Latest trading review on most popular cryptocurrencies.
However, unlike the previous occasions, we have seen a shallow pullback this time. This shows that the traders are not confident of a huge rally from the current prices. We believe a decline to the recent lows is possible.
We had forecast an attempt to pullback from the $10,704.99 levels, Yet, Bitcoin overshot on the downside and fell to $9,300 levels.
Currently, the bulls are attempting a pullback, which might lead to carrying the cryptocurrency to the neckline of the head and shoulders pattern at $13,202 levels.
We expect another round of selling from those levels, which is likely to sink the BTC/USD pair back to the support zone of $10,704.99 to $9,300.
If this support zone breaks, a fall below $8,000 is likely.
On the other hand, if the bulls succeed in holding the support zone, it will lead to starting a new uptrend.
Nimble-footed traders can play the pullback. Still, others should wait for the next dip to buy.
We expected the support zone between the trendline and $940 to hold. But Jan. 17, Ethereum broke below the trendline and fell to a low of $770.
The bulls bought the dip aggressively, which has resulted in a pullback that has carried the cryptocurrency towards the 50 percent Fibonacci retracement levels of the recent fall from $1,424 to $770.
We don’t expect a further rally from the current levels. The ETH/USD pair is likely to face resistance between $1,097.15 and $1,174.36.
We anticipate a range bound trading for the next few days with the trendline offering support on declines.
We expected the $1,733 levels to hold. Nevertheless, the bears easily broke through it, and Bitcoin Cash fell to a low of $1,364.9657 Jan 18.
The current pullback is likely to face resistance at the $2,072 levels, which was the support of the range previously. The subsequent downturn is likely to confirm whether the bottom has been made at $1,364.9657 or will the cryptocurrency fall to $1,194.
Our bearish view will be invalidated if the BCH/USD pair sustains above $2,072 for a day.
We had forecast a fall to 61.8 percent Fibonacci retracement levels of the latest rally. But, Ripple fell close to the 78.6 percent retracement levels, which coincided with the lower end of the descending channel.
The present pullback might face resistance at the 20-day EMA, above which, a move to $2.2 might take place, where the XRP/USD pair will face resistance from the trendline, which had previously acted as strong support.
On the downside, $0.87 is likely to provide strong support. We expect a few days of range-bound trading.
IOTA has completed a bearish descending triangle pattern with the breakdown on Jan. 16, which gives it a pattern target of $1.1.
However, the cryptocurrency took support at $1.93 levels Jan. 17.
Currently, the IOTA/USD pair is retesting the breakout levels of $3.032. If the bulls breakout of the overhead resistance and $3.5, our bearish view will be invalidated.
However, if the bears defend the $3.032 levels, we are likely to see another bout of selling.
We don’t find any clear pattern; hence, we are not recommending any trade.
For two days in a row, the bears broke down below $175.199. Nonetheless, they were unsuccessful in holding prices down.
The current pullback is likely to extend to about $225 levels, where both the moving averages converge.
We don’t find any reasonable trades on LTC/USD pair.
NEM fell close to the 78.6 percent retracement levels on Jan. 16 and Jan. 17. Thereafter, the bulls have commenced a pullback, which is likely to face strong resistance at the trendlines.
The next fall towards the recent lows of $0.55134 will confirm whether the bottom is in place or is there further to go.
Until then, we shall remain on the sidelines on the XEM/USD pair.
Cardano broke below the trendline support on Jan. 16 and Jan. 17, however, the bulls defended the support and pushed prices higher quickly.
Presently, the ADA/BTC pair is attempting to break out of the downtrend line, which is a bullish sign. If successful, it’ll resume its uptrend. We, therefore want to buy at 0.000060 and keep a stop loss at 0.00004700.
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Author: Rakesh Upadhyay