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The market data is provided by the HitBTC exchange.
The pullback in cryptocurrencies could not sustain as fears of a clampdown by the regulators again sent them crashing down. The latest news came from the Japan Financial Services Agency, as it issued a warning for Binance, the largest cryptocurrency exchange by volume, for operating in Japan without a license.
Binance, which was founded in Hong Kong said that it is “in conversation” with the FSA to seek a license. Additionally, it is examining the possibility of opening an office in Malta, according to the founder Zhao Changpeng.
Such obstacles are to be expected in any new asset class, more so, if it has a reputation of being preferred by tax hoarders and money launderers. However, for every avenue that closes, another new one opens. Cryptocurrencies are here to stay and grow in value in the future.
So, let’s see if we find any buying opportunities.
We had suggested traders buying 50 percent of the desired allocation if Bitcoin dips to $8,800. The levels were reached today, March 23, and the trade is active. The initial stop loss is $7,600, which should be trailed higher once the price breaks out of $9,300.
For the past two days, the bulls have managed to keep prices above the descending channel, which is a positive sign.
The BTC/USD pair will gain momentum once it sustains above the 50-day SMA and $10,000. Once these two levels are crossed, a rally to $12,172 is likely.
On the other hand, if prices fall into the descending channel and break below the March 18 lows of $7,715, a retest of the February 06 lows of $6,075.04 is possible.
On March 19, though the intraday high was $590.11, the closing (UTC) was at $558.78. Our proposed long positions were not filled because Ethereum could not close above $575.
Currently, the bulls are trying to push prices back above the descending channel. If successful, we can expect a move to the 20-day EMA at $641.
On the contrary, if the bears push prices back into the channel, a retest of the March 18th lows of $452.32 might take place.
We don’t find any setup that has a good risk to reward ratio, hence, we don’t recommend a trade on the ETH/USD pair at the moment.
Bitcoin Cash could not break out of the 20-day EMA but is holding above the downtrend line, which is a positive sign.
If the BCH/USD pair fails to hold the $980 levels, it can slide to $940 and then to the March 18th lows of $884.7951.
On the upside, the 20-day EMA and the 50-day SMA will act as a strong resistance. Once the price sustains above $1,200, it will indicate the start of a new trend. Until then, we shall remain on the sidelines.
We went long on Ripple at $0.71, on March 19. Our suggested stop loss is $0.52, just below the March 18th lows. We took this trade because we anticipated a range bound action on the cryptocurrency.
However, for the past four days, the XRP/USD pair has been correcting back towards the critical support of $0.5627.
If the bulls are unable to recover prices within a day or two, a breakdown of the March 18th lows is possible. If the $0.5375 level breaks, the next support is only at $0.22.
On the upside, the cryptocurrency will pick up momentum above $0.75.
In our previous analysis, we had suggested long positions in Stellar if the bulls buy the dip at $0.23. Currently, the price is struggling to hold above the downtrend line.
If prices dip back below the downtrend line, a retest of the $0.2 level is possible. If this level breaks, the next support is way lower at the support line of the descending channel.
Therefore, we suggest buying the XLM/USD pair on a close (UTC) at $0.25, which will confirm a successful retest of the downtrend line. The target objective on the upside is $0.32 followed by a move to $0.35.
The initial stop loss can be kept at $0.19, on a closing basis (UTC), which can subsequently be trailed higher.
We had recommended buying Litecoin on dips to $165. Traders who have initiated long positions today should keep the stop loss at $142.
The LTC/USD pair turned down from the 20-day EMA on March 21 and broke below the downtrend line. Unless the bulls recover prices quickly, the cryptocurrency will retest the March 18th lows. If the retest fails, a slide to $128 will be on the cards.
The first sign of strength will be when the price sustains above $180. Please use only 50 percent of the usual position size. If you have purchased the normal size, please sell half at the current levels. Let’s keep our risk to the minimum.
Cardano did not trigger our buy levels of 0.000025. It turned down from 0.00002449 on March 21. We expect it to find buying support above the downtrend line, around the 0.00002 mark.
We continue to be bullish on…