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Mark Dow, a former International Monetary Fund (IMF) economist who had bet short on Bitcoin in December of last year, has tweeted that he has covered his positions. However, Dow also mentioned that he has not opened a long position and has no interest in doing so.
Another prominent trader, Mike Novogratz, an ex-Goldman Sachs partner and founder of crypto merchant bank Galaxy Digital, expects the leading digital currency to hold $3,000. He anticipates a consolidation between $3,000 and $6,000 in the near future.
A few crypto hedge funds that had jumped on the bandwagon without proper risk management measures are closing down. However, others — like Morgan Creek Digital — are getting more aggressive in deploying their capital at these low prices.
Another institutional cryptocurrency trading firm Genesis Global continues to expand, expecting to increase its employee numbers in 2019. Similarly, major United States crypto exchange Coinbase has also doubled its staff count since June.
This shows that the players who invested smartly are benefitting from the fall and are expecting a bright future going forward.
Bitcoin is currently in a pullback. It has broken out of the 20-day EMA for the first time since Nov. 14. This shows buying by the aggressive bulls and short covering. Wednesday is the third day of the pullback. Usually, during a strong downtrend the throwback rally fizzles out within three days.
If the bulls continue supporting the BTC/USD pair, it may reach the first overhead resistance of $4,500. We anticipate some resistance at these levels, as short-term traders will look to book profits, and aggressive bears will establish short positions once again.
The main trend still remains down. However, the flattening 20-day EMA and the RSI in the neutral territory show that the short-term trend is changing. The next leg down will give us a better idea of whether a bottom is in place, or if this is just a relief rally.
The important levels to watch on the upside are $4,500 and $5,000. On the downside, a break of $3236.09 will resume the downtrend. Investors can hold on to their positions. We shall wait for a new uptrend to start before adding positions.
The recovery in Ripple has cleared the 20-day EMA and is facing resistance at the next overhead resistance of $0.4. The 50-day SMA is also located close by, so we anticipate a minor pullback or a consolidation at this level.
If the bulls scale the 50-day SMA, the rally can extend to the resistance line of the descending channel at $0.5. The $0.5–$0.62 zone will act as a major roadblock. Short-term traders can book partial profits at these levels and trail the stops on the remaining positions higher.
Conversely, if the XRP/USD pair turns down from $0.4, it can correct to $0.33108. Both moving averages are flattening out and the RSI has jumped into the positive territory, which indicates a trend change. We shall get a better idea in the next 3–4 days.
Ethereum has risen above the overhead resistance of $102.5 and the 20-day EMA. In doing so, it has re-entered into the previous consolidation.
The ETH/USD pair can now move up to the top of the range at $130. The $130–$136.12 zone is likely to act as a stiff resistance. Short-term traders can book partial profits at these levels and trail the stops on the remaining position higher.
If the bulls fail to sustain the momentum and the digital currency corrects without reaching our desired target objective, we anticipate strong support at $102.2. If this level breaks down, a retest of the lows is probable.
EOS easily scaled the 20-day EMA and is on target to reach the 38.2 percent Fibonacci retracement of $3.0510. This might act as a minor resistance.
However, the 20-day EMA has flattened and the RSI has risen close to the positive territory. This shows that the short-term trend is changing. Above $3.0510, the pullback can extend to $3.5147.
If the EOS/USD pair turns down from one of the above levels, it is likely to find support close to $2.1733. The downtrend will resume below $1.55.
Stellar has reached the critical overhead resistance of $0.13427050 from where it had turned down on Dec. 8. If the bears defend the level again, we might witness a minor correction or a consolidation.
If the bulls scale $0.13427050, a rally to $0.184 is likely. The 20-day EMA is flattening out, which shows that the short-term trend is changing.
However, the XLM/USD pair is an underperformer, as it has not even crossed the 20-day EMA and its RSI is still in the negative territory. Hence, we are not proposing a trade in it. We shall revise our outlook if we find a reliable buy setup.
As we had expected, Bitcoin Cash has risen…