The world's first bitcoin was mined 10 years ago on January 3, 2009. Since then, the original cryptocurrency has been on a wild ride. Skeptics still believe that Bitcoin is a scam and can neither become a currency nor act as a store of value.
Nevertheless, convinced supporters still argue that one day Bitcoin will be used for everyday transactions and will also be used as a digital equivalent of gold. Overstock.com, a large retail company, announced that it will pay business taxes using bitcoins.
Although a sharp fall in prices occurred in 2018, this did not prevent major players from betting on digital currencies. In 2018, Circle processed 10 000 over-the-counter transactions and amounted to 24 billion US dollars. This shows that institutional money is gradually, albeit slowly, entering the space.
The GTI Vera Convergence Divergence indicator points to higher levels for Bitcoin if buying pressure continues. Nigel Green, founder and CEO of the British consulting company deVere group, expects virtual currencies to be positive in 2019, amid increasing institutional money inflows.
However, what do graphs forecast in the short term? Let's see.
BTC / USD
Since December 29, the bitcoin range has been reduced to $ 3660,84– $ 3955,6. The 20-day EMA did not change and the RSI fell below the 50 level, which indicates that the bulls lost momentum in the short term.
The BTC/USD pair will gain momentum on a breakout of $4255, ending the head and shoulders pattern. The goal of such a move is $5500, which could be as high as $5900. Traders can therefore buy on the close above $4255 with $3550 stops.
If the bears lower the virtual currency below 3550 dollars, the cards will drop to 3236,09 dollars. A downtrend resumes if this support gives way. We expect Bitcoin to take the plunge for the next few days.
ETH / USD
The $ 167,32 level is a strong resistance in the last two days. If the bulls manage to raise Ethereum above this level, it can rise to 225 dollars, and then rally to 249,93 dollars.
Conversely, if the ETH / USD pair turns down from current levels, it may drop to $ 136,12. We expect strong support at this level, given that the 20-day EMA is also located nearby.
The pair remains on the path to the $ 167,32 mark as long as it stays above the 20-day EMA. Any breakthrough of moving averages will be a negative event that could lead to retesting in the 83 dollar. We recommend that traders wait for a break above $ 167,32 or fall to support levels before opening any long positions.
XRP / USD
Ripple trades in a narrow range of $ 0,32615– $ 0,383 from December 27. A break below this range will drop to $ 0,27795.
On the other hand, a break above the 0,4 dollar will complete the reverse head and shoulders pattern with the next goal of the 0,52205 dollar. Although the resistance line of the downward channel can act as a small obstacle, we expect it to be crossed. Therefore, we maintain the purchase recommendation provided in the previous analysis.
If the XRP / USD pair breaks out of the $ 0,565– $ 0,625 zone, it will rise to $ 0,7644, which is likely to become a stiff resistance.
BCH / USD
Bitcoin Cash was unable to break out of the 50-day SMA, which is a negative sign. If the price falls below $ 141, it may drop to the bottom of the downward channel. The breakdown of the channel will resume the downward trend.
A pair of BCH / USD will gain momentum during a breakout and closure (in UTC) above the 50-day SMA. Such a move will turn the model into a bull flag with a target 355 dollars.
A fixed 20-day SMA and RSI near the 50 level suggest consolidation in the near term. Therefore, traders should wait for the 50-day SMA to break through before jumping.
EOS / USD
The break above 50-day SMA was short lived. EOS again returned to the 20-day EMA. If this support fails, the slide can be extended to $ 2.1733.
Any break in $ 2.1733 will be a negative event. This may result in a drop to $ 1,55. Below this level, the EOS / USD pair will resume a downtrend.
On the other hand, $ 3,2081 is an important resistance, above which growth to $ 3,8723 is likely, followed by growth to $ 4,493.
XLM / USD
Bulls are trying to break out of the 20-day EMA, which is a negative sign. If Stellar falls below 0,11024826, it is likely that 0,09285498 will fall to a minimum.
The 20-day EMA is gradually decreasing, and the RSI has also dropped below the 50 levels. This shows that bears have an advantage in the short term. The XLM / USD pair will strengthen if it comes out of $ 0,15. We will wait for the trend reversal setting to appear before proposing a trade in a pair.
LTC / USD
Although Litecoin broke out of 50-day SMA 2 January, he could not continue to strengthen. Currently, bears are trying to fall below moving averages.
The $ 27,701– $ 29,349 area is a critical support area on the downside. Any breakthrough may result in a price reduction to $ 23,1. A downtrend resumes if this level also breaks.
A pair of LTC / USD will gain momentum if it breaks through the $ 36,428 mark. We offer traders to wait for the close (UTC time scale) above this level to establish long positions. Until then, it is better to stay away, because smoothing moving averages and RSI near 50 levels indicate consolidation in the near term.
BSV / USD
Although the wider range in Bitcoin SV is 80,352 – 123,98 dollars, since December 26 it is in the hard range 80,352 – 102,58 dollars.
Usually, when the range becomes small, it indicates an impending breakout or breakout. It is difficult to predict how the schedule will move. Therefore, it is better to wait for a break before buying.
If the BSV / USD pair breaks out of $ 102,58, it may move to $ 123,98. If this level is also crossed, it can grow to $ 167.608. Thus, traders can buy at close above $ 102,58 with stops at $ 80.
On the other hand, if a digital currency goes below 80 dollars, it can fall to 65,031 dollars and lower to 38,528 dollars.
TRX / USD
The bulls were unable to withstand the January breakthrough for 3, but TRON did not give up, indicating a purchase at lower levels. The 20-day EMA continues to grow, which is a bullish sign.
A break above the downtrend line could lead the TRX / USD pair to the next $ 0.0246 level. If this level is scaled, it can rise to $ 0,02815521. Traders who have opened long positions based on our previous offer can hold them with stops at the level of 0,018 dollar.
Our bullish view will be invalidated if the price drops below the 0,018 dollars, because after that the cryptocurrency may fall to the 50-day SMA and below this level to the 0,013 dollars.
ADA / USD
The last two days Cardano is trading at the neckline. Moving averages completed the bullish crossover. If the bulls can scale the neckline for several days, the graph will complete the “head-and-shoulders” reverse pattern with a target of $ 0,066.
Traders can buy when closing above the neckline, but if the price does not grow quickly from $ 0,060105, the foot should be increased.
If the ADA / USD pair does not come out of the neck line soon, it will most likely turn around and go down below the moving averages. A breakout of $ 0,036815 will retest the lows.