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Market data is provided by the HitBTC exchange.
Hackers stole 913 Bitcoins from Canadian cryptocurrency exchange MapleChange. Though the exchange was small, repeated news of hacks are a major deterrent to the entry of institutional investors into the crypto industry. Responsible for managing large sums of money, traditional financial organizations are unwilling to take significant risks.
Therefore, Fidelity’s entry into the custody service business is a big positive, as it will assure institutional investors have the same level of security that they are used to with traditional assets. After all, Fidelity has been managing billions of dollars securely for decades.
Similar offerings by other large players will also attract the investors who have so far stayed away out of fear of the lack of appropriate security.
A private equity and investment firm NXMH has acquired Bitstamp, one of the world’s largest cryptocurrency exchanges. NXMH, which is a subsidiary of Barclays, one of the U.K.’s largest banks, has reportedly paid $400 million for the deal.
Investments like these show the confidence of the large players in the future of cryptocurrencies.
In terms of adverse news, the Nature Climate Change journal has projected that Bitcoin could push global temperature by over 2 C by 2034 if it gets adopted at the same pace as other major technologies.
Let’s see how the markets are reacting to these headlines.
A break below $6,500 has attracted selling that has dragged Bitcoin lower. The next support on the downside is $6,200, below which a retest of the critical support zone of $5,900–$6,075.04 is likely.
The movement of the BTC/USD pair on dips will give us an idea about the next direction. If the price rebounds sharply from the support, it will indicate that there is buying on dips.
However, if the digital currency easily breaks down of the support, it will suggest selling by the bears. A close below $5,900 will be a negative development that might trigger a number of protective stops, dragging the price to the next support lines of $5,450 and $5,000. Therefore, traders who own long positions can keep their stops at $5,900.
At times, the first break out of a tight range turns out to be a fake move. Therefore, we will have to watch for a couple of days before confirming that the trend has turned down decisively.
After failing to break out of the 20-day EMA for the past few days, Ethereum has turned down. It can correct to the next support at $188.35, which had held on two previous occasions.
However, this time, the downward sloping moving averages and the RSI below 40 shows that the sellers are in command. A break below $188.35 can sink the ETH/USD pair to $167.32, below which the downtrend will resume.
The bearish view will be negated if the price rebounds sharply from the supports and scales above the moving averages. Above $249.93, the pair might start a new uptrend, pushing the price to $322.57.
After hugging the 20-day EMA for the past few days, Ripple fell today, breaking below both moving averages. Currently, we see some buying at the intraday lows, which is a positive sign.
The XRP/USD pair has support at $0.37185, which might hold. If this support breaks, the fall can extend to the next support zone of $0.24508–$0.26913.
On the upside, a break out of $0.48 will indicate strength. We might suggest long positions after the digital currency sustains above $0.5. Our outlook on the pair is positive because the 50-day SMA is turning up and the 20-day EMA is flat.
After trading close to the support line for the past few days, Bitcoin Cash broke down of the symmetrical triangle today. Though the pattern target is way lower, we anticipate a fall to $300, which might act as a support.
Though there is a minor support at $408.0182, we expect it to be broken. The downtrending moving averages and the RSI close to the oversold territory suggest a further fall. The traders holding long positions can square off at $400. The BCH/USD pair will invalidate our bearish view if it breaks out and closes above $500.
After trading close to both moving averages since Oct. 16, EOS plummeted today. It has a minor support at $5, below which the fall can extend to $4.49. Therefore, we suggest traders keep the stops on the existing position at $4.9.
The EOS/USD pair will show strength if it bounces off $5 and climbs above $6.1. As long as the price remains below both moving averages, every attempt to rally will be met with selling at higher levels.
Stellar has broken down of the moving averages. It can now correct to the next support zone of $0.184–$0.2.
With the current fall, the bears have managed to stall the pullback at the downtrend line of the descending triangle…