The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The market data is provided by the HitBTC exchange.
At the beginning of the year, the total crypto market capitalization had risen above $825 billion, and many expected it to reach trillion dollars during the year. But at press time, June 25, the market capitalization is $236 billion.
It is no surprise that interest to cryptocurrencies has decreased. The current investors are experiencing huge losses while the new ones are waiting for prices to go even lower to enter. Unless fresh money starts to come in, the trend will not change.
The institutional players are likely to enter when the market stabilizes and shows signs of bottoming out. Being a volatile asset class, it will not take a long time for the trend to change from bearish to bullish.
Todd Gordon, founder of TradingAnalysis.com, believes that the short-term pain is still not yet over, but he expects Bitcoin to rally above $10,000 by 2019.
Brian Kelly, founder and CEO of BKCM LLC, told CNBC that Bitcoin is ‘not dead’ and urged the investors to look at the long-term prospects of the cryptocurrencies while investing.
We still believe that most major cryptocurrencies are in a bottoming process and offer a good buying opportunity for the long-term investors. Let’s see if there are trading opportunities today.
The bears succeeded in breaking below the $6,000 levels on June 24, however, they could not sustain those levels. Bitcoin quickly rallied from the intraday lows and closed above the $6,075 levels.
We like the positive divergence on the RSI. This points to the probability of a relief rally, which will be confirmed once the BTC/USD pair breaks out of the 20-day EMA.
The first target on the upside is a move to $7,700, above which the rally can extend to $8,500. Therefore, we recommend a long position on a close above the 20-day EMA. The initial stop loss can be kept at $5,900.
We are trying to catch the bottom here, that can be risky. Therefore, please keep the position size only 40 percent of usual.
Our bullish view will be invalidated if the digital currency turns down from the overhead resistance and breaks below $5,900.
Ethereum dropped to a low of $421 on June 24, but the bulls managed to pull back and close above $450 levels.
The ETH/USD pair is trading above its April lows, which shows its outperformance. The developing bullish divergence on the RSI is another positive sign.
The digital currency should gain momentum once it breaks out of the 20-day EMA. Therefore, we suggest a long position on a breakout and close (UTC) above the 20-day EMA. The SL can be kept at $420.
Our bullish view will be invalidated if the bears break down of $420. In this case, Ethereum might slide to $358 levels.
Ripple is trading precariously close to its major support at $0.45351. It broke below this level on June 24 but managed to close (UTC) above it.
Unless the bulls force a quick recovery, the XRP/USD pair will be vulnerable to another bout of selling by the bears. Below $0.45351, the next support is only at $0.24.
We shall turn positive on the digital currency if it scales above $0.56270. Such a move will confirm that the markets have rejected the lower levels twice, increasing the probability of a double bottom formation.
Bitcoin Cash broke below the critical support at $736.0137 in intraday trading on June 24 but managed to close (UTC) above it.
Today, the bulls are attempting a pullback, which might face resistance at the downtrend line. If it is crossed, the next hurdle will be at the 20-day EMA.
The BCH/USD pair usually enters a small period of consolidation before embarking on a new up move. We need to wait for a few days and then recommend a long position if we find any reliable pattern developing.
On the downside, any break of the $683 levels can sink the digital currency to $619.7510.
EOS is looking weak. It plunged to an intraday low of $6.8926 on June 24 where buying emerged. The bulls are currently trying to push prices above the $8 levels.
The RSI is close to the oversold levels; hence, a pullback is possible. On the upside, the EOS/USD pair has resistances at the downtrend line two, the 20-day EMA and the 50-day SMA.
On the downside, the digital currency can decline to $5.9610. We shall wait for a new buy setup to form. Until then, we believe that the traders should remain on the sidelines.
Once Litecoin broke below the $107.102 levels, we had forecast that it could plummet to $75.131. On June 24, it fell to a low of $75.405. Where will it go from here?
Below $75, the next support is at $67. The RSI is in a deep oversold territory; hence, we anticipate a bounce from the support zone at $67-$75.
The first sign of strength will be when the LTC/USD pair breaks out and sustains above…