Litecoin Investor

Litecoin creator Charlie Lee recently posited the concept of LTC miner pool donations to help boost funding.

Litecoin (LTC) founder Charlie Lee proposed mining pool donations as a new funding method for cryptocurrency development.  

“I think a better way to fund development is mining pools voluntarily donate a portion of the block reward,” Lee said in a tweet on Jan. 24, adding:

“How about Litecoin pools donate 1% (0.125 LTC) of block rewards to the @LTCFoundation? If every miner/pool does this, it amounts to about $1.5MM donation per year!”

With 1% donated on a consistent basis, Lee’s suggested solution would provide enough funding for Litecoin permanently going forward, Lee confirmed to Cointelegraph.

He explained:

“At current LTC price, 1% of block rewards is about 7x Litecoin Foundation’s yearly expenses. Even if a small percent of miners are generous enough to donate, the foundation would be able to put it to good use by funding developers to work on Litecoin Core, Mimble Wimble, LiteWallet, LN wallet, hosting the yearly Litecoin Summit, and pushing for adoption of Litecoin by merchants and users.”

Lee also confirmed such donations are voluntary, adding, “It wouldn’t be right if it wasn’t voluntary.” 

Funding issues

Garnering enough capital to run and operate a business can be difficult. The situation becomes more complicated when the business or project aims for decentralization. 

Rumors circulated in late 2019 regarding the Litecoin Foundation’s potential bankruptcy, which Lee denied in an Oct. 13 tweet. “Don’t listen to stupid fud and lies,” Lee said. “We have enough money to last 2 years.”

Lee’s 1% voluntary donation proposal comes after Bitcoin Cash (BCH) proponents Roger Ver and Jihan Wu suggested an “infrastructure funding plan,” requiring miners to pay 12.5% of block rewards to an operation in Hong Kong, Cointelegraph reported on Jan. 24. 

New concepts

In response to 51% attack concerns, Dogecoin merged its mining with Litecoin in 2014, enabling simultaneous mining of the two assets. Notably, this joint Litecoin and Dogecoin mining impacts Lee’s new mining pool donation concept. 

“Currently with merged mining of Dogecoin and other Scrypt coins, miners make 105%+ of block rewards,” Lee noted in a second tweet. “So 1% is a reasonably small amount to give back towards funding a public good.” 

Finally, Lee also toyed with the idea of miners choosing which Litecoin project their funds will go toward, asking the community for their opinions on his ideas as a whole.

“It’s important that miners can choose to support other Litecoin organizations as well,” he told Cointelegraph. “Miners should donate to the organizations that want to help out.”

Original Article
Author: btcethereumadmin

The bulls have held the immediate support level on most major cryptocurrencies, which is a positive sign. This suggests that the sentiment is to buy the dips.

The International Monetary Fund chief economist Gita Gopinath said in a panel discussion at the annual World Economic Forum (WEF) in Davos that Facebook’s Libra was a major trigger that made people reconsider the status of the dollar as the reserve currency of the world. Brazil’s Economy Minister Paulo Guedes, who was also a part of the panel, said that “the Libra episode is just evoking a future digital currency.”

In order to help policymakers understand the central bank digital currency (CBDC) better, the WEF in collaboration with some of the world’s major central banks and experts from over 40 institutions have created the CBDC Policy‑Maker Toolkit. This will help the central banks understand the pros and cons of a CBDC and guide them through its design. 

The WEF also announced the formation of a Global Consortium for Digital Currency Governance, which will provide a framework to regulate digital currencies, including stablecoins. This shows how the central banks and regulators around the world are gradually gravitating towards the new technology. 

Daily cryptocurrency market performance. Source: Coin360

Ripple CEO Brad Garlinghouse meanwhile hinted at an initial public offering (IPO) within the next 12 months. He believes that many other crypto and blockchain firms are likely to go down the IPO route in 2020. Some firms believe that public listings on traditional stock exchanges might attract institutional investors who have been slow to enter the nascent asset class due to various regulatory concerns.

Though the crypto space is witnessing a lot of activity on the fundamental front, the price is yet to share the enthusiasm. Let’s see if we find any buying opportunity after the recent weakness.

BTC/USD

Bitcoin (BTC) dipped below the 20-day EMA at $8,350 today but quickly turned around. This shows that the bulls are buying on dips rather than panicking and dumping their positions, which is a positive sign.

BTC USD daily chart. Source: Tradingview

If the bounce sustains, the BTC/USD pair can move up to the 200-day SMA at $8,966, which is likely to act as stiff resistance once again. However, if the bulls can push the price above the 200-day SMA and $9,200 resistance zone, a rally to $10,360.89 is possible. 

However, if bears defend the overhead resistance level, the pair might remain range-bound for a few more days. The flattening 20-day EMA and the RSI just above the midpoint also suggest a consolidation in the near term.

The pair will turn negative if the bears sink the price below the 20-day EMA and $7,856.76 support zone. Therefore, traders can keep the stops on their long positions at $7,600.

ETH/USD

Ether (ETH) has bounced off the strong support at $157.50. The 20-day EMA is placed just below this level. Hence, we expect the bulls to defend this support aggressively. The biggest altcoin is now likely to move up to $173.841.

ETH USD daily chart. Source: Tradingview

The 20-day EMA is flattening out and the RSI is slowly dropping towards the 50 levels, which suggests a range-bound action for a few days. The ETH/USD pair will pick up momentum after it breaks out of the $173.841 and $180 resistance zones.

Contrary to our assumption, if the bears sink the price below the 20-day EMA, there is minor support at $151.829. If this support also cracks, the ETH/USD pair will turn negative. Hence, traders can retain the stops on their long positions at $150.

XRP/USD

XRP had dropped below the neckline of the inverted head and shoulders (H&S) pattern today, which is a negative sign. The failure of the bulls to defend the critical support at the neckline shows a lack of buyers at these levels.

XRP USD daily chart. Source: Tradingview

The bulls are currently attempting to push the price back above the neckline. If successful, it will indicate that the current break below the neckline was a bear trap. The XRP/USD pair will pick up momentum on a break above the 200-day SMA.

Conversely, if the price fails to sustain above the neckline, a drop to $0.20041 is possible. If this support also cracks, the pair can decline to $0.18339. Traders can set a stop-loss on their long positions at $0.1995.

BCH/USD

Bitcoin Cash (BCH) turned down sharply on Jan. 23 and broke below the 20-day EMA at $303 today. However, buyers stepped in at $296.13, which is just above the 50% Fibonacci retracement level of the recent rally.

BCH USD daily chart. Source: Tradingview

The sharp bounce off the intraday lows indicates strong demand at lower levels. The bulls will now attempt to carry the price to $360. This level is likely to act as a stiff resistance once again. The 20-day EMA is flattening out and the RSI is just above the midpoint, which suggests a consolidation for a few days.

On the downside, there are a few support levels between $306.78 and $270.15. However, if these break down, and the bears sink the BCH/USD pair below $270.15, it will be a huge negative. We will wait for the current bounce to sustain before recommending taking a trade in it. 

BSV/USD

Bitcoin SV (BSV) turned down from the overhead resistance at $337.80 on Jan. 22 but bounced off the support at $236. This shows that the bulls continue to accumulate on dips to $236.

BSV USD daily chart. Source: Tradingview

The bulls will now attempt to carry the price to $337.80, which is likely to again act as a stiff resistance. If the price turns down from $337.80, it will remain range-bound for a few more days.

Contrary to our assumption, if the bears sink the pair below $236, a drop to $200 and below it to $173.66 is possible. We will wait for a reliable buy setup to form before proposing a trade in it.

LTC/USD

The failure to scale above $66.1486 dragged Litecoin (LTC) back to the critical support at $50. The long wick on the candle shows buying by the bulls at lower levels. This is a positive sign as it shows that buyers are keen to jump in at lower levels.

LTC USD daily chart. Source: Tradingview

We spot a developing cup and handle pattern that will complete on a break above the overhead resistance at $66.1486. This pattern has a target objective of $96.439.

However, if the bulls fail to push the price above $66.1486, the LTC/USD pair might remain range-bound for a few days. The pair will turn negative on a break below $50. We will wait for the price to sustain above the 20-day EMA before recommending a trade in it.

EOS/USD

The bounce from the 200-day SMA on Jan. 19 was short-lived, which is a negative sign. It shows a lack of demand at higher levels. EOS again dipped back to the 200-day SMA, which triggered our stop-loss on the remaining long positions kept at $3.4. 

EOS USD daily chart. Source: Tradingview

However, the bulls have again defended the 200-day SMA and are attempting a rebound. If successful, the buyers will attempt to carry the price to $4.24.

Conversely, if the bears sink the price below the moving averages, the EOS/USD pair can dip to $3. We will wait for a new buy setup to form before proposing a trade in it once again. 

BNB/USD

Binance Coin (BNB) continues to trade inside the $16.50 to $18.50 range. The bulls again bought the dip to $16.50 today, which shows demand at lower levels. This is a positive sign. The price might once again move up to $18.50, which is likely to act as a stiff resistance.

BNB USD daily chart. Source: Tradingview

A break above $18.50 is likely to push the price to the 200-day SMA at $20.23 and if this resistance is crossed, a move to $21.80 is possible. The longer the price stays inside the range, the stronger the eventual breakout will be. 

Conversely, if the bears sink the BNB/USD pair below $16.50, a drop to the next support at $14.5201 is possible. The traders can retain the stops on their long positions at $15.90.

XLM/USD

Stellar Lumens (XLM) has dipped to the 20-day EMA. This triggered our suggested stop-loss on the long positions at $0.056. If the altcoin bounces off the 20-day EMA, the bulls will attempt to push the price above the 200-day SMA.

XLM USD daily chart. Source: Tradingview

A move above $0.0665 is likely to attract further buying that can propel the price to $0.088708. On the other hand, if the bears defend the 200-day SMA, the XLM/USD pair might remain range-bound for a few more days.

The pair will turn negative on a break below the 20-day EMA. Below this level, a drop to $0.051014 is possible. We will wait for a new buy setup to form before suggesting a long position once again.

ADA/USD

Cardano (ADA) turned down from the overhead resistance at $0.0461161 on Jan. 23, which shows that the bears are defending this level aggressively. However, on the downside, the price is attempting to bounce off the 20-day EMA, which suggests accumulation by bulls at lower levels.

ADA USD daily chart. Source: Tradingview

If the buyers can push the price above $0.0461161, the ADA/USD pair is likely to pick up momentum and rally to $0.0560221. Therefore, we suggest traders initiate long positions as suggested in our earlier analysis.

Conversely, if the price again turns down from $0.0461161, it can dip to $0.040 and remain range-bound in this range for a few days. The pair will turn negative on a break below $0.040. 

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

Data shows Litecoin is not “digital silver” but a slight correlation between LTC and silver can provide insight into the digital asset’s future returns.

The start of 2020 has seen considerable gains in the cryptocurrency market as a whole. Recently, Bitcoin (BTC) price reached a 2-month record high crossing above the $9,000 mark as well as other cryptocurrencies such as Litecoin (LTC) reaching $62.80 which is the highest price seen since mid-November 2018.

Cryptocurrency market weekly overview. Source: Coin360

Cryptocurrencies’ volatile behavior is one of the main concerns raised by researchers and it complicates the argument that Bitcoin should be classified as a traditional investment asset and that it is a reliable store of value.

Amid those discussions, Bitcoin has been closely compared to gold, while Litecoin has been associated with being “the silver to Bitcoin’s gold.”

As reported by Cointelegraph, new data suggests that the actual correlation between Bitcoin and gold is not significant, as well as gold’s explanatory power of Bitcoin returns. Nevertheless, Bitcoin is still frequently compared to gold, particularly as a potential safe-haven asset.

Since October 2019, silver prices have approached new record-highs. But does the latest data support the argument that Litecoin is the silver of cryptocurrencies? Could Bitcoin instead of Litecoin be closer to silver than to gold?

Silver prices since October 2019. Source: BullionVault

Is Bitcoin or Litecoin price action closer to silver?

Our data — from May 2013 until December 2019 — shows that Bitcoin and Litecoin returns are very positively correlated (0.67) with 1 implying a strong positive correlation and 0 meaning that the assets are not correlated. A reading of -1 shows that the assets are completely inversely correlated.

Meanwhile, the correlation between silver and Litecoin returns is close to zero (0.026), which is similar to Bitcoin’s correlation with silver (0.0025).

We further analyzed the correlation between the lagged silver returns and the two assets. In other words, the correlation between yesterday’s silver returns and today’s Litecoin and Bitcoin returns were compared.

However, the results are even more discouraging, since both show negative correlations with the lagged silver returns. Bitcoin’s correlation was -0.03 while Litecoin’s was -0.05.

April 2013-December 2019 correlation between silver, Bitcoin and Litecoin returns and silver’s lagged returns

Analyzing the rolling correlations provides a wider view and each data point in the diagram above refers to the correlation of silver and Bitcoin returns (BTC/silver), and between silver and Litecoin returns (LTC/silver) over the last 30 days.

One can see that the correlation between Bitcoin and silver, and Litecoin and silver, is very similar across time during both negative and positive periods.

Rolling correlations between Bitcoin/silver, and Litecoin/silver from May 2013-December 2019

Hence, both Bitcoin and Litecoin have a small correlation and similar relationship with silver. Thus, the Litecoin as “digital silver” narrative is challenged by these very low correlation values. Moreover, it’s no surprise that Bitcoin has surpassed both Litecoin and silver as the best investment option over the past ten years.

Cumulative Bitcoin, Litecoin and silver returns from investments made between May 2013 and January 2020

The relationship between digital assets and commodities from 2018 and 2019

For investors, a closer look at these relationships over the short-term can help draw better insights for future investment strategies. In 2018, the correlation between silver for both assets is slightly higher than the first results from May 2013 to December 2019, albeit still very low. Bitcoin is correlated at 0.05 with silver and Litecoin is correlated at 0.09.

Whereas in 2019, Bitcoin and Litecoin had opposite correlations to silver with Bitcoin and silver correlation being 0.03 and the Litecoin and silver correlation being negative at -0.02. Even the correlation between Bitcoin and Litecoin returns is lower than in other samples (0.74).

Nonetheless, both results are very close to 0, which leads us to believe that the correlation between these assets is not representative enough to draw reliable strategies for investors.

Correlation in 2019 between Silver returns, BTC returns, and Litecoin returns 

Is silver a useful predictor of Litecoin and Bitcoin returns?

The data, however, suggests that silver returns may work as a predictor for future Litecoin returns. From the model employed, if silver’s return rose by 1% yesterday, we can expect that Litecoin returns may decrease by -0.232% today. This statistically significant result can lead investors to assume that silver returns may work as a predictor for future Litecoin returns in a negative way. Similar outcomes were not found in the case of Bitcoin, however.

The ability to predict prices has been the holy grail of financial markets, hence the importance of this relationship between returns. Even though both crypto assets show a very low correlation with silver, the results for the lagged returns shed some light on the relationship between silver and future Litecoin returns.

Looking forward, investors may want to look at silver returns to draw strategies when buying/selling Litecoin based on this past silver return’s analysis. However, any strategy has to consider the fast-changing crypto market environment and careful analysis over different time periods, which can cause different conclusions.

Nevertheless, these findings can help us to conclude that Litecoin as the digital equivalent of silver is far-fetched due to the low correlations. However, we do highlight the value of investigating the digital silver narrative by establishing a new connection between returns, which is crucial for investors.

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.

Original Article
Author: btcethereumadmin

Traders are taking a break after the most recent volatility which suggests that most major cryptocurrencies will remain range-bound for the next few days.

Recently Hiromi Yamaoka, the former head of payments and settlements at the Bank of Japan, said that Facebook’s Libra has forced central banks to research and consider issuing central bank digital currencies (CBDC). Currently China is leading the race in developing a CBDC but it appears that other nations are now attempting to play catch up.

In a press release, the Bank of England said that the central banks of Canada, the United Kingdom, Japan, the European Union, Sweden and Switzerland have joined hands with the Bank for International Settlements (BIS) to form a working group tasked with researching CBDCs. This group will “assess CBDC use cases; economic, functional and technical design choices, including cross-border interoperability; and the sharing of knowledge on emerging technologies.”

Daily cryptocurrency market performance. Source: Coin360

It is not only CBDCs, the governments and private companies are also working together to speed up the deployment of digital technologies in trade and commerce. These developments show that the technology is likely to be used extensively in various fields within the next few years. Circle CEO Jeremy Allaire believes that securitization of assets through tokenization will become much more realistic within the next two or three years.

The fundamentals of the asset class are improving on a daily basis. As these projects are still in early stages, the crypto prices might be slow to respond to it. However, the long-term prospects look encouraging. Let’s analyze the charts of the top cryptocurrencies to determine the next possible move.

BTC/USD

Bitcoin (BTC) is stuck between the 20-day EMA and the 200-day SMA. Both the moving averages are flattening out, which suggests a few days of consolidation. A strong bounce off the 20-day EMA will indicate buying on dips by the bulls.

BTC USD daily chart. Source: Tradingview

However, the next leg of the up move will start only after the bulls push the price above the 200-day SMA and $9,200 resistance zone. Above this zone, the rally can extend to $10,360.89, which is likely to act as a resistance.

Conversely, if the bears sink the price below the 20-day EMA, the BTC/USD pair can drop to the breakout level of $7,856.76.

We anticipate the bulls to defend this level aggressively. However, if this level cracks, the next level to watch out for is $7,000. The traders can hold their long positions with stops at $7,600.

ETH/USD

After the minor dip to $157.50, the bulls are attempting to push Ether (ETH) above the overhead resistance at $173.841. The upsloping 20-day EMA and the RSI in positive territory indicate that bulls are in command.

A breakout of $173.841 will challenge the 200-day SMA at $180. If this level is scaled, a move to $197.75 will be on the cards.

ETH USD daily chart. Source: Tradingview

However, if the bears defend $173.841 level aggressively, the ETH/USD pair might drop to $157.50 and remain stuck between these two levels for a few more days.

The pair will turn negative on a break below the $157.50 to $151.829 support zone. A breakdown of this zone will indicate weakness and can drag the price to $140. Therefore, the traders can protect their long positions with stops placed at $150.

XRP/USD

The bounce off the neckline of the inverted head and shoulders (H&S) pattern is struggling to stay above $0.2326. This shows a lack of buyers at higher levels. If XRP fails to climb above $0.24 quickly, the bears will again attempt to sink the price below the neckline.

XRP USD daily chart. Source: Tradingview

The 20-day EMA is placed close to the neckline, hence, this is likely to act as a strong support. However, if this support also cracks, the drop can extend to $0.20041. Though the stop loss on the long position is at $0.1995, we might suggest closing the trade early if the price sustains below the neckline.

On the other hand, if the bulls can sustain the price above $0.24, a move to the 200-day SMA is possible. A breakout of the 200-day SMA can carry the XRP/USD pair to $0.31503.

BCH/USD

Bitcoin Cash (BCH) has formed doji candlestick patterns for the past three days, which shows indecision among the bulls and the bears. However, the positive thing is that the altcoin is consolidating near the overhead resistance at $360.

BCH USD daily chart. Source: Tradingview

If the bulls can push the price above $360, a rally to $403.88 is possible. Above this level, the up move can extend to $480. The upsloping 20-day EMA suggests that bulls have the upper hand. We will wait for the price to sustain above $360 before suggesting a long position once again.

However, if the bulls fail to propel the price above $360, the BCH/USD pair might dip to $306.78 and remain range-bound for a few days. The pair will turn negative on a break below the 20-day EMA.

BSV/USD

Bitcoin SV (BSV) has closed in the green for the past three days, which is a positive sign. This shows that bulls are still buying it on dips. However, we anticipate the up move to face stiff resistance at $337.80.

BSV USD daily chart. Source: Tradingview

If the price turns down from $337.80, the BSV/USD pair might dip to $255.62. We anticipate the bulls to aggressively defend the $236 to $255.62 support zone. A breakdown of this zone will be a huge negative.

Contrary to our assumption, if the bulls can push the price above $337.80, the pair might pick up momentum and rally to $400 and above it to $458.74. We do not find a trade setup with a good risk to reward ratio, hence, we are not proposing a trade in it.

LTC/USD

Litecoin (LTC) has held the support at $55 for the past three days. This shows that bulls are buying on dips. However, the bounce off the support has not been strong as the price has not scaled above $60.

LTC USD daily chart. Source: Tradingview

If the price fails to climb above $60, the bears will attempt to sink the price below $55. If successful, a drop to the 20-day EMA at $53 is possible, which is likely to act as a strong support.

Conversely, if the LTC/USD pair rises above $60, the bulls will make another attempt to scale above the 200-day SMA to $66.1486 zone. Above this zone, a rally to $80.2731 will be on the cards. We will wait for a new buy setup to form before recommending a trade in it.

EOS/USD

The bounce off the 200-day SMA lacks strength. If EOS does not move up quickly, the bears will attempt to sink the price back below the moving averages. If successful, a fall to $3 is possible. Therefore, the traders can maintain the stop loss on the remaining long positions at $3.4.

EOS USD daily chart. Source: Tradingview

The upsloping 20-day EMA and the RSI in positive territory indicates that bulls are at an advantage. If the current rebound picks up momentum, the bulls are likely to carry the price to $4.24. A breakout of this resistance can result in a move to $4.8719, which is likely to act as a stiff resistance once again.

BNB/USD

Binance Coin (BNB) has again turned down from the overhead resistance at $18.50. This suggests that the altcoin might extend its stay inside the $16.50 and $18.50 range for a few more days.

BNB USD daily chart. Source: Tradingview

If the bears sink the price below $16.50, the BNB/USD pair might dip to the next support at $14.5201. Therefore, traders can protect their long positions with stops at $15.90.

On the other hand, a break above $18.50 can result in a move to the 200-day SMA and above it to $21.80.

XLM/USD

The bulls have failed to propel Stellar Lumens (XLM) above the 200-day SMA for the past five days. This shows that the bears are aggressively defending this resistance. The failure to break above the resistance is likely to attract profit booking from the short-term traders. If that happens, a dip to the 20-day EMA is possible.

XLM USD daily chart. Source: Tradingview

The 20-day EMA is sloping up and the RSI is in the positive zone, which suggests that the bulls have the upper hand. Therefore, we anticipate the bulls to defend the 20-day EMA aggressively.

If the bulls can scale above the 200-day SMA within the next few days, a move to $0.088708 is possible. The traders can retain the stops on their long positions at $0.056.

ADA/USD

Cardano (ADA) has broken out of the 200-day SMA and is attempting to rise above the overhead resistance at $0.0461161. If successful, the bulls are likely to carry the price to the next overhead resistance at $0.0560221. Therefore, we retain the buy recommendation given in the previous analysis.

ADA USD daily chart. Source: Tradingview

Contrary to our assumption, if the bulls fail to propel the price above $0.0461161, the ADA/USD pair is likely to dip back to the 20-day EMA. We anticipate the price to bounce off this support. Our bullish view will be invalidated if the bears sink the price below $0.040.

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 correction in most major cryptocurrencies is shallow, which suggests that the up move is likely to continue within the next few days.

The total market capitalization of the crypto space rallied from about $184 billion on Jan. 3 to a high of $250 billion on Jan. 19. That is a 35% gain within a short span of time. Usually, fast-paced rallies do not last long, hence, for the long-term health of the markets, it is better to have rallies with intermittent corrections.

Bitcoin has been following the Stock-to-Flow model fairly accurately. The model’s creator, an analyst known as PlanB, believes that the price of Bitcoin is likely to average around $8,200 until the halving event in May of this year. Thereafter, the model projects the price to shoot up to about $100,000 within two years. While the target is extremely bullish, only time will tell whether Bitcoin reaches there or not.

Daily cryptocurrency market performance. Source: Coin360

Australian micro-investment startup Raiz has received clearance from the Australian Securities and Investment Commission, the country’s financial watchdog agency, to offer Bitcoin fund services to its users. The proposed Bitcoin retail fund is likely to launch in the first half of this year and it will have 5% exposure to Bitcoin directly, with the rest being invested in exchange traded funds. Though the crypto portion is small, we like the way, the regulators are gradually opening up to Bitcoin.

The crypto markets have currently entered a corrective phase. Let’s look at the critical levels to watch on the downside that can provide support.

BTC/USD

The bulls scaled above the 200-day SMA at $9,036 on Jan. 19 but could not hold on to the gains. The price quickly turned down and Bitcoin (BTC) formed an outside day candlestick pattern, which suggests that bears are active at higher levels.

BTC USD daily chart. Source: Tradingview

The price can now dip to the 20-day EMA at $8,247, which is likely to act as a strong support. The upsloping 20-day EMA and the RSI in the positive territory suggest that bulls are in command.

If the price bounces off sharply from the 20-day EMA, the bulls will again attempt to carry the BTC/USD pair above the 200-day SMA. If successful, a rally to $10,360.89 will be on the cards.

Contrary to our assumption, if the bears sink the price below the 20-day EMA, a drop to $7,856.76 is possible. This is an important level to watch out for because if it breaks down, the next support is at $7,000. For now, the traders can retain the stop loss on their long positions at $7,600.

ETH/USD

Ether (ETH) broke above the overhead resistance at $173.841 on Jan. 18 and 19 but could not scale above the 200-day SMA at $182. This shows that the bears are aggressively defending the 200-day SMA.

ETH USD daily chart. Source: Tradingview

The price turned down sharply on Jan. 19 but found support closer to $157.50. This shows that bulls are using the dips to accumulate. 

With buyers emerging close to $157.50 and sellers near the 200-day SMA, the possibility of a range-bound action for the next few days increases. A break above the 200-day SMA can carry the ETH/USD pair to $197.75 while a break below $157.50 can sink the price to the 20-day EMA at $153. 

The pair will turn negative on a break below $151.829. Therefore, traders can retain the stop loss on the remaining long positions at $150.

XRP/USD

XRP could not pick up momentum after breaking out of the neckline of the inverted head and shoulders (H&S) pattern. The altcoin turned down from $0.25401, which shows a lack of demand at higher levels.

XRP USD daily chart. Source: Tradingview

The XRP/USD pair has bounced off the neckline of the bullish setup, which suggests that bulls are using the dips to accumulate. The 20-day EMA is placed just below the neckline, hence, this level is likely to act as a strong support. If the bulls can carry the price above the 200-day SMA, a move to $0.31503 is possible.

Conversely, if the bears sink the price below the 20-day EMA, a drop to $0.20041 is possible. For now, the traders can keep the stop loss on the long positions at $0.1995.

BCH/USD

Bitcoin Cash (BCH) rallied above the overhead resistance at $360 on Jan. 17. The bulls again pushed the price higher on Jan. 18 but could not reach our target objective of $423.40. The price turned down from $403.88.

BCH USD daily chart. Source: Tradingview

The reversal on Jan. 18 dragged the price back below $360, which shows aggressive selling at higher levels. Currently, the price is stuck between $306.78 and $360.

If the bulls can push the price back above $360 a retest of $403.88 and above it $423.40 is possible. On the other hand, a break below $306.78 can drag the price to $270.15. 

In our previous analysis, we had suggested traders trail the stops on the remaining long positions higher after the price broke above $360. We anticipate the trailing stops have been hit. The traders can wait for a new buy setup to form before initiating long positions again.

BSV/USD

Bitcoin SV (BSV) dipped below $255.62 on Jan. 18 but found support at $236, which is just above the 61.8% Fibonacci retracement level of the rally from $77.203 to $458.74. The bulls are currently attempting to resume the up move.

BSV USD daily chart. Source: Tradingview

We anticipate the BSV/USD pair to hit a roadblock close to $335. If the price turns down from this level, the pair is likely to consolidate for a few days before making its next directional move.

Our view will be invalidated if the price turns down from the current levels or the overhead resistance and dips below the 20-day EMA at $214. As we expect a range-bound action for the next few days, we suggest traders remain on the sidelines.

LTC/USD

Though Litecoin (LTC) rose above $60 on Jan. 17, 18 and 19, the bulls could not scale above the 200-day SMA and reach $66.2486. This shows that the bears are aggressively defending the 200-day SMA.

LTC USD daily chart. Source: Tradingview

The price can now dip to the 20-day EMA, which is likely to act as a strong support. A strong bounce off the 20-day EMA can carry the price to the 200-day SMA once again. If the bulls can scale above the 200-day SMA and $66.1486, a move to $80.2731 will be on the cards.

Our view will be invalidated if the bears sink the LTC/USD pair below the 20-day EMA and the support at $50. A break below $50 will be a huge negative. 

EOS/USD

EOS turned down from $4.0623 on Jan. 17 but found support at the 200-day SMA at $3.42 on Jan. 19. This is a positive sign as it shows that bulls are buying on dips. The bulls are currently attempting to resume the up move.

EOS USD daily chart. Source: Tradingview

If the bulls can build up on the current bounce, we expect another attempt to scale above $4.24. If successful, a move to $4.8710 will be on the cards.

On the other hand, if the rebound attempt fizzles out, the EOS/USD pair can dip to the 200-day SMA once again. Below this level, a drop to $3 is possible. Therefore, the traders can retain their stops on the remaining long positions at $3.4.  

BNB/USD

Binance Coin (BNB) is currently range-bound between $16.50 and $18.50. The bears defended the $18.50 levels aggressively between Jan. 17 and 19. Subsequently, the bulls purchased the dip to the strong support at $16.50 on Jan. 19.

BNB USD daily chart. Source: Tradingview

This suggests that the price might consolidate between $16.50 and $18.50 for a few more days. A break above $18.50 can carry the price to the 200-day SMA and above it to $21.80.

On the other hand, a break below $16.50 and the 20-day EMA at $15.94 can sink the price to $14.5201. Therefore, traders can keep the stop loss on the long positions at $15.90.

XLM/USD

Stellar Lumens (XLM) has again found a place in the top ten list. For the past two days, the bulls failed in their attempts to push the price above the 200-day SMA. However, the positive thing is that the altcoin has not given up much ground, which shows buying on dips.

XLM USD daily chart. Source: Tradingview

If the bulls can propel the price above the 200-day SMA, the XLM/USD pair is likely to extend its up move to $0.088708. The traders who had purchased on our earlier recommendation can keep the stops on their long positions at $0.056.

If the bulls fail to push the price above the 200-day SMA, the bears will attempt to sink the price to the 20-day EMA, which is likely to act as a strong support. The pair will turn negative on a break below $0.051014.

ADA/USD

Cardano (ADA) is the other new entrant in the list. The bears are aggressively defending the overhead resistance at $0.0461161. The 200-day SMA is also placed just below this level, hence, this is an important level to watch out for. If the bulls can scale the price above $0.0461161, the altcoin is likely to pick up momentum.

ADA USD daily chart. Source: Tradingview

On a break above $0.0461161, the ADA/USD pair can rally to $0.0560221. With the 20-day EMA sloping up and the RSI in positive territory, the advantage is with the bulls. The traders can wait for the price to close (UTC time) above $0.0461161 before initiating long positions. The initial stop loss can be placed just below the 20-day EMA at $0.039.

Our bullish view will be invalidated if the price turns down from the current levels or the overhead resistance and breaks below the 20-day EMA. 

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

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