Litecoin Investor

Most major cryptocurrencies have resumed their up move, which shows that the rally can extend for a few more days.

The total crypto market capitalization has risen from about $190.5 billion at the start of the year to over $243 billion. That is a rise of about 27.55% within 17 days. This shows that the bulls are back in action. Another interesting thing to note is that the rally is led by altcoins, which are outperforming Bitcoin (BTC) by a huge margin. This shows that the current rally is more broad-based, announcing the arrival of altseason.

Venture capital firm Grayscale Investments reported that $225.5 million in investments flowed into its products in Q4 2019. That took the total investment inflow in 2019 to $607.7 million. 

The most encouraging sign was that 71% of the investments came from institutional investors, dominated by hedge funds. This shows that institutional investors have upped their stake in the asset class. 

Daily cryptocurrency market performance. Source: Coin360

The futures market gives a good insight into the sentiment of the larger players.  The CME group Bitcoin futures open interest has risen to 5,328 contracts. If the open interest maintains at the current level or increases further by the time of the monthly close, it will set a new record, and higher than the last one set in July 2019 at 5,252 contracts. Rising open interest with an increase in price is a positive sign, as it shows that the institutional players are confident that the rally will extend further. 

The price action on most major cryptocurrencies is showing signs of an up move. However, as the price is coming out of a long slump, it is likely to be a volatile ride up. Therefore, traders can swing trade the first leg of the up move for maximum benefits.

BTC/USD

After a minor correction of two days, Bitcoin (BTC) has resumed its up move. Its target remains $10,360.89. Though there is a minor resistance at $9,500, we expect it to be crossed. The 20-day EMA is sloping up and the RSI is close to the overbought zone, which suggests that bulls are in the driver’s seat.

BTC USD daily chart. Source: Tradingview

In case of a correction, we anticipate the bulls to provide support at the 20-day EMA. Therefore, dips to the 20-day EMA can offer a buying opportunity for traders who want to add to their positions or establish fresh positions.

Our view will be invalidated if the BTC/USD pair turns down from the overhead resistance level and plummets below $7,856.76. Traders can hold their long positions with stops at $7,600.

ETH/USD

Ether (ETH) bounced off the immediate support at $157.50 on Jan. 16, which is a positive sign. This shows that the bulls are not waiting for a deeper correction to buy. The altcoin has reached the overhead resistance at $173.841, above which, a rally to $197.75 is possible.

ETH USD daily chart. Source: Tradingview

We anticipate the bears to mount a stiff resistance at $197.75, hence, the traders can book partial profits on the remaining long positions close to $190.

Our bullish view will be invalidated if the ETH/USD pair turns down from the current levels and plummets below the $157.60 to $151.829 support zone. For now, the traders can retain the stops at $150, which can be trailed higher after the pair scales above $173.841.

XRP/USD

XRP dipped to the neckline of the inverted head and shoulders (H&S) pattern on Jan. 16 but the bulls defended this level, which is a positive sign. If the price can now scale above $0.2454, it can move up to $0.31503. 

XRP USD daily chart. Source: Tradingview

The traders who initiated long positions on our suggestion given in the previous analysis can maintain the stop loss at $0.1995.

Our bullish view will be negated if the bears defend the overhead resistance at $0.2454 and sink the XRP/USD pair below the neckline of the inverted H&S pattern.

BCH/USD

The bulls defended the dip to the $306.78 support levels on Jan. 16. Bitcoin Cash (BCH) is currently attempting to rise above the overhead resistance at $360 once again. If successful, the altcoin can reach $423.40.

BCH USD daily chart. Source: Tradingview

Both moving averages are sloping up and the RSI is in overbought territory, which suggests that bulls are in command.

For now, the traders can retain the stops on the remaining long positions at $300. The stops can be trailed higher after the BCH/USD pair scales above $360. Our bullish view will be invalidated if the bears sink the pair below the critical support at $306.78.

BSV/USD

Bitcoin SV (BSV) has pulled back to just below the 50% Fibonacci retracement level of the recent leg of the rally from $115.75 to $458.74. This shows that the bulls are buying on dips. However, the bounce lacks strength, which points to consolidation for the next few days.

BSV USD daily chart. Source: Tradingview

Attempts to move up will face selling from traders who are stuck at higher levels. Hence, we do not expect a new high within the next few days at least.

On the downside, if the bears sink the BSV/USD pair below $280, the fall can extend to $255.62, which is an important level to watch out for. The traders who have a small long position open after booking profits recently can trail the stops to $280.

LTC/USD

After a minor correction for the past couple of days, Litecoin (LTC) has resumed its up move. The next level to watch out for is $66.1486. We expect the bears to mount a defense of this level but if the bulls can scale it, the up move can extend to $80.2731. 

LTC USD daily chart. Source: Tradingview

The traders can trail the stop loss on the remaining long positions to $54. If the price rises above $60.8452 but fails to scale above $66.1486, the stops can be tightened further.

Contrary to our assumption, if the price turns down from the current levels and breaks below $54.7278, the LTC/USD pair can dip to $50.

EOS/USD

EOS bounced off $3.5216 on Jan. 16 and is currently attempting to scale above the overhead resistance at $4.24. If successful, the altcoin can reach $4.8719. We anticipate the bears to defend this level aggressively. 

EOS USD daily chart. Source: Tradingview

However, if the bulls fail to scale above $4.24, the EOS/USD pair might consolidate for a few days. A break below $3.50 will signal a deeper correction. Hence, the traders can keep the stop loss on the remaining long positions at $3.4. The stops can be trailed higher after the pair sustains above $4.24.

BNB/USD

Binance Coin (BNB) bounced off $16.31 on Jan. 16 and broke above the minor overhead resistance at $18.19. However, failure of the altcoin to sustain above $18.2 indicates that buying dries up at higher levels. 

BNB USD daily chart. Source: Tradingview

If the bulls fail to sustain the price above $18.2, the BNB/USD pair might remain range-bound for a few days. 

Our view will be invalidated if the bears sink the price below $16. Below this level, a drop to the 20-day EMA and below it to $14.5201 is possible. Therefore, the traders can retain the stops on the long position at $15.90.

ETC/USD

Ethereum Classic (ETC) has risen into the top ten list of cryptocurrencies in terms of market capitalization. The altcoin rallied from a low of $5.46914 on Jan. 14 to a high of $12.04 today by press time, a gain of about 120% in a very short timespan. 

ETC USD daily chart. Source: Tradingview

Traders who had initiated long positions on our earlier recommendation are sitting on huge profits. We anticipate the bears to defend the overhead resistance zone between $12 and $14. The RSI has reached extremely overbought levels. Hence, a few days of correction or consolidation is likely.

Therefore, traders can book profits on 50% of the position at the current levels and trail the remaining position with a close stop loss.

TRX/USD

The bulls have maintained Tron (TRX) above $0.0163957 for the past two days but have not been able to build on the gains. This shows a lack of urgency among the bulls to buy at higher levels.

TRX USD daily chart. Source: Tradingview

If the bulls can push the price above $0.0181864,  move to $0.020 and above it to $0.0234 is possible.

However, if the bulls fail to carry the price higher, the bears will again attempt to sink the TRX/USD pair below $0.0163957. If successful, a drop to $0.0146343 is possible. We do not find any attractive buy setups, hence, we remain neutral on the pair.

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 HitBTC exchange.

Original Article
Author: btcethereumadmin

The recent Bitcoin and altcoin rally is leading traders to wonder whether consolidation or a minor correction is in store but the current market conditions suggest buying on the dips.

The crypto space is making a comeback and the rally is being led by altcoins. While several altcoins might participate in the initial rally, we believe that the market will start differentiating between each cryptocurrency based on its fundamentals. Hence, traders should avoid buying the non-performers expecting a repeat of the previous bull market when every altcoin staged a parabolic rally.

When compared against altcoins, Bitcoin (BTC) has been an underperformer over the past few days. Its dominance rate, which had risen above 69% on Jan. 8, dipped below 66% on Jan 15. On Jan. 14 Bitwise Asset Management withdrew its Bitcoin ETF proposal pending with the United States Securities and Exchange Commission (SEC) and this means the wait for a Bitcoin ETF just got longer.

Daily cryptocurrency market performance. Source: Coin360

Asset manager WisdomTree plans to launch a regulated stablecoin in the US, backed by assets such as gold, fiat currencies or government debt. This shows how some of the larger traditional players are gradually making an entry into the crypto universe.

As blockchain gains wider acceptance, its demand is likely to shoot up. LinkedIn Learning, an educational subsidiary of professional social network LinkedIn, expects blockchain to be the most sought after hard skill in 2020.

A few major cryptocurrencies have rallied sharply in the past few days. After the recent rise, how should the traders approach them? Let’s analyze the charts to find out.

BTC/USD

After a few days of consolidation, Bitcoin (BTC) has resumed its journey towards $10,360.89. The up move might face resistance close to $9,500 but as the bulls are back in the driver’s seat, we anticipate the resistance to be scaled.

BTC USD daily chart. Source: Tradingview

The sentiment has turned from sell on rallies to buy on dips. Hence, any dip to the 20-day EMA should be viewed as a buying opportunity.

Our bullish view will be invalidated if the price turns down from the current levels or from $9,500 and plunges below the critical support at $7,856.76. Traders can trail the stops on the long positions to $7,600.

ETH/USD

Ether (ETH) skyrocketed on Jan. 14 and easily scaled above the $151.829 to $157.60 overhead resistance zone. This shows that the upside momentum is picking up. Currently, the price is facing minor resistance at $173.841.

ETH USD daily chart. Source: Tradingview

If the price scales above $173.841, a move to $197.75 is possible. The moving averages have completed a bullish crossover and the RSI is near the overbought zone, which suggests that bulls are in command.

However, if the bulls fail to break above $173.841, the ETH/USD pair might remain range-bound between for a few days. Traders can book partial profits closer to $170 and trail the stops on rest of the long positions at $150. Our bullish view will be invalidated if the bears sink the price below $151.829.

XRP/USD

The rally on Jan. 14 has carried XRP above the overhead resistance at $0.2326. This up move has completed a bullish inverted head and shoulders (H&S) pattern, which has a minimum target objective of $0.278. Above this level, the next target to watch out for is $0.31503. The traders can initiate long positions at current levels and keep a stop loss at $0.19950.

XRP USD daily chart. Source: Tradingview

The moving averages have completed a bullish crossover, which also points to a likely change in trend. Our bullish view will be invalidated if the bears sink and sustain the price below the neckline of the inverted H&S pattern.

BCH/USD

After consolidating for three days, Bitcoin Cash (BCH) surged on Jan. 14 and scaled above the overhead resistance at $306.78. It is currently facing resistance at $360, which is an important level to watch out for.

BCH USD daily chart. Source: Tradingview

If the price does not give up much ground from the current levels, it will indicate that the bulls are in no hurry to book profits. A tight consolidation near $360 will increase the possibility of a break above it. Above this level, the next target is $423.40.

The traders can trail the stops on the remaining long positions to $300. The BCH/USD pair will lose momentum if it breaks and sustains below $306.78.

BSV/USD

Bitcoin SV (BSV) broke above the previous lifetime high of $255.62 on Jan. 14 and surged to a high of $458.74. The traders who had gone long on our suggestion were up by about 380% near the highs. We never expected this kind of a rally, hence, we are pleasantly surprised by it.

BSV USD daily chart. Source: Tradingview

Though in the previous altcoin season, the returns on altcoins were huge, the current run in the BSV/USD pair is more news-based. Hence, volatility is likely to remain high.

Such violent rallies are hardly sustainable. Equally, it is difficult to predict where the rally would end when backed by strong momentum. Therefore, we suggest traders book profits on intraday rallies on about 75% of the remaining position and keep a small position open with a trailing stop loss that can be a little deep.

LTC/USD

Litecoin (LTC) has reached the first target objective of $60 where it is facing some resistance. The RSI has also jumped into the overbought territory, which suggests a consolidation or minor correction is likely.

LTC USD daily chart. Source: Tradingview

However, if the bulls can sustain the price above $60, a rally to $66.1486 is possible. We anticipate that the bears to mount a stiff resistance at $66.1486.

The traders can book partial profits close to current levels and trail the remaining long positions with a stop loss at $52. Our bullish view will be invalidated if the bears sink the price below $50.

EOS/USD

EOS broke above the resistance at $3.69 and came close to the next target at $4.24 on Jan. 14. This is a positive sign and it indicates that the trend has changed from bearish to bullish. As the RSI is deep in overbought zone, the altcoin might consolidate at the current levels for a few days.

EOS USD daily chart. Source: Tradingview

If the price does not give up much ground below $3.50, the possibility of a move to $4.8719 increases. Traders can trail the stop loss on the remaining long positions to $3.4.

However, if the correction from the current levels sustains below $3.5, the EOS/USD pair can retest the breakout level of close to $3.0.

BNB/USD

Binance Coin (BNB) closed (UTC time) above the overhead resistance at $16.50 on Jan. 14 and extended its gains today, which is a positive sign. This shows that the buyers at keen to enter at higher levels.

BNB USD daily chart. Source: Tradingview

The next target is a move to $21.80. The moving averages have completed a bullish crossover and the RSI has risen into the overbought zone, which suggests that the bulls have the upper hand. The traders can trail the stop-loss on the long position to $15.90.

Our bullish view will be negated if the BNB/USD pair turns down from the current levels and sustains below $16.

TRX/USD

Tron (TRX) broke above the horizontal resistance at $0.0163957 on Jan. 14 and has extended its gains today. The moving averages have completed a bullish crossover and the RSI has risen into the overbought zone, which suggests that bulls have the upper hand.

TRX USD daily chart. Source: Tradingview

If the bulls can sustain the TRX/USD pair above $0.0163957 for three days, a rally to $0.0234 is likely.

Conversely, if the bears sink the price below $0.0163957, a drop to the 20-day EMA is possible. Such a move will indicate that sellers are still active at higher levels. We will watch the price action for some more time before proposing a trade in it.

XMR/USD

Monero (XMR) bounced off the support at $57.1199 on Jan. 14 and broke above the overhead resistance at $67.02 today. However, the bulls have not been able to sustain the price above $67.02, which shows that sellers are active at higher levels.

XMR USD daily chart. Source: Tradingview

If the price turns down from current levels, the XMR/USD pair is likely to remain range-bound between $57.1199 and $67.02 for the next few days. A breakout and close (UTC time) above $67.02 will be a huge positive. Above this level, a rally to $82 and above it to $90 is possible.

Our bullish view will be invalidated if the bears sink the price below $57.1199. We will wait for the price to sustain above $67.02 before recommending a trade in it.

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 HitBTC exchange.

Original Article
Author: btcethereumadmin

Though several cryptocurrencies are stuck in a range, the trend is gradually turning positive.

Bitcoin has seen an uptick in volumes in the new year. A report by cryptocurrency market research firm Arcane Research shows that 7-day average daily trading volume has surged 126% in a week. Along with Bitcoin trading volume, the CME Bitcoin futures contract has also seen increased activity. The Bitcoin futures open interest has skyrocketed to a seven month high, which is only behind the peak seen at the end of June. 

A pick up in volume and open interest with rising prices or even if prices remain range-bound is usually a sign of accumulation by the stronger hands. This could result in a further up move in Bitcoin in the next few days. 

While several indicators paint a bullish picture for Bitcoin prices, Tone Vays has maintained a cautious stance because the BitMEX funding rate has still not turned bullish. Vays considers the funding rate to be a reliable lead indicator. 

 Daily cryptocurrency market performance. Source: Coin360

The Chinese government officials are keenly studying about cryptocurrencies. This was confirmed when a 200-page manual titled “Digital Currency: A Reader for Cadres” was sent for second print just after three months of its initial release.

While the data is encouraging and points to a possible uptick in Bitcoin and other major cryptocurrencies, let’s see if the setup on the charts also projects a rally. 

BTC/USD

Bitcoin (BTC) has been consolidating above $7,856.76 for the past few days. This suggests that bulls are in no hurry to close their positions. The 20-day EMA is sloping up and the RSI is in the positive territory, which suggests that the path of least resistance is to the upside.

BTC USD daily chart. Source: Tradingview

The BTC/USD pair is likely to pick up momentum on a break above $8,452.84. Above this level, a move to $9,500  and above it to $10,360.89 is possible. The traders can maintain the stop-loss on the long positions at $6,800. We shall recommend trailing the stops higher after the price sustains above $8,452.84.

Contrary to our assumption, if the bears sink the price below $7,856.76 and the 20-day EMA, it will indicate a lack of demand at higher levels. If the price re-enters the range, a drop to $7,000 is possible. We anticipate a sharp move within this week.

ETH/USD

Ether (ETH) is moving up in an ascending channel. It is facing resistance close to $148 levels. The bears are attempting to sink the price below the moving averages. If successful, it will drag the price to the support line of the channel.

ETH USD daily chart. Source: Tradingview

A breakdown of the channel and the support at $131.484 is likely to attract further selling. The next support on the downside is $125.

However, if the ETH/USD pair bounces off the moving averages, the bulls will make another attempt to scale above the overhead resistance zone of $151.829 to $157.50. As the price is struggling at higher levels, we suggest trailing the stops on the long positions to $128. Let’s reduce the risk.

XRP/USD

XRP bounced off the 20-day EMA on Jan. 10, which is a positive sign. However, the bulls could not carry the price to the overhead resistance at $0.2326, which shows a lack of demand at higher levels.

XRP USD daily chart. Source: Tradingview

The bears will now attempt to sink the price below the moving averages and the critical support at $0.20041. If successful, a drop to $0.18339 will be on the cards.

On the other hand, if the bulls defend $0.20041 support, the XRP/USD pair might remain range-bound for a few more days. The pair will pick up momentum on a break above $0.23260. Until then, we remain neutral on the pair. 

BCH/USD

Bitcoin Cash (BCH) is struggling to break out of the overhead resistance at $270.15. However, the positive thing is that the bulls have not allowed the price to give up much ground.

BCH USD daily chart. Source: Tradingview

If the bulls can carry the price above $270.15 and sustain it, a rally to $306.78 is possible. The upsloping 20-day EMA and the RSI in the positive zone show that bulls are in command. The traders can trail their stops on the remaining long positions to $255.

Our bullish view will be invalidated if the bears sink the price below $258.26. This will increase the possibility of a dip to 241.85.

LTC/USD

Litecoin (LTC) has scaled and closed (UTC time) above the overhead resistance at $50, which is a positive sign. The upsloping 20-day EMA and the RSI in the positive territory indicate that bulls have the upper hand.

LTC USD daily chart. Source: Tradingview

If the price can sustain above $50, a rally to $60 and above it to $66 is possible. The LTC/USD pair might pick up momentum above $52.

Conversely, if the bulls fail to sustain the price above $50, a drop to $47.8264 is possible. If this support also cracks, the pullback can extend to the 20-day EMA. We suggest traders trail the stop loss on the long positions to $47.

EOS/USD

EOS has broken out of the downtrend line. This is the first closing (UTC time) above the line since July of this year. If the bulls can sustain the price above the downtrend line for three days, it will signal a possible change in trend. 

EOS USD daily chart. Source: Tradingview

The 20-day EMA is sloping up and the RSI is in the positive zone, which shows that the bulls are in command. The next target to watch out for is $3.69. 

However, if the bears sink the price back below the downtrend line, the EOS/USD pair can dip to $2.8695. If this support holds, the bulls might again attempt to push the price to $3.69. Our bullish view will be invalidated if the price slips below the 20-day EMA. The traders can trail the stop-loss on the remaining long positions to $2.85.

BNB/USD

Binance Coin (BNB) has been gradually moving up but it lacks momentum. This shows that the bulls are in no urgency to buy. The moving averages are on the verge of a bullish crossover and the RSI is in the positive territory, which suggests that bulls are attempting to make a comeback.

BNB USD daily chart. Source: Tradingview

If the price sustains above $14.5201, a move to $16.50 is likely. We anticipate momentum to pick up above $16.50. 

Contrary to our assumption, if the bulls fail to defend the support at $14.5201, the BNB/USD pair can dip to $12.98 levels once again. Therefore, we suggest traders trail the stop-loss in the long position to $14.

BSV/USD

The pullback in Bitcoin SV (BSV) from the recent highs was shallow, which is a positive sign. This shows that the bulls are using dips to buy and are in no hurry to book profits. If the bulls can now scale the price above $177 to $188.69 resistance zone, a rally to record highs is possible.

BSV USD daily chart. Source: Tradingview

On the other hand, if the bulls fail to propel the price above the overhead resistance zone, the bears will attempt to sink the price back below $155.38. If the BSV/USD pair slips below $147.28, it can quickly drop to $127.102. Therefore, traders can trail the stop loss on the remaining long positions to $145.

XMR/USD

After holding above $57.1199 for the past few days, Monero (XMR) is currently under attack from the bears. The failure to the bulls to carry the price toward $67.02 is attracting selling. If the price slips and closes (UTC time) below $57.1199, a drop to the 20-day EMA is possible. 

XMR USD daily chart. Source: Tradingview

The 20-day EMA is sloping up and the RSI is in the positive zone, which suggests that bulls have the upper hand. If the price bounces off the current levels or the 20-day EMA, the bulls will again attempt to push the price above $60. 

We do not find any reliable buy setups at the current levels, hence, we remain neutral on the XMR/USD pair.

TRX/USD

Tron (TRX) broke out of the descending channel on Jan. 10 and has sustained above it since then. However, it has failed to pick up momentum and rally towards $0.0163957, which suggests a lack of buyers at higher levels.

TRX USD daily chart. Source: Tradingview

The bears are currently attempting to sink the price below the moving averages. If successful, the TRX/USD pair can again dip to $0.0126948. 

On the other hand, if the price bounces off the moving averages, the bulls will again try to push the price above $0.0163957. If successful, the pair is likely to move up to $0.020 and above it to $0.0234.

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 HitBTC exchange.

Original Article
Author: btcethereumadmin

The up move in the top crypto performers of the past seven days shows that bulls are back in the game.

The CME Group will launch its Bitcoin options contract on Jan. 13. The analysts at JPMorgan Chase & Co. have spotted a 69% increase in open interest from year-end in CME’s existing Bitcoin futures contracts. 

They also noted that the number of large open-interest holders has picked up. This shows an increase in institutional interest before the launch of options trading. Nevertheless, as Bitcoin price action has been mixed during previous launches of such services, it is difficult to predict the move based on this event alone.

Halving, however, is an important event and analysts at market research firm Fundstrat Global Advisors believe that it has not yet been “priced into” Bitcoin’s price. Hence, they anticipate Bitcoin to rally more than 100% this year. Increasing geopolitical tensions and the United States Presidential elections later in the year could also act as a catalyst for the up move.

Crypto market data weekly view. Source: Coin360

The U.S., which had been the leader in overall Bitcoin transaction volume since 2013 has been pushed to the third spot in 2019. The top two positions have been taken by Singapore and Seychelles. 

After a long time, most major cryptocurrencies are likely to be in the positive on a weekly basis. This shows that the buying has been broad-based, which is a positive sign. With the sentiment gradually turning around, can the top performers of the past seven days build upon their gains? Let’s study the charts.

BSV/USD

Bitcoin SV (BSV) surged about 43% in the past seven days to claim the top spot. The altcoin has been the best performer among major cryptocurrencies for the second consecutive week. 

It is speculated that Craig Wright, who claims to be Satoshi Nakamoto, submitted more documents to the court in an ongoing legal battle with the estate of former business partner Dave Kleiman, which might have details of a trust that holds his Bitcoins. Some analysts believe that this news was one of the reasons for the sharp rally in Bitcoin SV. Can the altcoin rally further or is it time to book profits? Let’s analyze the charts.

BSV USD weekly chart. Source: Tradingview

The bulls easily scaled the overhead resistance levels at $113.96 and $155.38. This shows that the BSV/USD pair is backed by momentum. After the sharp rally, the bulls might face stiff resistance at $188.69.

Though it is too early to call a short-term top, the pair might enter a minor correction or consolidation for the next few weeks. If the bulls can hold the price above $155.38, it will signal strength and increase the likelihood of a breakout above $188.69.

If the bulls scale above $188.69, a retest of the lifetime highs at $255.62 is possible. Our bullish view will be invalidated if the correction drags the price below $127.102, which is 50% Fibonacci retracement level of this leg of the up move.

DASH/USD

Dash (DASH) has found a place among the top crypto performers after a long gap. The altcoin surged about 29% in the past seven days. The recovery in price started on the news that Burger King Venezuela would start accepting cryptocurrency payments. 

Initially, only one store will accept cryptocurrencies but later, 40 other locations would join by the end of this year. Does the cryptocurrency show signs of having bottomed out? Let’s study the chart.

DASH USD weekly chart. Source: Tradingview

The DASH/USD pair has been a huge underperformer in the past few months. It slipped from a high of $188.5598 in June to a low of $38.2558 in late Dec. After the sharp down move, the bulls stepped in closer to $40.

The relief rally has carried the price to the downtrend line. The 20-week EMA is also placed close to the downtrend line. Hence, we anticipate the bears to defend this level aggressively. A breakout of the 20-week EMA will indicate a possible change in trend.

Above the downtrend line, the next level to watch out for will be $77.7262, which might again act as a stiff resistance. If the price turns down from the current levels or from $77.7262, the pair might remain range-bound for a few weeks. The pair will pick up momentum on a break above $77.7262.

LINK/USD

Chainlink (LINK) was the third-best performer of the past seven days with a rally of over 24%. Does the current rise indicate a change in trend? Can LINK build on its strength over the next few weeks? Let’s study its chart. 

LINK USD weekly chart. Source: Tradingview

The LINK/USD pair has largely been range-bound between $1.50 and $3 for the past few months. This shows that bulls purchase close to support of the range and book profits near resistance. The current up move can reach $3 in the next few weeks.

If the bulls succeed in pushing the price above $3, a rally to the lifetime high is likely. Conversely, if the price turns down from $3, a few more weeks of range-bound action is possible. The pair will turn negative on a break below the strong support at $1.50. 

BCH/USD

Bitcoin Cash (BCH) also benefited from the news surrounding Craig Wright. The altcoin rallied about 18% in the past seven days. This is the third consecutive week that Bitcoin Cash has been among the top performers. After the recent rally, is it time for a reversal or can the up move extend further?

BCH USD weekly chart. Source: Tradingview

After six weeks of range-bound trading between $227.01 to $192.52, the BCH/USD pair broke out and rallied above the overhead resistance at $241.85 and $270.15. This shows a pick up in momentum.

However, the bulls are struggling to sustain the price above $270.15, which suggests a few weeks of consolidation or minor correction. 

We anticipate the bulls to provide support at $241.85. If this support breaks, it will weaken the momentum. On the other hand, if the price consolidates for a few weeks close to the current levels, it will indicate strength and will increase the possibility of a move to $306.78.

LTC/USD

Litecoin (LTC) rounded up the list of the top five performers of the past seven days with a rally of about 18%. Litecoin’s mining difficulty, which had dropped sharply in the second half of 2019, has begun rising again. This could spark a bull run in the altcoin, according to a few analysts. 

In other news, cryptocurrency lending company BlockFi has added support for Litecoin, which is positive. While the fundamentals point to an up move, do the technicals also support a rally? Let’s find out.

LTC USD weekly chart. Source: Tradingview

The breakdown from the $50 to $42.0599 range did not find sellers at lower levels. This shows that aggressive bulls used the fall to accumulate. The buyers are currently attempting to propel the price above the range.

If successful, the LTC/USD pair can move up to $66.1486. Though the 20-week EMA might act as a resistance, we expect it to be crossed. Both moving averages have flattened out and the RSI is gradually moving towards the center, which shows that the bears are losing their grip.

Our bullish view will be invalidated if the bulls fail to sustain the price above $50. In such a case, the pair might remain range-bound between $50 and $39.252 for a few more weeks. A break below this range will resume the downtrend.

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.

The market data is provided by the HitBTC exchange.

Original Article
Author: btcethereumadmin

The bounce off the first support levels on most major cryptocurrencies indicates a possible change in trend.

Safe haven assets were dumped on Jan. 8, on reports that the US-Iran conflict might not escalate to an all out war. Cryptocurrencies, which had surged alongside gold and oil with also retreated from two-month high. However, the positive sign is that most major cryptocurrencies have held their immediate support levels, which indicates buying on dips. This shows that the sentiment has changed from sell on rallies to buy on dips.

With the news-based rally out of the way, the focus will again shift to the fundamentals. A new law governing cryptographic password management came into force in China on Jan. 1 and some local media outlets have speculated that this law was enacted as a safeguard for the forthcoming release of China’s central bank digital currency (CBDC).

Daily cryptocurrency market performance. Source: Coin360

Christine Lagarde, the president of the European Central Bank (ECB), also said that the bank is reviewing the merits of issuing a CBDC to cater to the urgent need for fast and low-cost payments. This shows that the ECB might be close on the heels of China in terms of launching a CBDC, which is a huge positive.

BitPay chief commercial officer Sonny Singh believes that “unforeseen” events could propel Bitcoin to a new high during this year. While analysts have been positive for 2020, let’s see if Bitcoin and the other major altcoins show signs of having bottomed out.

BTC/USD

Bitcoin (BTC) turned down from $8,452.84 on Jan. 8. However, the pullback was short lived as the price is attempting to bounce off the downtrend line that had previously acted as a strong resistance. This is a positive sign. If the bulls can push the price above $8,452.84, it will signal the possible start of a new uptrend.

BTC USD daily chart. Source: Tradingview

The 20-day EMA is sloping up gradually and the RSI is in the positive zone, which suggests that bulls have the upper hand.

Our bullish view will be invalidated if the bulls fail to scale and sustain the BTC/USD pair above $8,452.84. The pair will turn negative if the price slips below the moving averages and the critical support at $7,000. Therefore, traders can keep a stop loss on the long positions at $6,800. We shall recommend trailing stops higher at the first available opportunity.

ETH/USD

The bulls have defended the 20-day EMA for the past two days, which is a positive sign. They will now try to carry Ether (ETH) to the $151.829 to $157.50 resistance zone. The moving averages are on the verge of a bullish crossover and the RSI is in the positive zone, which suggests that bulls have the upper hand.

ETH USD daily chart. Source: Tradingview

A breakout of the zone can propel the ETH/USD pair to $173.841. Traders can watch the price action closer to the $151.829 to $157.50 resistance zone and book partial profits if the bulls fail to scale it. However, if the momentum carries the price above the resistance, the stops can be trailed higher to protect the paper profits.

Our bullish view will be invalidated if the price turns around and sinks below the moving averages and $131.484. For now, the traders can retain the stop loss on the long positions at $122.

XRP/USD

XRP has given up most of the gains seen on Jan. 6. This is a negative sign as it shows a lack of buyers at higher levels. The price is currently attempting a bounce off the strong support at the 20-day EMA. The horizontal support at $0.20041 is also placed at this level, hence, we anticipate the bulls to defend the level aggressively.

XRP USD daily chart. Source: Tradingview

If the XRP/USD pair rises above the 50-day SMA, the bulls will attempt to carry the price to $0.2326. The flattening 20-day EMA and the RSI just above the 50 level suggests a range-bound action for a few days.

The pair will pick up momentum above $0.2326. Above this level, a rally to $0.31503 will be on the cards. On the other hand, if the bears sink the price below $0.20041, the pair can retest the strong support at $0.18339. We do not find a reliable buy setup yet, hence, we are not proposing a trade in it.

BCH/USD

The bulls defended the breakout level of $227.01 for four days, which is a positive sign. This shows buying on dips. Bitcoin Cash (BCH) has resumed its up move towards the target objective of $306.78.

BCH USD daily chart. Source: Tradingview

There is a minor resistance at $270.15, but we expect it to be crossed. The 20-day EMA is sloping up and the RSI is close to the overbought zone, which suggests that bulls are in command. We suggest traders trail the stops on their remaining long positions to $226. The stops can be tightened further after the price scales above $270.15.

Our bullish view will be invalidated if the BCH/USD pair turns down from the current levels and plunges below $227.01.

LTC/USD

Litecoin (LTC) has bounced off the moving averages, which is a positive sign. The moving averages are on the verge of a bullish crossover and the RSI is in the positive zone, which suggests that the bulls are in command.

LTC USD daily chart. Source: Tradingview

The altcoin has reached close to the overhead resistance at $50. If the bulls can scale the price above $50, a move to $60 and above it to $66 will be on the cards.

However, if the bulls fail to push the price above $50, the LTC/USD pair might remain range-bound for a few days. It will turn negative on a break below $42.0599. The traders can trail the stop loss on the long position to $42.

EOS/USD

EOS has bounced off the support at the moving averages, which is a positive sign. The bulls are attempting to push the price above the overhead resistance at $2.8695. If successful, a move to the downtrend line is possible.

EOS USD daily chart. Source: Tradingview

The downtrend line remains the critical resistance to watch out for. A breakout of this line will signal a change in trend. Therefore, the traders can keep the stop loss on the remaining long positions at breakeven. Our bullish view will be invalidated if the bears sink the EOS/USD pair below $2.5804.

BNB/USD

The bulls are attempting to defend the 20-day EMA. If successful, Binance Coin (BNB) might again attempt to move towards $16.50. The flattish 20-day EMA and the RSI just above the midpoint suggests a balance between the bulls and the bears. The advantage will tilt in favor of the bulls above $15.32.

BNB USD daily chart. Source: Tradingview

Conversely, a break below the 20-day EMA will tilt the advantage in favor of the bears and a drop to $12.98 is possible. Below this level, the next support is at $12.1111. The traders can retain the stop loss on the long position at $12.95.

BSV/USD

Bitcoin SV (BSV) has resumed its up move and has reached the target objective of $155. This level had previously acted as a stiff resistance, hence, we anticipate the bears to mount a strong defense once again.

BSV USD daily chart. Source: Tradingview

The 20-day EMA is sloping up and the RSI is in the overbought zone, which shows that bulls are in command.

If the price sustains above $155.38, the BSV/USD pair can move up to $188. The traders can watch the price action at the current levels and book partial profits close to it. The stops on the remaining long positions can be trailed higher to protect the paper profits.

XMR/USD

Monero (XMR) has been holding above the immediate support at $57.1199 for the past four days. The dips below this level have been bought aggressively by the bulls, which shows demand at lower levels.

XMR USD daily chart. Source: Tradingview

If the bulls can push the price above $60.2991, a move to $67.02 is likely. The short-term traders can ride this move higher by buying at $60.4 with a stop loss at $55. The upsloping 20-day EMA and the RSI close to the overbought zone suggests that bulls are in command.

Our bullish view will be invalidated if the price turns down from the current level and plummets below $55. Such a move can drag the XMR/USD pair to the next support at the 20-day EMA, which is at $52.50.

TRX/USD

About five cryptocurrencies have similar market capitalizations. Therefore, depending on their performance on any given day, the ranking keeps changing. Today, Tron (TRX) has again risen into the top ten list of cryptocurrencies by market capitalization.

TRX USD daily chart. Source: Tradingview

The TRX/USD pair has broken out of the descending channel, which is a positive sign. The moving averages are on the verge of a bullish crossover and the RSI is in the positive territory, which indicates that the bulls are in command.

If the price sustains above $0.015, a move to $0.0163957 will be on the cards. We anticipate this level to act as a stiff resistance. However, if the momentum can push the price above it, a move to $0.020 and above it to $0.0234 is possible. We will wait for the price to sustain above $0.0164 before proposing a trade in it.

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 HitBTC exchange.

Original Article
Author: btcethereumadmin

Profit booking seen at higher levels. However, if the major cryptocurrencies can bounce off their strong support levels, it will indicate strength.

The crypto markets continue to respond to the events happening in the United States-Iran conflict. Any sign of escalating tensions is boosting the crypto markets higher. Google Trends shows that the searches for terms “Bitcoin” and “Bitcoin Iran” have surged in the past few days. This shows that investors are considering Bitcoin as a safe haven asset, similar to gold.

A report released by analytics firm SFOX showed that Bitcoin had a very low correlation with traditional assets such as gold and stocks in the second half of 2019. This made it an attractive hedge in a portfolio. The report also observed that Bitcoin’s volatility in 2019 was lower than the previous year but still, it remained high compared to other asset classes. 

  Daily cryptocurrency market performance. Source: Coin360

The recent rally in most major cryptocurrencies has picked up momentum after the U.S. and Iran conflict escalated. This shows that the move is news-based. If the tensions show signs of cooling down, the crypto markets might give back some of the recent gains. The extent of the pullback from the recent highs will give us an insight into whether the markets have bottomed out or not. 

Nonetheless, for the short-term trader, the current volatility provides an opportunity to pocket some quick gains. The long-term traders can also participate but would have to ride the volatility until a sustained uptrend begins. Let’s analyze the charts and determine the critical levels to watch out for.

BTC/USD

Bitcoin (BTC) broke above the overhead resistance at $7,856.76 on Jan. 7, which triggered our buy suggested in an earlier analysis. The breakout also completed a double bottom pattern, which has a minimum target objective of $9,278.52. Above this level, the rally can extend to $10,360.89.

BTC USD daily chart. Source: Tradingview

However, the bears are unlikely to throw in the towel without a fight. Usually, every breakout from a long consolidation returns to the breakout level. If the retest of the breakout level — which in this case is $7,856.76 — holds, it will confirm that a bottom is in place and a new uptrend is likely. 

On the other hand, if the bulls fail to defend the support at $7,856.76, it will indicate weakness. Below $7,856.76, a drop to $7,000 is possible. For now, the traders can hold their long positions with stops at $6,800.

ETH/USD

Ether (ETH) broke above the 50-day SMA on Jan. 6 but is facing selling close to the $151.829 to $157.50 resistance zone. This shows that the bears are aggressively defending this zone. 

ETH USD daily chart. Source: Tradingview

If the ETH/USD pair bounces off the 20-day EMA, we anticipate the bulls to make another attempt to break out through the overhead resistance zone. If successful, a move to $173.841 is possible.

Conversely, if the bears sink the price below the 20-day EMA, a drop to $131.484 is possible. The traders can hold their long positions with stops at $122. 

XRP/USD

XRP surged above the 50-day SMA on Jan. 6. The 20-day EMA has started to turn up and the RSI has jumped into the positive territory, which suggests that the bulls have the upper hand.

XRP USD daily chart. Source: Tradingview

However, we anticipate the bulls to face stiff resistance at $0.2326. If the price turns down from this level, it is likely to find support at the 20-day EMA. A bounce off the 20-day EMA might offer a low-risk buying opportunity

Alternatively, if the bulls propel the price above $0.2326, a rally to $0.31503 is possible. The traders can wait for a bounce off the 20-day EMA or a breakout above $0.2326 before initiating long positions.

BCH/USD

Bitcoin Cash (BCH) has not been able to sustain the price above $241.85, which shows a lack of buyers at higher levels. The altcoin can now dip to $227.01. If the price bounces off this support, we expect the bulls to make another attempt to sustain above $241.85.

BCH USD daily chart. Source: Tradingview

The moving averages have completed a bullish crossover and the RSI is in the positive zone, which indicates that the bulls are at an advantage.

However, if the bears sink the price below $227.01, the BCH/USD pair can dip to the 20-day EMA. If this support also cracks, a fall to $192.52 is possible. The traders can hold their remaining long positions with a stop at $215.

LTC/USD

Litecoin (LTC) had risen close to $50 but could not scale above it. Profit booking by short-term traders has dragged the price towards the moving averages. If the altcoin bounces off the 20-day EMA, we expect the bulls to make another attempt to push the price above $50.

LTC USD daily chart. Source: Tradingview

If successful, a rally to $60 and above it to $66 is possible. Therefore, the traders can hold their long position with stops placed at $38. 

Contrary to our assumption, if the bears sink the price below the 20-day EMA, the LTC/USD pair will turn negative. 

EOS/USD

EOS broke above the overhead resistance at $2.8695 and came close to the downtrend line today. However, it could not break above the downtrend line and reversed direction from just below it. 

We anticipated the bears to mount stiff resistance at the downtrend line. Hence, we had suggested traders take partial profits on the long positions in our previous analysis.

EOS USD daily chart. Source: Tradingview

If the EOS/USD pair finds support at the 20-day EMA, we expect the bulls to attempt a break out of the downtrend line once again. If successful, a rally to $3.50 and above it to $4.24 will be on the cards. 

On the other hand, if the bulls fail to keep the price above $2.5804, a drop to $2.4001 is likely. The traders can trail the stop loss on the remaining long position at breakeven.

BNB/USD

Binance Coin (BNB) had broken out of the 50-day SMA on Jan. 6 but it could not pick up momentum. This shows a lack of demand at higher levels.  The price might now dip to the immediate support at the 20-day EMA.

BNB USD daily chart. Source: Tradingview

If the support holds, we anticipate the bulls to make another attempt to carry the BNB/USD pair to $16.50. The 20-day EMA has flattened out and the RSI is close to the center, which points to a balance between buyers and sellers.

A break below the 20-day EMA will tilt the advantage in favor of the bears. Hence, the traders can hold their long positions with a stop at $12.95.

BSV/USD

The bulls are attempting to keep Bitcoin SV (BSV) above $113.96, which is a positive sign. If successful, a rally to $140 and above it to $155 is possible. The 20-day EMA is sloping up and the RSI is in the positive territory, which suggests that bulls have the upper hand. 

BSV USD daily chart. Source: Tradingview

If the price breaks out and closes (UTC time) above $120, the traders can trail the stops on the long position to $108. On the other hand, if the price slips below $110, we anticipate the bulls to defend the 20-day EMA.

Our bullish view will be invalidated if the bears sink the BNB/USD pair below the 20-day EMA. 

XMR/USD

The sharp rally in Monero (XMR) had carried it above the overhead resistance at $57.1199. However, the bulls could sustain the level, which shows that the bears are selling aggressively at higher levels.

XMR USD daily chart. Source: Tradingview

The price can now drop to the 20-day EMA. If the level holds, we expect the bulls to make another attempt to scale and sustain above $57.1199. We will watch the price action close to the 20-day EMA before suggesting a trade in it.

Our bullish view will be invalidated if the bears sink the XMR/USD pair below the 20-day EMA. Such a move can drag the price back to $44.50.

ADA/USD

Cardano (ADA) has again made it to the top ten cryptocurrencies by market capitalization. The altcoin broke above the overhead resistance at $0.035778 on Jan. 06 but could not scale above the overhead resistance at $0.039.

ADA USD daily chart. Source: Tradingview

This shows that the bears are aggressively defending the higher levels. The ADA/USD pair is likely to find some support close to $0.035778 and below it at the 20-day EMA.

If the pair bounces off $0.035778 or the 20-day EMA, it might give a low-risk buying opportunity with a target objective of $0.042 and $0.046. However, if the pair breaks and sustains below the 20-day EMA, it might again dip to $0.0329526. 

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 HitBTC exchange.

Original Article
Author: btcethereumadmin

BlockFi CEO Zac Prince image via CoinDesk archives

Crypto lending startup BlockFi now supports litecoin and dollar-backed stablecoin USD Coin (USDC) on its platform, enabling users to earn interest on, trade and receive loans backed by the assets.

The initial annual percentage yield on the assets will be 8.6 percent for USDC and 3.78 percent for litecoin. 

In 2020, the company aims to add five to 10 new assets including USDC and LTC and is looking most aggressively at the top 20 cryptocurrencies by market capitalization and U.S.-domiciled dollar-backed stablecoins, said Zac Prince, BlockFi’s CEO and founder. USDC is the largest of these stablecoins. The company already supported LTC as collateral for loans and approved of the currency’s liquidity, volatility and overall track record. 

BlockFi also plans to develop a mobile app and the ability to send fiat wire transfers in the first quarter of this year. In Q2 2020, it will offer Automated Clearing House (ACH) payment capabilities and in the second half of the year BlockFi plans to launch a credit card that offers rewards in bitcoin. 

“Most of the cards that exist now are debit cards or pre-paid cards … for prime consumers in the U.S., the vast majority of spending takes place on credit cards,” said Prince. “This will be a premium credit card that can pass back a bitcoin cashback rate that is attractive with traditional premium cards.” 

Prince wouldn’t name the issuing bank for BlockFi’s credit card or which banks would be providing the ACH services, but the startup already works with Silicon Valley Bank, investment bank and brokerage Oppenheimer & Co, Silvergate Bank and Signature Bank. 

BlockFi has been providing fiat loans with bitcoin and ether collateral since the beginning of last year. In March, it launched its service offering to pay clients interest on their crypto, which it loaned out to institutions. The company has had to cut rates more than once because borrower supply has not been able to meet depositor demand.  

At first, depositors received 6 percent monthly and 6.2 percent in compound interest yearly.  In April, the company changed these rules for accounts with more than 25 bitcoin or 500 ether, saying they would get 6 percent monthly only on the part of their holdings below that threshold. In May, the maximum balance for which it will offer 6.2 percent annual interest dropped further to 250 ETH and, later on, to 5 BTC and 200 ETH. 

In December, the company made the terms more favorable to users, applying the 6.2 percent rate only to holdings lower than 10 BTC, with everything above that earning 2.2 percent annually. For ether, deposits below 1,000 ETH earn 4.1 percent annually and everything above only 0.5 percent. 

Disclosure Read More

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

https://www.coindesk.com/blockfi-adds-litecoin-usdc-to-its-product-suite

Original Article
Author: btcethereumadmin

BlockFi, a major cryptocurrency lending firm, has added two new assets to its offering, Litecoin and USD Coin.

Major cryptocurrency lending company BlockFi has added support for two new assets to its list of supported digital currencies.

According to a press release shared with Cointelegraph on Jan. 8, the firm has added major altcoin Litecoin (LTC) and USD Coin (USDC) — the dollar-backed stablecoin from major United States-based cryptocurrency exchange Coinbase. 

The new additions mean that BlockFi users can now trade and receive loans as well as interest with the aforementioned cryptocurrencies. Clients can earn monthly compounding interest through the BlockFi Interest Account (BIA). USDC carries an annual percentage yield (APY) of 8.6%, while Litecoin’s APY through the BIA is 3.8%.

Litecoin and USDC will also be available on BlockFi’s new trading platform, along with other major digital currencies like Bitcoin (BTC), Ether (ETH) and the Gemini Dollar (GUSD). 

Interest in crypto loans grows

As cryptocurrency markets continue to mature, new types of services and solutions involving digital assets continue to crop up. Cryptocurrency loans and lending began gaining traction during the 2018 bear market.

Crypto lending has grown more popular for several reasons, including low interest rates, an increase in the number of borrowers and investors for whom receiving crypto immediately is convenient, and a simplified system for borrowers i.e. individuals who did not qualify for a bank loan can still easily receive digital money. 

Additionally, crypto lending services allow long term holders of cryptocurrencies another avenue of capitalizing on their holdings, other than the “buy and hold” investment strategy. By offering their assets up for loans, they can receive interest rates that, in some instances, are far higher than those offered in the traditional banking sector. 

According to a recent analysis by Cointelegraph, the entire crypto loan industry is estimated to be worth nearly $4.7 billion, with demand for crypto loans rapidly increasing. 

In order to meet increasing demand in new jurisdictions, BlockFi recently received a money transmitter license in the U.S. state of Washington.

Original Article
Author: btcethereumadmin

An about-turn in mining difficulty for Litecoin could foretell a bull run for Bitcoin price as well, the statistician says, as markets continue pushing $8,000.

Bitcoin (BTC) could have its bull market induced by Litecoin (LTC) as the latter enters a bullish renaissance, noted statistician Willy Woo has forecast.

In a series of tweets on Jan. 6, Woo, well known in crypto circles as the creator of data resource Woobull, highlighted an upturn in Litecoin’s fortunes in recent weeks.

Woo: Litecoin difficulty “in recovery”

Specifically, it is the altcoin’s mining difficulty that has begun rising once more after more than six months of decline.

The difficulty is a measure of how much computing effort is required to process transactions on a cryptocurrency’s blockchain. A drop in price can make miners retire due to low profitability, which triggers a drop in difficulty. This, in turn, has implications for network security.

Litecoin difficulty vs. price, 2011-present. Source: Woobull

Woo said the second half of 2019 was “the largest miner capitulation LTC has ever faced.” Data from Woobull confirms difficulty dropping from over 16 million last July to just 4.7 million in mid-December.

Since then, the difficulty has begun improving, currently standing at 5.1 million. This, Woo says, could not only produce a bull run for Litecoin but spill over to fuel the already bubbling Bitcoin market.

“Litecoin Difficulty Ribbon now in recovery,” he wrote in further comments, adding:

“Should set up a bullish breakout of the bearish channel. I wouldn’t be surprised if LTC leads a bullish breakout of BTC.”

LTC major gains yet to appear

Litecoin launched in 2011 as a hard fork of the Bitcoin Core client and is currently the sixth-largest cryptocurrency by market cap.

Despite losing considerably in the altcoin collapse of 2018, the coin’s performance improved in 2019. As Cointelegraph reported, LTC/USD jumped from $32 to $141 in the first half of the year — frontrunning Bitcoin’s own leg-up that began on Apr. 1.

In November, Cointelegraph contributor Keith Wareing forecast “significant” incoming gains for LTC holders. In the event, markets hit $61 before declining to $37 before Christmas. At press time, Litecoin traded at $45 on 1.3% daily gains, modest compared to Bitcoin’s 5.5%.

Original Article
Author: btcethereumadmin

Several altcoins have made their first move from longtime lows and if Bitcoin is able to confirm a bottom, a marketwide rally is likely to pick up steam.

The price of an asset class is determined by its fundamentals and the sentiment towards it. At times of panic or exuberance, fundamentals take a back seat and sentiment dictates the price action. Currently, the US-Iran tension has sent investors scurrying towards safety. This has seen a move away from stocks and into assets that are considered safe havens.

However, it is unlikely to be a one-way move. There will be periods of calm that would be followed by statements from both parties that would reignite the conflict. Accordingly, the volatility will remain high as the market participants interpret and digest the news and events.

If the tension cools down, the price might give up some of its recent gains as the bulls and the bears again battle it out for supremacy. At this juncture, the fundamentals of the asset class will play a major role in setting the next course of direction.

Daily cryptocurrency market performance. Source: Coin360

For the next few days, the short-term traders might get several opportunities to ride the small rallies. We believe that traders should book profits intermittently instead of waiting for a large windfall profit. Let’s study the charts of the top cryptocurrencies and determine the best possible course of action.

BTC/USD

Bitcoin (BTC) has risen above both moving averages, which are on the verge of a bullish crossover. The RSI has also risen into the positive zone, which suggests that bulls have a slight advantage. The price can now move up to the overhead resistance at $7,856.76.

BTC USD daily chart. Source: Tradingview

If the bulls can carry the price above $7,856.76, the momentum is likely to pick up and a rally to $10,360.89 is possible. As the risk to reward ratio is attractive, we suggest traders initiate long positions as suggested in our earlier analysis.

However, if the bears defend $7,856.76, the BTC/USD pair might remain range-bound for a few more days. A break below $7,000 will be the first sign that bears are back in action. The downtrend will resume below $6,435.

ETH/USD

Ether (ETH) broke and closed (UTC time) above the resistance line of the symmetrical triangle on Jan. 5, which triggered our buy suggested in an earlier analysis. The price has reached the 50-day SMA, which might act as a minor resistance.

ETH USD daily chart. Source: Tradingview

If the bulls push the price above the 50-day SMA, the ETH/USD pair is likely to rally to the $151.829 to $157.50 resistance zone. We anticipate the bears to mount a strong defense of this zone, hence, traders can book partial profits close to the zone. For now, the traders can keep the stop loss on the long position at $122.

Our bullish view will be invalidated if the price turns down from the current levels and plummets below $125.841. Such a move will increase the possibility of a retest of the recent lows at $117.090.

XRP/USD

XRP has surged above the overhead resistance at $0.20041 and is attempting to scale above the 50-day SMA. The strength of the breakout from the tight $0.18339 to $0.20041 range suggests that the bulls have overpowered the bears.

XRP USD daily chart. Source: Tradingview

There is a minor resistance at the 50-day SMA, above which a rally to $0.2326 is possible. The flattening 20-day EMA and the RSI in positive territory suggest that the bears are losing their grip.

However, as the price has risen sharply, we suggest traders wait for a dip towards the breakout level of $0.20041 or a minor consolidation to happen before initiating long positions. Hence, we withdraw the buy proposed in an earlier analysis.

Contrary to our assumption, if the bulls fail to sustain the price above $0.20041, the bears will once again attempt to sink the price below $0.18339.

BCH/USD

After a minor consolidation for the past two days, Bitcoin Cash (BCH) has broken out of the overhead resistance at $227.01, which is a positive sign. The price is nearing the next resistance at $241.85. The traders can book partial profits at the current levels and trail the stops higher on the remaining long position to $215.

BCH USD daily chart. Source: Tradingview

If the bulls can push the price above $241.85, the next target is a move to $306.78. The moving averages are on the verge of a bullish crossover and the RSI is in the positive territory, which suggests that the bulls are in command.

Our bullish view will be invalidated if the BCH/USD pair turns down from the current levels and break below the moving averages.

LTC/USD

Litecoin (LTC) is attempting to break out of the 50-day SMA. If successful, it can move up to the overhead resistance at $50. The moving averages are on the verge of a bullish crossover and the RSI is in the positive zone, which suggests that bulls have the upper hand.

LTC USD daily chart. Source: Tradingview

If the bulls can scale the price above $50, a move to $60 is possible. However, if the price turns down from $50, the LTC/USD pair might remain range-bound for a few more days.

The traders can watch the price action close to $50 and book profits if the bulls struggle to break above it. However, if the price breaks out of $50, the traders can trail the stops higher to protect the paper profits. For now, the traders can maintain the stops on the long position at $38.

EOS/USD

EOS has risen close to the overhead resistance at $2.8695. The moving averages are about to complete a bullish crossover and the RSI is in the positive zone, which is a positive sign. This shows that bulls are in command.

EOS USD daily chart. Source: Tradingview

If the bulls can push the price above $2.8695, a rally to the downtrend line is likely. We anticipate the bears to defend the downtrend line aggressively, as the price has repeatedly turned down from it in the past few months. Therefore, traders can keep a close watch and book partial profits close to the downtrend line.

However, if the EOS/USD pair scales above the downtrend line, a move to $3.50 is possible. For now, the traders can keep the stop loss on the long positions at $2.40, which can be trailed higher after the pair rises above $2.8695.

BNB/USD

Binance Coin (BNB) has broken out of the overhead resistance at $14.5201 and held it for four hours. This has triggered our buy recommendation given in an earlier analysis. There is a minor resistance at the 50-day SMA, above which a rally to $16.50 is possible. The stop loss on the long position can be kept at $12.95.

BNB USD daily chart. Source: Tradingview

Contrary to our assumption, if the price turns down from the 50-day SMA and plummets back below $14.5201, it will be a negative sign. It will signal a lack of buyers at higher levels. The BNB/USD pair might thereafter remain range-bound for a few days. The downtrend will resume if the bears sink the price below the support at $12.1111.

BSV/USD

The bulls have propelled Bitcoin SV (BSV) above the overhead resistance at $113.96. This is a positive sign as it shows that the momentum favors the bulls. The moving averages have completed a bullish crossover and the RSI has risen close to the overbought levels, which suggests that the advantage is with the bulls.

BSV USD daily chart. Source: Tradingview

If the price sustains above $113.96, a move to $140 is possible. Therefore, the traders can trail their stop loss on the long positions to $102.

Our bullish view will be invalidated if the price turns down from the current levels and sustains below $113.96.

XLM/USD

Stellar Lumens (XLM) has broken out of the first overhead resistance at $0.047799. If the price closes (UTC time) above this level, it will trigger our buy recommended in the previous analysis.

XLM USD daily chart. Source: Tradingview

The 20-day EMA has flattened out and the RSI has risen into the positive territory. This suggests that the bears are losing their grip.

If the price continues its move northwards and breaks above $0.051014, a rally to $0.06 and above it to $0.088 is likely. Conversely, if the price fails to sustain above $0.047799, the XLM/USD pair might remain range-bound for a few more days. The pair will turn negative on a break below $0.042133.

XMR/USD

Monero (XMR) has made it to the list of top ten cryptocurrencies by market capitalization. This shows that the altcoin is finding favor from the bulls. The price broke out of a long-term descending channel on Jan. 03, which suggests that the downtrend might be over.

XMR USD daily chart. Source: Tradingview

However, the end of a downtrend does not automatically signal the start of an uptrend because, at times, the price consolidates in a range before starting a new uptrend.

Currently, the price has risen sharply from the lows of $44.50 and has reached the overhead resistance at $57.1199. A breakout of this level can propel the XMR/USD pair to $67. However, if the bears defend the resistance at $57.1199, the pair might remain range-bound for a few more days.

Though we are positive, we do not find a trade with a good risk to reward ratio, hence, we are not proposing a long position in it.

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 HitBTC exchange.

Original Article
Author: btcethereumadmin