The entry of major players such as investment firm Fidelity and the governments of UAE and Saudi Arabia instills confidence in the crypto market.
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The market data is provided by the HitBTC exchange.
Crypto investors lost about $1.7 billion worth of cryptocurrencies to hackers in 2018. Though prices are down, it has not deterred the criminals. The volume of stolen coins in 2018 was 3.6 times larger than in 2017, according to the report from research company CipherTrace.
Hacks are a major problem in crypto that needs to be solved before the asset class can be seen positively by the regulators and adopted by the mainstream economy.
However, the entry of investment firm Fidelity into the cryptocurrency custody space instills confidence. According to sources cited by Bloomberg, its custody services are likely to be offered starting in March. Initially, the services will be open only to select institutional clients, but the firm plans to expand operations to a larger audience in the future.
The Middle East seems to be warming up to cryptocurrencies. Saudi Arabia and the United Arab Emirates have officially announced the joint development of an interbank digital currency called “Aber.” At first, it will be used only by a limited number of banks.
While the fundamental factors continue to improve, the crypto prices are not showing any signs of a recovery. Let’s look at the critical levels to watch out for.
Bitcoin (BTC) is trying to turn around from $3,355. The bulls are attempting to defend the support at $3,236.09. They will encounter resistance at the 20-day EMA and above that at the 50-day SMA. Upon crossing the moving averages, the next resistance will be at the downtrend line, and above it at $4,255.
Conversely, if the price turns down from either one of the overhead resistances, the BTC/USD pair will again drop to the support at $3,236.09. A break of this level will resume the downtrend and trigger a number of stop losses on the long positions that can result in a quick drop to $3,000, and below that to $2,600.
At present, both moving averages are sloping down, and the RSI is in the negative zone. This suggests that the bears have the upper hand. Therefore, we shall wait for the price to sustain above the downtrend line before turning positive.
Ripple (XRP) has bounced sharply from the critical support of $0.27795, which shows buying at lower levels. It has broken out of the downtrend line and is currently at the 20-day EMA.
If the bulls push the price above the 20-day EMA, the XRP/USD pair can rally to the 50-day SMA. The zone between the 20-day EMA and the 50-day SMA might act as a stiff resistance. A breakout above this resistance zone will be a positive sign.
Therefore, we suggest long positions on a close (UTC time frame) above the 50-day SMA with the stop below $0.275. The first target objective is $0.38239, above which the upward move can stretch to $0.4.
Our bullish view will be negated if the price turns down from the 20-day EMA and plunges below $0.27795.
Ethereum (ETH) bounced back from $103, close to its first support at $100. It will now pull back to $116.3, where it might face resistance.
If the ETH/USD pair turns down from $116.3, it can again fall to $100, and below that to $83. The 20-day EMA is trending down and the RSI in the negative territory which suggests that supply exceeds demand.
If the bulls scale above $116.3, the digital currency will again face selling close to the moving averages. It will turn positive if the price rises above $134.5. We might suggest long positions if the price sustains above the moving averages.
EOS has held the support at $2.1733 for the past two days. The bulls are currently attempting to push the price back into the overhead range.
If they succeed, the EOS/USD pair will move up to $2.5, where it might face resistance from the moving averages. A break out of $2.6 will increase the chances of a rally to $3.05 and above that to $3.2081.
Conversely, if the price reverses direction from the current level and plummets below $2.1733, it can correct to $1.7746, and below that to $1.55. We shall wait for the digital currency to scale above the moving averages before suggesting a trade.
Bitcoin Cash (BCH) is finding some buying close to $105. It can now move up to $121.3, which will act as a roadblock.
The downsloping 20-day EMA will also attract sellers. If the bulls scale above this resistance, the BCH/USD pair can move up to $141.
But if the price turns down from $121, a drop to $100, and below that to $73.5 will be possible. We shall turn positive if we see evidence of strong buying.
Litecoin (LTC) continues to trade in the tight range of $29.349–$33. The bulls have defended the support of the range for the past two days.
We now expect the bulls to push the price to the top of the range at $33. A break out of this resistance will be a positive move that can carry the LTC/USD pair to $36.428, and above it to $40.784.
On the other hand, if the bulls fail to break out of the overhead resistance at $33, the virtual currency will extend its stay in the range. The trend will turn negative on a breakdown of the support zone at $29.349 and $27.701. Therefore, we suggest the traders hold their long positions with the stop loss at $27.5.
While other major cryptocurrencies are struggling to hold up, Tron (TRX) is showing strength. It held the support at the 20-day EMA for the past two days and is now attempting to break out of the overhead resistance at $0.02815521 once again.
If the bulls sustain above $0.02815521, the TRX/USD pair will move up to $0.03128011, and above that to $0.03575668. Above this level, the cryptocurrency will attempt to hit its pattern target of $0.038.
Our bullish view will be invalidated if the price fails to sustain above $0.02815521. A break below the 20-day EMA can plunge the digital currency to $0.02306493, below which a slide to $0.02113440 will be probable. We suggest traders continue to hold their long positions with the stops at $0.023.
Stellar (XLM) has continued to make new yearly lows. Usually, after a breakdown from a critical level, a throwback rally to retest the level is likely to follow. Hence, a move to $0.09285498 cannot be ruled out.
If the XLM/USD pair breaks out and sustains above $0.09285498, the bulls will attempt to scale above the downtrend line, which can result in a trend change.
However, if the price turns down from the breakdown level of $0.09285498, the cryptocurrency can slump to $0.07864971, and further to $0.05795397. We shall watch for a trend reversal before turning positive on the pair.
The bulls have been trying to hold the support at $65.031 for the past two days. If successful, Bitcoin SV (BSV) will attempt to rally to $80.352.
However, with both moving averages sloping down and the RSI in the negative territory, the path of least resistance is to the downside.
The BSV/USD pair can sink to $57, and below that to $38.528 if the price closes (UTC time frame) below $62. We shall wait for the trend to change from down to up before proposing any trades.
Although Cardano (ADA) broke below the support line of the ascending channel on Jan. 29, the bulls are trying to defend the next support at $0.036815.
If the price bounces from the current level, it can move up to the 20-day EMA, which will act as a resistance. The ADA/USD pair will show strength if it sustains above the uptrend line, which will now act as a hurdle.
However, if the price drops below $0.036815, a fall to the yearly low of $0.027237 is probable. The bearish crossover of the moving averages and the RSI in the negative zone indicate that the sellers have the upper hand. We couldn’t find any buy setups at the current levels, so we are not suggesting any long positions yet.
The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.