In December 2017, market participants were looking forward to the total market capitalization cryptocurrencies will reach $ 1 trillion. And in December 2018, the total market capitalization is struggling to maintain the $ 100 billion mark.
This shows a complete change in sentiment over the last year: last year it was the fear of missing out, and this year it was the fear of losing all the money invested in cryptocurrencies. We believe that the decline has reached a panic state, which will sooner or later end with the formation of a bottom.
Therefore, investors who believe in the long-term potential of an asset class should be willing to invest as soon as the recession ends. The risk of decline from current levels is limited, while growth potential is attractive.
EOS / USD pair
EOS block producers (EOS) operate with negative margins. Many of them will be in trouble if the price does not recover or if no changes are made to the existing reward system.
Hackers also successfully attack decentralized applications (DApps) based on the EOS blockchain. Since July, as a result of their hacking, about $ 1 million has been lost.
Charles Hoskinson of Cardano believes that the US SEC is likely to oppose ICO EOS in the amount of $ 4 billion. So, what is the future of the coin on schedule according to its charts? Let's find this out.
The main trend for the EOS/USD pair is down. The price has been making new yearly lows since dropping below $4,493.
The bulls tried to form a base from mid-August to mid-November, but to no avail. The goal for the break was the $ 2,1561 level. However, the bears easily broke through this level and lowered the digital currency to a minimum of $ 1,55. Even at these levels, buyers are in no hurry to intervene and provide support.
This suggests that the decline may continue to the next support at $ 1,2 and below to $ 1, which is the main psychological support. RSI is close to oversold territory, which indicates oversold.
Possible rollback to the $ 3,8723- $ 4,493 zone. However, you should only open longs after the virtual currency signals a trend reversal. Until then it's best to stay away.
BNB / USD pair
Binance, one of the top cryptocurrency exchanges in the world in terms of trading volume, launched educational content to provide the public with “objective” information about cryptocurrencies and the blockchain. The development of course content is carried out by the Binance Academy.
Another branch, Binance Labs, released its first batch of blockchain projects from an incubation program that provided projects with funding and other necessary resources. The exchange has added six new pairs with a steyblecoin tied to USD, USD Coin (USDC) to its recently aggregated steakcoin market.
The Binance Coin (BNB / USD) pair is relatively strong as it hasn't fallen too far from the drop that occurred earlier in the year to a low of $ 5,4666 that appeared on February 6. The coin is currently falling inside the downtrend.
If the bears drop a pair below support at $ 4,1723848, a decline can lead the coin to support at $ 2,5.
The trend is down, and the RSI is in the oversold zone, which means the advantage of bears. Consequently, it can be expected that the bulls will try to rise above the resistance at $ 5,4666. If successful, the current fall can be called a bear trap, and the pullback can spread to the resistance line of the channel just above $ 7,5. Traders should wait for the formation of a reliable buy setting before opening any positions for the pair.
TRX / USD pair
TRON (TRX) launched its TRC20 exchange this week. The liquidity of the TRON network is expected to increase with the launch of the exchange. Within 24 hours, the number of transactions in DApps increased by 48% compared to the previous week. 24-hour trading volume has increased 151% over the past week. Let's see how the schedule has changed due to this.
The bulls have been trying to find the bottom in the last few months. The TRX / USD pair consolidated between $ 0,0183 and $ 0., 281551 for about three months before November fell to 19. An attempt to return to the range failed, and the bears are trying to continue the downward trend. If there is a breakdown of current levels, the goal will be the $ 0,00844479 level. If the decline does not stop at this level, then the next support will be the $ 0,00554133 level.
However, if the bulls protect $ 0,01089965 and raise the price above $ 0,0183, there will be signs of a trend change. Until then, every rollback will be met by a wave of sales, which means it is better to wait and see what happens next.
LTC / USD pair
Litecoin (LTC) network, Lightning Network, is ready to launch on one of the largest payment gateways CoinGate. Litecoin creator Charlie Lee broke the news in a recent tweet: “Even Litecoin will soon have over 1000 merchants accepting LN payments! Thanks @CoinGatecom!”
Lee sold all of his Litecoin in December 2017, citing a conflict of interest. He then hinted that the Litecoin price could drop to $ 20. With the price falling to this level, will the coin find the bottom or will it continue to fall? Let's find this out.
The LTC / USD pair is in a strong downtrend since it reached its peak at $ 370 last December. Although there was an attempt to form a base at the $ 47,246 level, the bears broke through its November 13 and resumed the downward trend. There was another attempt to defend support at the $ 29,349 level, but it was not retained even for a week.
Currently, the downward trend has resumed, and the next support for a further fall will be the $ 19- $ 21 zone. If it is also not held, the fall can continue to $ 15. The RSI has reached the level of oversold, which was last observed at the beginning of 2015.
If the digital currency rebounds from current levels and rises above $ 29,349, this will mean that markets have rejected lower levels. In this case, it is possible to roll back to $ 47,246. However, while the bears are stronger, traders should wait until the trend reverses before opening any longs for the pair.
BTC / USD pair
Some believe that after a devastating bear market, bitcoin (BTC) will meet its end. However, Jeremy Allaire, co-founder of Circle, believes Bitcoin will be "much more" than it is now in the next three years.
Thomas Lee from Fundstrat believes that the fair value of Bitcoin ranges from $ 13800 to $ 14800, which is 315% higher than current levels. During bear markets, prices can fall to crazy levels, which provides an excellent buying opportunity for brave traders who risk going against the trend.
The trend in the BTC / USD pair is clearly downward. Since the breakdown of critical support on $ 5900, the bulls have failed to protect intermediate support levels, which shows the strength of the bears.
The sale pushed the RSI into the oversold zone, which was last observed at the beginning of 2015. Immediate support is at $ 2974, from where we expect a strong rebound.
Conversely, if the virtual currency does not recover, the downtrend may extend to $ 1752. With each fall, the pair approaches the bottom, but it is difficult to predict where the fall will end.
Since the fall was sharp, the next pullback is likely to be just as sharp. Thus, traders can expect to retest the $ 5900 breakout level after the trend reversal. Until then, traders with shorts will use every small pullback.