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The market data is provided by the HitBTC exchange.
Every bear market tests the patience of the investors. The ones who stick around reap the maximum benefits when the new bull market starts. Most retail investors are easily influenced by the wild forecasts and end up buying near the peaks and selling close to the bottoms.
Some people that tend to predict the end of the world during a bear phase. Similarly, we can find many forecasting the end of cryptocurrencies. But, the astute investor knows that Bitcoin and the altcoins are a resilient bunch with many possible uses, so it is better to buy and stick with them when the prices are low rather than chase when the prices are skyrocketing.
The crypto hedge funds returns have tumbled in 2018. However, they are willing to accept the short-term pain in favor of long-term gains that will accrue from the entry of the institutional investors.
A bear market is a good time to shift money from non-performing and dubious digital currencies to the more stable ones. Investors who held on to their Apple or Amazon during the dotcom bubble reaped huge benefits while the others holding shady companies ended up broke.
Yoni Assia, the CEO of eToro shared with Business Insider that if one has a long-term approach then “selling crypto now is like selling Apple in 2001.”
While the fundamentals suggest ‘hodling,’ let’s see what the charts forecast.
For the past three days, Bitcoin had been trading inside the intraday range of June 14. Today, the price is attempting to break out of the tight range.
If the BTC/USD pair sustains above $6,715, it can pull back to the 20-day EMA. Though both the moving averages are sloping down and the RSI is in the negative territory, our view is of the formation of a range in the leading digital currency. Hence, a breakout and close (UTC) above the downtrend line is a good place to enter long positions with the stops below the $6,000 levels.
On the upside, the first resistance is at the $7,700 levels, above which the rally can extend to the resistance line of the symmetrical triangle, close to $8,500 levels.
This is a high-risk trade, hence, please keep the position size less than 40 percent of usual size. Our assumption of a range bound trade will be invalidated if the price breaks below the $6,000 levels.
Unlike other digital currencies, Ethereum is trading well above its June 13 lows of $450.1. This shows short-term outperformance.
The first sign of strength will be when it breaks out of the descending channel. However, this will not turn it positive because it had broken out of the channel on June 6 but could not break out of the 20-day EMA.
Hence, we suggest waiting until the ETH/USD pair breaks out of the downtrend line. This will confirm a likely change in trend.
The first target objective will be a rally to $628.99, which is the intraday high of June 3. The 50-day SMA is also close to this level. Once these two resistances are crossed, a rally to $700 can be expected.
As the overall sentiment is negative, any long position should be attempted with less than 40 percent of the usual position size.
Ripple is trying to find support close to the $0.5 levels. Below this, the final support is at $0.45351. We believe that the bulls will aggressively defend the support zone between $0.5-$0.45351 because if this zone breaks, the next support is way lower at $0.24.
Any pullback will face selling at the $0.56270 levels and above that at the 20-day EMA. The XRP/USD pair will be out of danger once it breaks out of the downtrend line one.
We shall wait for the price to sustain above the downtrend line one before recommending any trade. On the upside, the rally will face resistance at $0.7 and again at the downtrend line of the descending triangle.
Bitcoin Cash has found support close to the intraday lows of June 13. Any pullback will face resistance at the downtrend line.
Periodically, the BCH/USD pair enters small trading ranges before breaking out or breaking down from it.
A break out of the 20-day EMA will be the first indication of a change in trend. Traders can initiate long positions if the price sustains the $1,000 mark with a target objective of $1,200 and $1,500. The stops can be placed below the $800 levels.
A breakdown of the $817.8709 levels can extend the down move to the next support zone of $777.5304-$736.0137.
This is a risky trade, hence, please keep the allocation size 40 percent of usual size.
EOS is trying to stay above the $10.3384 levels. A breakdown of this level will result in a retest of the June 13 lows of $9.0887, below which a fall to $8 levels is likely.
Unlike the other digital currencies, the EOS/USD pair is still way above its April levels, which shows…