The first bitcoin in the world was produced 10 years ago on January 3, 2009. Since then, the original cryptocurrency has been on a wild trip. Skeptics still believe that Bitcoin is a fraud, and it can neither become a currency nor act as a means of preserving 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 in 2018 there was a sharp drop in prices, this did not prevent major players from betting on digital currencies. In 2018, Circle processed 10,000 over-the-counter transactions and totaled $ 24 billion. 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, the founder and CEO of the British consulting company deVere group, expects virtual currencies to be positive in 2019 amid an increase in institutional money.
However, what do graphs forecast in the short term? Let's see.
BTC / USD
From December 29, the range of bitcoins was reduced to $ 3,660.84– $ 3,955.6. The 20-day EMA did not change and the RSI dropped below 50, which indicates that the bulls lost momentum in the short term.
A pair of BTC / USD will gain momentum at a breakthrough of $ 4,255, which will complete the head-and-shoulder figure. The goal of this step is 5,500 US dollars, which can reach 5,900 US dollars. Therefore, traders can buy at closing above $ 4,255 with stops at $ 3,550.
If the bears lower the virtual currency below $ 3,550, the cards will drop to $ 3236.09. The downtrend resumes if this support gives way. We expect Bitcoin to take the plunge for the next few days.
ETH / USD
Level $ 167.32 stands strong resistance in the last two days. If the bulls manage to raise Ethereum above this level, it can rise to $ 225, and then rally to $ 249.93.
Conversely, if the ETH / USD pair turns down from current levels, it can 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 track to reach $ 167.32 as long as it stays above the 20-day EMA. Any breakthrough of moving averages will be a negative event that could lead to a retest of $ 83. We recommend that traders wait for a break above $ 167.32 or fall to support levels before opening any long positions.
XRP / USD
Ripple has been trading in a narrow range of $ 0.32615– $ 0.383 since December 27. A break below this range will lead to a drop to $ 0.27795.
On the other hand, a break above $ 0.4 will complete the “head and shoulders” reverse shape with the next target of $ 0.52205. 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 tough resistance.
BCH / USD
Bitcoin Cash was unable to break out of the 50-day SMA, which is a negative sign. If the price drops 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 of $ 355.
Fixed 20-day SMA and RSI near level 50 suggest consolidation in the near term. Therefore, traders should wait for the breakthrough of the 50-day SMA before jumping.
EOS / USD
A break above the 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 at $ 2.1733 will be a negative event. This can lead to 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 $ 4.93.
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 to fall to a minimum of 0.09285498.
The 20-day EMA is gradually falling, and the RSI has also dropped below 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 setup to appear before proposing a trade in a pair.
LTC / USD
Although Litecoin broke out of the 50-day SMA on January 2, it 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 of this could lead to a price reduction of up to $ 23.1. The 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 timeline) above this level to establish long positions. Until then, it’s better to stay away, because smoothing moving averages and RSIs near 50 levels indicate consolidation in the near term.
BSV / USD
Although the wider range in Bitcoin SV is $ 80,352-123.98, since December 26 it has been in a tight range of $ 80.352-110.58.
Usually, when the range becomes small, this 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 can move to $ 123.98. If this level is also crossed, it can grow to $ 167.608. Thus, traders can buy at a close above $ 102.58 with stops at $ 80.
On the other hand, if the digital currency drops below $ 80, it can fall to $ 65.031 and below, to $ 38.528.
TRX / USD
The bulls could not withstand the breakthrough on January 3, but TRON did not give up, which means buying 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 level of $ 0.0246. 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 dollars.
Our bullish view will be invalidated if the price drops below $ 0.018, because after that the cryptocurrency may fall to a 50-day SMA and below this level to $ 0.013.
ADA / USD
The last two days Cardano traded at the neck line. Moving averages completed the bullish crossover. If bulls can scale the neckline for several days, the chart will complete the reverse head-and-shoulders 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 sink below the moving averages. A break of $ 0.036815 will lead to retesting of the lows.