest the possibility of a deeper correction to $0.26.

LTC/USD

The bulls pushed Litecoin (LTC) above the 61.8% Fibonacci retracement level at $157.6904 on Jan. 19 but could not sustain the higher levels due to the bear onslaught, as seen from the long wick on the day’s candlestick.

If the bears can sustain the price below the 20-day EMA ($145), the LTC/USD pair could drop to $130 and then to $120. This is an important support to watch out for because a break below it could signal the bears are back in the game.

The flat 20-day EMA and the RSI close to the midpoint suggests a balance between supply and demand. This could keep the pair range-bound between $130 and $160. On the upside, a breakout and close above $160 may resume the uptrend.

BCH/USD

Bitcoin Cash (BCH) broke above the $539 resistance on Jan. 19, but the long wick on the day’s candlestick suggests the bears had other plans as they sold aggressively, trapping the bulls who may have purchased the breakout.

The BCH/USD pair dipped to the uptrend line but the long tail on today’s candlestick suggests the bulls aggressively defended this support. If the bulls can push the price above $539, a rally to $630 is possible.

On the contrary, if the pair breaks below the uptrend line, it will suggest the bears have overpowered the bulls. This will signal a possible trend change and the pair could then drop to the next critical support at $370.

LINK/USD

Chainlink (LINK) is currently correcting the sharp up-move of the past few days. Aggressive profit-booking by traders had pulled the price below $20.1111, but the long tail on today’s candlestick suggests strong buying at lower levels.

Both upsloping moving averages and the RSI in the positive zone suggest bulls have the upper hand. If the LINK/USD pair rebounds off the current levels, the bulls will try to push the price above $23.767 and resume the uptrend. The next level to watch on the upside is $27 and then $30.

Contrary to this assumption, if the bears sustain the price below $20.1111, the pair may drop to $17.7777, which is just above the 20-day EMA ($17.58). If the pair rebounds off this level and rises above $20.1111, the bulls will try to resume the uptrend.

This positive view will invalidate if the selling breaks the 20-day EMA support. Such a move will indicate the bulls are not buying the dips anymore, signaling a change in sentiment.

XLM/USD

Stellar Lumens (XLM) continues to trade inside the $0.26 to $0.325 range. The bulls tried to push the price above the range on Jan. 19 but failed, which shows the bears are active at higher levels.

The sellers will now try to sink the XLM/USD pair below the support of the range, but they are likely to encounter strong buying from the bulls. The upsloping moving averages and the RSI in the positive zone suggest the bulls are unlikely to give up easily.

A strong rebound off the 20-day EMA ($0.263) could extend the consolidation by a few more days. Contrary to this assumption, if the bears sink the price below the $0.26 support, the selling could intensify and that may pull the pair down to the 50-day SMA ($0.201).

BNB/USD

Binance Coin (BNB) tried to resume the uptrend on Jan. 18 and 19 but the bulls could not sustain the higher levels. Aggressive profit-booking on Jan. 19 started a correction that has reached the 20-day EMA ($40.99).

If the bears can sink and sustain the price below the 20-day EMA, the BNB/USD pair may drop to the support line of the ascending broadening wedge pattern. The bulls will attempt to defend this support and if they succeed, the pair may extend its stay inside the pattern.

Conversely, if the bears sink the price below the support line, it will complete the bearish setup, which has a target objective at $26.7273. But the pair is unlikely to plunge to the target level in a hurry because the bulls could offer strong support at $35.69.

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 HitBTC exchange.

Price analysis 1/20: BTC, ETH, DOT, XRP, ADA, LTC, BCH, LINK, XLM, BNB

Source

Jan 17 2021

Top 5 cryptocurrencies to watch this week: BTC, LINK, UNI, XTZ, ATOM

Bitcoin (BTC) price has yet to recapture the $40,000 level and traders who were expecting a quick resumption of the uptrend may have been caught off guard by the recent pullback. This could have led to the liquidation of about $500 million worth of cryptocurrency futures positions in the past 24 hours.

Over leveraged positions provide the necessary ammunition during the uptrend, but they become a liability when the trend reaches an inflection point.

When the markets turn down, leveraged long positions quickly turn into a loss, resulting in margin calls from brokers. When the margin requirements are not met, the brokers dump the positions at market price, leading to a sharp plunge.

Therefore, data indicating a reduction in leveraged Bitcoin positions in the past few days is a positive sign as it decreases the risk of cascading liquidati.

*Crypto market data daily view. Source:* *Coin360*

While a sharp fall is usually avoided when the markets are not overleveraged, sustained buying is needed to maintain the higher levels. If that does not happen, the price continues to correct gradually.

Grayscale Investments has been one of the major buyers in the past few months but they now have a new competitor, Osprey Funds, which began quoting in the over-the-counter market on Jan. 15 under the ticker symbol OBTC. The firm is offering a competitive management fee structure compared to Grayscale.

This is a positive sign for crypto markets because if both these firms attract institutional investors, the buying may resume and Bitcoin can reverse course to pursue new highs.

While Bitcoin remains stuck in a range, select altcoins are running hard. Let’s study the charts of the top-5 cryptocurrencies that may be favored by the bulls in the next few days.

BTC/USD

Bitcoin is currently consolidating in an uptrend. The price action of the past few days has formed a symmetrical triangle, which generally acts as a continuation pattern. The long tail on today’s candlestick shows the bulls are buying the dips to the 20-day exponential moving average ($34,241).

The upsloping moving averages and the relative strength index (RSI) in the positive territory suggest that bulls are in control. If the buyers can push the price above the triangle, the next leg of the uptrend could begin.

The first stop could be the current all-time high at $41,959.63, but if the bulls can propel the price above it, the BTC/USD pair may rally towards the pattern target at $50,000.

Contrary to this assumption, if the rebound fails to find buyers at higher levels, the bears may try to sink the price below the triangle. If they succeed, the pair may drop to the 38.2% Fibonacci retracement level at $29,688.10.

This level may attract buyers but if the bulls fail to push the price above the 20-day EMA, then the correction could deepen to the 50-day simple moving average ($26,581).

*BTC/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows that the bulls have purchased the drop to the support line of the symmetrical triangle but they may face resistance at the moving averages that are sloping down.

If the price turns down from the moving averages, the bears will try to sink the price below the triangle. If they succeed, a deeper correction is likely.

On the contrary, if the bulls can push the price above the moving averages, the pair may rise to the resistance line of the symmetrical triangle. A breakout of this resistance may start the uptrend.

However, if the price turns down from the resistance line of the triangle, the pair may trade inside the triangle for a few more days.

LINK/USD

Chainlink (LINK) broke above the $20.1111 resistance on Jan. 15 and followed it up with another up-move on Jan. 16, hitting a new all-time high at $22.96. But the long wick on the Jan. 16 candlestick suggests profit-booking at higher levels.

The price rebounded off the $20.1111 breakout level today, suggesting that the bulls have flipped this level to support. If the bulls can now push the price above $23, the LINK/USD pair could rally to $27 and then to $30.

The upsloping 20-day EMA ($16.25) and the RSI near the overbought zone suggest bulls are in control.

Contrary to this assumption, if the price turns down and breaks below $20.1111, the next stop is likely to be $17.7777. This is an important support because a break below it will indicate a possible change in trend.

*LINK/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows the breakout above $20.1111 had pushed the RSI deep into the overbought territory, which may have attracted profit-booking from short-term traders.

However, the positive sign is that the bulls aggressively purchased the dip to the 20-EMA. If the bulls can sustain the price above $21.5709, the pair may retest $22.96. A break above this resistance may resume the uptrend. The upsloping moving averages and the RSI in the positive zone suggest bulls have the upper hand.

This bullish view will invalidate if the bears sink and sustain the price below the 20-EMA. Such a move could pull the price down to $17.7777, indicating the momentum has weakened.

UNI/USD

Uniswap (UNI) is currently in an uptrend but is facing selling above the $9 mark as seen from the long wick on Jan. 16 and today’s candlestick. If the bulls do not give up much ground, it will suggest traders are not rushing to the exit after the recent rally and are buying on dips.

The upsloping 20-day EMA ($6.15) and the RSI in the overbought territory suggest bulls have the upper hand. If the UNI/USD pair stays above the 38.2% Fibonacci retracement level at $7.4725, the bulls will try to resume the uptrend.

If they can push the price above $9.3776, the rally could extend to $12.4597 and then to $15.

Contrary to this assumption, if the bears sink the price below $7.4725, the pair may drop to the 20-day EMA. Usually, a deep correction suggests that the momentum has weakened and that may result in a few days of range-bound action.

*UNI/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows the pair is currently consolidating after the recent sharp up-move. The bulls are buying the dip to the $8 support and the bears are selling above $9.

If the bulls can push the price above the $9 to $9.3776 overhead resistance, the uptrend could resume.

On the other hand, if the bears sink the price below the 20-EMA, the decline could extend to the 50-SMA. Such a move could keep the pair range-bound for a few days.

XTZ/USD

Tezos (XTZ) had been stuck inside the $2.85 to $1.85 range for the past few weeks. The bulls are currently attempting to push the price above the range and start a new uptrend.

However, the long wick on the Jan. 16 candlestick shows that the bulls are finding it difficult to sustain the price above the range. Today, the long wick and the tail on the candlestick indicates indecision among the bulls and the bears.

If the bulls can sustain the price above $2.85, the possibility of the start of a new uptrend increase. The upsloping 20-day EMA ($2.48) and the RSI above 66, suggest the path of least resistance is to the upside.

The first target objective on the upside is $3.90 and then $4.4936. This bullish view will negate if the XTZ/USD pair drops and breaks below the 20-day EMA.

*XTZ/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows the bulls had pushed the price above $2.85 but they could not build upon the strength, which led to a correction. However, the bulls aggressively purchased the dip to the 20-EMA and are now trying to drive the price above $3.1838. If they succeed, the uptrend could resume.

On the contrary, if the price turns down from the current levels or the overhead resistance and drops below the 20-EMA, it could correct to the 50-SMA. A break below this support could signal that the recent breakout above $2.85 was a bull trap.

ATOM/USD

Cosmos (ATOM) rose above the stiff resistance at $8.877 on Jan. 16 and made a new all-time high at $9.60. Whenever the price hits a new all-time high, it is a sign that bulls are in command.

However, the bears have not given up yet as they have pulled the price back below $8.877 and are attempting to trap the aggressive bulls. The bullish momentum could weaken if the bears sink the price below the 61.8% Fibonacci retracement level at $7.093.

Conversely, if the bulls can defend the zone between the 38.2% retracement at $8.05 and the 50% retracement at $7.572, it will suggest strong demand at lower levels.

If the price turns up from this support zone, the bulls will try to resume the uptrend. A break above $9.60 could push the ATOM/USD pair to $12.10 and then to $13.974.

*ATOM/USDT 4-hour chart. Source:* *TradingView*

Both moving averages are sloping up and the RSI is in positive territory, indicating that bulls have the advantage. The pair has bounced off the 20-EMA and the bulls will now try to push the price above the $8.877 overhead resistance.

If they succeed, the pair could rise to $9.60 and a break above it will signal resumption of the uptrend. Conversely, if the bears sink the price below the 20-EMA, it will suggest that the momentum has weakened and a drop to $7.50 and then to the 50-SMA is possible.

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.

Top 5 cryptocurrencies to watch this week: BTC, LINK, UNI, XTZ, ATOM

Source

Jan 01 2021

Price analysis 1/1: BTC, ETH, XRP, LTC, DOT, BCH, ADA, BNB, LINK, BSV

Bitcoin (BTC) rallied from an intraday low at $17,573.29 on Dec. 11 to an intraday high at $29,310.19 on Dec. 31, a 66.78% rally in a short span. This shows strong demand from traders at every higher level.

Institutional crypto investment giant Grayscale bought 72,950 Bitcoin in December, which was 159.49% more than the 28,112 Bitcoin mined during that period, according to data from Coin98 Analytics.

It is not only the institutions buying — a strong bull run also attracts speculators and momentum traders who try to piggyback on the up-move. This can be seen from the surge in Bitcoin’s transaction volume in December 2020, according to on-chain analytics resource Digital Assets Data.

However, at some level, buyers will stop chasing prices higher, and that could cause the rally to turn down. When it does, the speculators and momentum traders may rush to the exit, and the buyers are likely to wait for lower levels to purchase again. This scenario could result in a sharp pullback. Hence, traders should employ suitable risk management strategies.

In a strong bull run, traders may watch the resistance levels for signs of a possible turnaround, but when the levels are scaled with ease, it shows that the trend remains strong. Let’s study the charts of the top 10 cryptocurrencies to identify the critical resistance levels on the upside.

BTC/USD

Bitcoin (BTC) is in a strong uptrend, and traders are buying every intraday dip without waiting for a deeper correction. The long-legged Doji candlestick pattern on Dec. 31 suggests that bears tried to start a correction but the bulls bought the dip aggressively.

However, the strong up-move of the past few days has pushed the relative strength index (RSI) deep into the overbought territory. This suggests the BTC/USD pair could enter a minor consolidation or correction near the $30,000 mark.

Contrary to this assumption, if the bulls drive the price above $30,000, the pair could continue its rally and rise to $37,000. But with every leg up, the risk to the downside increases.

If the price turns down from $30,000, the pair could drop to the 20-day exponential moving average ($24,842). A strong rebound off this level will suggest that the uptrend remains intact, but a break below it could pull the pair down to the 50-day simple moving average ($20,614).

ETH/USD

Ether (ETH) has been facing resistance near the $750 level for the past few days, but the positive sign is that the bulls have not given up much ground. This suggests that traders are not booking profits aggressively, as they expect the uptrend to resume.

If the bulls can push and sustain the price above $750, the ETH/USD pair may rally to $800 where the bears may again try to stall the uptrend. The rising moving averages and the RSI near the overbought zone suggest that bulls have the upper hand.

However, if the pair dips below $717, the correction could deepen to the 20-day EMA ($663). If the price rebounds off this support, it will suggest that the sentiment remains bullish and traders are buying on dips.

On the contrary, a break below the 20-day EMA will suggest that traders are not buying the dips and are booking profits aggressively. That could signal the start of a deeper correction.

XRP/USD

XRP formed an inside day candlestick pattern on Dec. 30 and 31, which shows indecision among the bulls and bears. The uncertainty resolved to the upside today, and the bulls have started a relief rally.

In a strong downtrend, traders use rallies to establish short positions or close their long positions. The downsloping 20-day EMA and the RSI near the overbought territory suggest that bears are in command.

Therefore, the current attempt to move up may face strong resistance at the 20-day EMA ($0.357). If the price turns down from this level, the bears will try to resume the downtrend. If they can sink the price below $0.172536, the XRP/USD pair could fall to $0.10.

This negative view will be invalidated if the bears push the price above the 20-day EMA. Such a move will suggest that selling has exhausted, and a few days of range-bound action could follow.

LTC/USD

Litecoin (LTC) has held above $124.1278 for the past few days, which suggests that the bulls are attempting to flip this level to support. The upsloping moving averages and the RSI in the positive zone suggest that the bulls are in control.

If the bulls can propel the price above the $140 resistance, the LTC/USD pair may resume its uptrend. The bears may again try to stall the rally at the psychological resistance at $150, but if this level is scaled, the up-move could reach $160.

Contrary to this assumption, if the bears sink and sustain the price below $124.1278, the pair may drop to the 20-day EMA ($113.79).

If the price rebounds off this level, the bulls will again try to resume the uptrend. However, a break below the 20-day EMA will open up the possibilities for a deeper correction to the 50-day SMA ($91.96).

DOT/USD

Polkadot (DOT) resumed its up-move after a one-day minor correction on Dec. 30. The 28.145% rally on Dec. 31 shows that the altcoin is backed by strong momentum.

However, the uptrend has pushed the RSI into the overbought territory, and the bears are currently trying to stall the up-move in the $9.51 to $10 overhead resistance zone.

If the DOT/USD pair again witnesses a minor correction and turns up from the 38.2% Fibonacci retracement level at $7.7614, it will suggest that traders are not closing their positions in a hurry and are buying on every minor dip. This may push the pair to $11.

Conversely, if the bears pull the price below $7.7614, a retest of the breakout level at $6.8619 is possible.

BCH/USD

Bitcoin Cash (BCH) turned down from the $370 overhead resistance on Dec. 28 and slipped below the $353 support on Dec. 31. The bulls are currently attempting to sustain the price above the 20-day EMA ($323).

If the price turns up from the current levels, the bulls will make one more attempt to drive the price above $370. The upsloping moving averages and the RSI in the positive zone suggest that bulls have the upper hand.

A breakout and close above $370 could resume the up-move, and the BCH/USD pair could reach $430 and then $500. This positive view will be invalidated and the pair may remain stuck in the range if the bears sink the price below the 20-day EMA.

ADA/USD

Cardano’s ADA has been holding above the $0.175 support for the past two days, which suggests that the bulls have been purchasing the dips to this level. However, the failure to resume the up-move indicates that demand dries up at higher levels.

The range has contracted for the past two days, and soon, this will be followed by a range expansion. If the range resolves to the upside and the bulls push the price above $0.1966315, the ADA/USD pair could rally to $0.22 and then to $0.235.

The rising moving averages and the RSI in the positive zone suggest that the path of least resistance is to the upside. This positive view will be invalidated if the bears sink and sustain the price below the 20-day EMA ($0.165). If that happens, it will suggest that the recent breakout was a bull trap.

BNB/USD

Binance Coin (BNB) did not even correct to the 38.2% Fibonacci retracement level of the latest leg of the rally, and it turned up from $36.5157 on Dec. 31. This suggests that traders aggressively bought the dip.

If the bulls can push the price above the $40 resistance, the BNB/USD pair could resume its rally and reach $45 and then $50. The rising moving averages and the RSI near the overbought territory indicate bulls are in control.

Contrary to this assumption, if the price again turns down from $40, the pair may remain range-bound between $35.69 and $40 for a few days. The trend could change if the bears sink the price below the 20-day EMA ($34).

LINK/USD

Chainlink’s LINK is trading inside a descending channel. The failure of the bears to sink and sustain the price below the $11.29 support has attracted buyers today who are attempting to push the price above the 20-day EMA ($12.13).

If they succeed, the LINK/USD pair could rise to the resistance line of the channel. A break above the channel and the $13.28 resistance could start a new uptrend that could reach $16.39.

However, if the price turns down from the current levels or the resistance line of the channel, then the bears will again try to break the $11.29 support. If they manage to do that, the pair could drop to $10 and then to the support line of the channel near $9.60.

BSV/USD

The bulls are struggling to push Bitcoin SV (BSV) above the 20-day EMA ($167), and the bears are not able to sustain the price below $160. This suggests a balance between supply and demand, but this tight range action may not continue for long.

If the bulls push the price above the moving averages, the BSV/USD pair could rally to $181 where the bears are likely to mount a stiff resistance. If the price turns down from this level, the range-bound action is likely to extend for a few more days.

On the other hand, if the pair dips below $160, the pair could drop to $146 where the buyers may step in. A strong bounce could keep the price inside the angle for some more time. The indicators are not showing a clear advantage either to the bulls or the bears.

Market data is provided by HitBTC exchange.

Price analysis 1/1: BTC, ETH, XRP, LTC, DOT, BCH, ADA, BNB, LINK, BSV

Source

Dec 28 2020

Price analysis 12/28: BTC, ETH, XRP, LTC, BCH, DOT, ADA, BNB, LINK, XLM

Several central banks have resorted to unprecedented monetary expansion and aggressive rate cuts to support their respective economies badgered by the coronavirus pandemic. Record liquidity has resulted in sharp rallies in the S&P 500, gold, and Bitcoin (BTC), which suggests that investors are plowing money into assets of their choice.

While gold is way below its all-time high set in August, both the S&P 500 and Bitcoin are near their all-time high.

The last five trading days of the year and the first two of the next year have historically been bullish for the S&P 500, dubbed as the “Santa Rally.” It will be interesting to see whether Bitcoin continues its Santa rally into 2021 with the arrival of institutional investors.

Another interesting thing to note is that Bitcoin has rallied from a low at $10,377.10 in October to a high at $28,419.94 in December, a 173.87% rally in three months. Although the sentiment is bullish and the institutional inflows are accelerating, every bull market witnesses strong corrections and Bitcoin is unlikely to be an exception.

Traders should protect their paper profits and not get carried away with greed because corrections after vertical rallies can be ruthless. Let’s study the charts of the top-10 cryptocurrencies to determine the overhead levels that may act as a strong resistance that can trigger a correction.

BTC/USD

Bitcoin formed a Doji candlestick pattern on Dec. 27 with a long wick, which suggests profit booking above the $27,000 level. The bulls are again struggling to sustain the price above $27,000 today.

If the bears sink the price below $25,819.69, the BTC/USD pair could drop to the immediate support at $24,302.50 and then to the 20-day exponential moving average at $22,951.

A strong bounce off this support will suggest that the uptrend remains intact and the bulls are buying on dips. If that happens, the bulls will attempt to resume the uptrend.

However, if the bears sink the price below the 20-day EMA, it will suggest the formation of a short-term top. The correction could then deepen to the 50-day simple moving average at $19,577.

Contrary to this assumption, if the bulls push and sustain the price above $28,419.94, the pair could rally to $30,000, which is likely to act as a stiff resistance.

ETH/USD

Ether (ETH) rebounded off the 50-day SMA ($566) on Dec. 23, which suggests that the bulls are accumulating on dips. The buyers again pushed the price back above $622.807 on Dec. 25, indicating that the correction could be over.

The ETH/USD pair picked up momentum on Dec. 27 and cleared the $676.325 overhead resistance. This suggests that the uptrend has resumed. The next target objective on the upside is $800.

The upsloping moving averages and the relative strength index (RSI) close to the overbought territory suggest that bulls are in command. This positive view will invalidate if the pair turns down and plummets below the $622.807 support.

XRP/USD

XRP is in a downtrend. The altcoin broke below the critical support at $0.435 on Dec. 23 and this intensified the selling, resulting in a sharp fall to $0.2132.

The downsloping 20-day EMA ($0.426) and the RSI in the negative territory suggest that bears have the upper hand.

When the sentiment is bearish, minor rallies are sold into and that is what happened on Dec. 25. The XRP/USD pair turned down from $0.384998, just above the 38.2% Fibonacci retracement level of the most recent leg of the decline.

However, the bulls are currently trying to keep the pair above the $0.25 support. If they succeed, the pair may remain range-bound between $0.25 and $0.38 for a few more days. The first sign of strength will be a break above the 20-day EMA.

LTC/USD

Litecoin (LTC) broke above a flag pattern and the overhead resistance at $124.1278 on Dec. 25, which indicated the resumption of the uptrend. The breakout of this setup has a target objective of $160.

However, the bears are not willing to throw in the towel as they are currently attempting to stall the up-move at the $140 overhead resistance. If they can sink and sustain the price below 124.1278, a drop to the 20-day EMA ($107) may be on the cards.

On the other hand, if the bulls can defend the $124.1278 level, it will suggest that this level has flipped to support. That could enhance the prospects of a break above the $140 to $145 overhead resistance zone.

The rising moving averages and the RSI near the overbought territory suggest that the path of least resistance is to the upside.

BCH/USD

The bulls are currently trying to propel Bitcoin Cash (BCH) above the $370 overhead resistance. If they succeed, it will be a huge positive because during the previous two attempts, the price had quickly reversed direction from this level.

The upsloping moving averages and the RSI above 64 suggest that bulls are in command. If they can drive the price above $$370 and sustain the breakout, the BCH/USD pair could rise to $409 and then to $430.

On the contrary, if the bears again defend the $370 resistance and the price turns down sharply, it could keep the pair range-bound between $370 and $255 for a few more days.

DOT/USD

Polkadot (DOT) had been trading in a range between $3.53 and $5.60 for the past few weeks. The bulls have pushed the price above the $5.60 to $6.0857 overhead resistance zone today.

If the bulls can sustain the price above $6.0857, it will suggest the start of a new uptrend that could retest $6.8619 and then rally to $7.67. The gradually upsloping moving averages and the RSI above 68 suggest bulls have the upper hand.

The bears are likely to defend the $6.8619 level aggressively but if the bulls do not allow the price to dip below $6, it will suggest that the uptrend remains intact. This bullish view will be invalidated if the DOT/USD pair re-enters $5.60.

ADA/USD

Cardano (ADA) rebounded off the $0.13 support on Dec. 24 and the bulls have been sustaining the price above the 20-day EMA ($0.154) since then. This is a positive sign as it prepares a launchpad to thrust the price above the $0.175 to $0.1826315 overhead resistance zone.

The RSI has risen into positive territory and the 20-day EMA has started to turn up gradually. This suggests that bulls are attempting to gain the upper hand.

If the bulls can push the price above the overhead resistance zone, the ADA/USD pair could resume the uptrend and rally to $0.22 and then to $0.235.

Contrary to this assumption, if the pair again turns down from $0.175, it could extend its stay inside the range for a few more days.

BNB/USD

The bulls are currently attempting to propel Binance Coin (BNB) above the $35.69 overhead resistance. If they succeed, the altcoin could resume the uptrend and rally to the all-time high at $39.5941.

The bears are likely to mount a stiff resistance at the all-time high but the upsloping moving averages and the RSI in the positive territory suggest that bulls have the upper hand.

If the bulls can push the price above $39.5941, the BNB/USD pair could pick up momentum and start its journey towards $50.

This bullish view will be invalidated if the price turns down from the current levels and plummets below the 50-day SMA ($30). Such a move will suggest profit-booking at higher levels.

LINK/USD

Chainlink (LINK) plummeted to $8.05 on Dec. 23 but rebounded strongly from the lower levels as seen from the long tail on the day’s candlestick. The bulls again bought the dips on Dec. 24, indicating strong demand at lower levels.

The failure of the bears to sustain the LINK/USD pair below $11.29 attracted buying from the bulls who pushed the price to $13.2448 on Dec. 27. However, the bears are in no mood to relent as they sold close to $13.28 as seen from the long wick on the candlestick.

Both moving averages have flattened out and the RSI is just below the midpoint, which suggests a balance between supply and demand.

The bulls may gain an upper hand if they push and sustain the price above the downtrend line. Conversely, a break below $10 will suggest advantage to the bears.

XLM/USD

The bulls are currently attempting to sustain Stellar Lumens (XLM) above the $0.14 support. However, any rise from the current levels could face selling at the downsloping 20-day EMA ($0.159) and then at $0.17.

If the price turns down from the overhead resistance, it increases the likelihood of a break below $0.14. The next support on the downside is at $0.11 and then $0.08.

Conversely, if the bulls can push the price above $0.17, the XLM/USD pair may move up to the downtrend line. The sentiment is likely to remain negative as long as the price remains inside the descending triangle pattern.

A break above the downtrend line of the triangle will invalidate the bearish setup and that could result in a rally to $0.231655.

Market data is provided by HitBTC exchange.

Price analysis 12/28: BTC, ETH, XRP, LTC, BCH, DOT, ADA, BNB, LINK, XLM

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Dec 23 2020

South Korean Digital Asset Management Platform Haru Hits $100M Total Transaction Volume Milestone

Haru, a South Korea-based digital asset management platform and a service brand name of Block Crafters, announced on Wednesday its total transaction volume has reached the $100 million milestone within 15 months of its official launch. Haru also revealed that its user number has exceeded 10,000. Founded in 2019, Haru offers products not for institutions, but for ‘all of us’. Haru’s products are open for all. Investments start at just $10 and there are no separate investor certification requirements.

“With Haru’s products, our professional traders use an algorithmic futures market trading and hedging strategy to increase earnings. Users do not need to study algorithms or frequently open the exchange app to check prices. If you’re an investor who wants to earn steady returns while just going about your daily life, then Haru’s service is worth considering.”

Haru further revealed that if a user deposits Bitcoin (BTC), Ethereum, (ETH), Tether (USDT) or Terra (KRT), the platform will pay out interest.

“If you want to freely select the deposit period, choose Haru Earn and if you want higher interest, pick Haru Earn Plus which has a fixed deposit period. For aggressive investors looking for additional returns, cryptocurrency fund Haru Invest offers an attractive option.”

Meanwhile, Haru noted its Haru Invest (USDT) is a product for those seeking returns while holding the stable coin Tether. Due to Haru Invest being a stable coin, Haru claims that the risk exposure to losing the principle is comparatively low.

“The Haru Invest USDT product (Surf with Volatility) targets a substantial annual profit rate. Additionally, Haru Invest only charges a performance fee of 15% of total profit if the annualized earning rate is at least 15%. The minimum lock-up period is one month, which can be extended if the user wants.”

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