Institutions like Fidelity have not shelved their crypto plans completely, and are moving ahead with trading and custody projects.
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Market data is provided by the HitBTC exchange.
CEO of CoinList Andy Bromberg expects 2019 to be a quiet year for cryptocurrencies in terms of price while crypto firms focus on developing products and services that are useful to the public. A few analysts, however, expect the leading digital currency to fall further. With the January’s negative closing, Bitcoin has now fallen for a record six months in a row.
This has not influenced the top firms to shelve their crypto related projects. Investment firm Fidelity has said that its cryptocurrency trading and custody platform is in the final stages of testing. Currently, these services are being offered to a small group of clients who are helping the firm test and refine the process. Once complete, the services will be offered to the other institutions and large clients.
Hopes for a Bitcoin ETF are back on track as the Chicago Board Options Exchange, along with investment firm VanEck and financial services company SolidX, has re-submitted its application to the United States Securities and Exchange Commission.
Due to the ongoing bear market, many crypto companies are struggling to make ends meet. This has presented an opportunity to the hedge funds that are well capitalized. They have turned venture capitalists and are making the most of this fall, reports Bloomberg. Following these new developments, let’s see if we find any buying opportunities.
Bitcoin (BTC) has been inching higher for the past three days. It is close to the 20-day EMA, which will act as a resistance. The bulls have not been able to rise above the 20-day EMA after falling below it on Jan. 10. The 20-day EMA is sloping down and the RSI is also below 50, which suggests that the bears have an upper hand.
If the price turns down from the moving averages and plummets below $3,236.09, it will trigger a large number of stop losses. The next support on the downside is at $3,000 and below that $2,600.
If the bulls push the price above both the moving averages and the downtrend line, it will signal a probable change in trend. The first sign of bullishness will be after the BTC/USD pair breaks out and sustains above $4,255. We might suggest traders to buy in small quantities on a close above the 50-day SMA. Until then, we remain neutral on the leading cryptocurrency.
We had anticipated a stiff resistance between the 20-day EMA and the 50-day SMA. Ripple (XRP) turned down from just under the 50-day SMA on Jan. 31.
On the downside, the bulls bought the dip to support from the downtrend line. This is a bullish sign. However, the XRP/USD pair needs to scale above the 50-day SMA to signal strength. We retain our buy recommendation given in the previous analysis.
Our bullish view will be invalidated if the bears plummet the cryptocurrency below the critical support of $0.27795.
Ethereum (ETH) has been trading inside a tight range of $103.20 and $116.30 for the past four days. The downsloping 20-day EMA and the RSI in the negative zone suggest an advantage to the bears. The horizontal resistance and the 20-day EMA, both are close to $116.30; hence, we expect this level to act as a major roadblock.
However, if the bulls scale $116.30, the digital currency can move up to $134.50. Above this level, the up move can reach $167.32. As the upside potential is high, we might propose long positions if the price sustains above the 20-day EMA.
On the other hand, if the ETH/USD pair breaks down of $103.20, it can correct to the lows at $83.
EOS re-entered the range on Jan. 30. Currently, the bulls are attempting to defend the bottom of the range. If successful, the cryptocurrency is likely to break out of the moving averages and rally towards the top of the range at $3.2081. Though there is a minor resistance at $3.05, we expect it to be scaled. We might suggest long positions on a close (UTC time frame) above the 50-day SMA.
Contrary to our assumption, if the EOS/USD pair breaks below the range and the critical support at $2.1733, the downtrend will resume. The important support levels to watch on the downside are $1.7746 and below that $1.55.
For the past two days, Bitcoin Cash (BCH) has been struggling to scale above the overhead resistance of $121.30. If successful, it can move up to $141. We shall wait for the price to sustain above $141 before turning positive.
The 20-day EMA is sloping down and the RSI is below 50, which suggests supply exceeds demand. If the BCH/USD pair reverses direction from the current level and plunges below $105, it can dip to $73.5.
Litecoin (LTC) has been consolidating in a tight range of $29.349 to $33 since Jan 11. After bouncing off the bottom of the range, we anticipate an attempt to break out of the overhead resistance once again.
If successful, the LTC/USD pair can rise to $36.428 and above this level to $40.784. Hence, we suggest traders protect their long positions with the stop at $27.5. Nonetheless, if the price turns down from the current levels and breaks below the support zone of $29.349 and $27.701, it can plunge to $23.090.
The rebound from the 20-day EMA was short-lived as Tron (TRX) could not sustain above the overhead resistance at $0.02815521 on Jan. 27.
This attracted selling and dragged the TRX/USD pair back below the 20-day EMA. Currently, the pair is attempting to rise above the 20-day EMA once again. If successful, the bulls will again try to break out of the range.
Conversely, if the bears sink the digital currency below $0.02306493, it can drop to $0.02113440 and below that to $0.0183. Hence, we suggest traders keep the stop loss at $0.023.
Stellar (XLM) pulled back to the breakdown level of $0.09285498 on Jan. 30 but failed to climb above it. This has pushed the price down to new lows once again. The downtrending moving averages and the RSI in the oversold zone show that the path of least resistance is to the downside.
If the XLM/USD pair does not reverse direction quickly and rise above the overhead resistance at $0.09285498, it can plummet to $0.07864971. If this support also breaks, the downtrend can extend to $0.05795397.
On the contrary, if the virtual currency rises and sustains above $0.09285498, the bulls will attempt to breakout of the downtrend line. We might suggest long positions above 50-day SMA. Until then, we suggest traders remain on the sidelines.
The attempt to bounce off the critical support at $65.031 fizzled out after just one day. The price is currently back at the support.
If the bears sink the BSV/USD pair below $65.031, it can slide to $57 and if that support also breaks, the next target on the downside is a retest of the low at $38.528. Both the moving averages are sloping down and the RSI is close to the oversold level, which shows that the bears are in command.
The digital currency will show signs of a recovery if the bulls hold the current level and push the price above $80.352. We do not find any buy setups at current levels.
The short pullback in Cardano (ADA) stalled just below the moving averages on Jan. 31. The failure of the bulls to even seriously challenge the first overhead resistance indicates weakness.
The bulls are currently holding the support at $0.036815. If the ADA/USD pair rebounds sharply from the current levels, it will again try to scale the moving averages.
However, the 20-day EMA is gradually sloping down and the RSI is in the negative zone, which shows that sellers have the upper hand. A break of the $0.036815 level can result in a drop to the next support at $0.027237. We shall wait for the trend to change before suggesting a trade.
Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.