The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Market data is provided by the HitBTC exchange.
Crypto markets have given up some of their recent gains, which is expected. Rarely do markets bottom without forming a basing pattern. Entrepreneur Charles Shrem believes that the current dip is due to the expiration of Bitcoin futures on the Chicago Mercantile Exchange (CME) and some last minute tax selling.
One good thing about the current bear market in cryptocurrencies is that it has removed most of the hype. Had the bull run continued for a few more months, many more innocent people would have lost money in dubious initial coin offerings (ICOs) and sh*tcoins.
With the year coming to an end, all eyes will be on 2019. Many believe that the markets will see an uptick in the next year, supported by favorable conditions. However, the next leg of the rise will require strong support from institutional players.
Will Facebook’s rumored foray into cryptocurrencies be a game changer or will Amazon give a boost by accepting cryptocurrencies? There are many possibilities, but it is difficult to predict which one will see the light of the day and produce the desired effect.
The major trend in Bitcoin is down while the short-term trend is indecisive. It has broken down of the 20-day EMA and the RSI has dipped back below 50. This shows that the bears are trying to resume the downtrend.
However, the bulls are not relenting and are currently attempting to climb above the 20-day EMA once again. If successful, it will form the right shoulder of the inverse head and shoulders pattern.
The bullish inverse head and shoulders is a reversal pattern, which will complete on a breakout of the neckline. The breakout has a pattern target of $5,500.
Conversely, if the BTC/USD pair fails to cross the neckline or the 50-day SMA and turns down once again, a retest of the Dec. 15 low of $3,236.09 is probable. A break of the yearly lows will resume the downtrend and will be a negative development. The price action of the next few days will confirm whether a bottom is in place.
Ripple broke below the 20-day EMA on Dec. 27 but has bounced back sharply from the support at $0.33108. We anticipate another attempt by the bulls to break out of $0.40.
If successful, the XRP/USD pair can rally to the resistance line of the descending channel. Though $0.45 will act as a resistance, we expect it to be crossed this time.
Contrary to our expectation, if the price turns down from $0.40 and plunges below $0.33108, a retest of $0.286 and $0.24508 is probable. We should see a decisive move within the next 3-4 days.
Ethereum is attempting to bounce from the 20-day EMA. If successful, it will attempt to move up to $167.32 once again.
The 20-day EMA is flat and the RSI is also in positive territory, which increases the probability of a move up from current levels. $136.12 might offer minor resistance, but we expect it to be crossed. A move above $167.32 will confirm a bottom at $83 and the start of a new trend.
However, if our assumption is proven wrong and the ETH/USD pair plunges below the 20-day EMA, it can slide to $108 and below that to $100. Below $100, a retest of the low is likely.
Bitcoin Cash broke below the 20-day EMA on Dec. 27 but has bounced back sharply from close to $136.72, which is 61.8 percent Fibonacci retracement level of the recent pullback from $73.50 to $239. It is currently trading inside a descending channel, that looks like a bullish signal.
On the upside, the virtual currency will face resistance at the channel and above it at the 50-day SMA. If both these levels are crossed, we expect the recovery to resume. The pattern target of the bullish flag is $355, with a minor resistance at $307.10.
On the contrary, if the bears turnaround the BCH/USD pair from the current levels and break below the channel, it can slide to $108.92 and below that to the low of $73.50. The next couple of days will give us a better idea about the next direction.
The breakdown of the 20-day EMA and $2.4050 in EOS was short-lived. It has bounced sharply from $2.3093 and has broken above the 20-day EMA. The bulls will try to break out of the 50-day SMA and $3.2081 once again. If successful, it will indicate a change in trend.
The 20-day EMA is flat and the RSI is close to 50, which points to a consolidation. However, the long-term trend still remains down.
The EOS/USD pair will weaken if it plunges below $2.1733. It will resume its downtrend on a break below $1.55. We do not see any buy setups now, hence, we remain neutral.
Stellar is trading below the 20-day EMA, which is flat. The RSI is also in the negative territory. This shows that the bears are trying to make a comeback.
The virtual currency will point to a reversal if it breaks out and closes…