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Cryptocurrency sales reduced total market capitalization to around $ 106 billion on December 7th. The crypto-market lost more than 87 percent of its value from the maximum reached at the end of 2017.
The last leg of sales strengthened with news that the US Securities and Exchange Commission (SEC) postponed the decision on the exchange-traded funds (ETF) Bitcoin (BTC) until February 27 next year.
Based on the directional movement index and average directional index, the Bloomberg Intelligence analyst Mike McGlone predicts that the Bitcoin will fall to $ 1500.
The fall has scared most retail investors. However, Morgan Creek Digital, an institutional director focused on cryptocurrencies, believes that its Digital Asset equity fund, a basket among the top ten crypts, will offer better returns than SPX over the next 10 years, from January 1, 2019. Morgan Creek Digital is ready to bet $ 1 million on its forecasts.
The bear market was good for the stable Tether currency, which continues to climb the ladder in terms of market capitalization. Now he is in sixth position, threatening to enter the top five if the sale continues.
Since Bitcoin SV, which has recently expanded from Bitcoin Cash (BCH), has a few trading days behind it, we will introduce it in our analysis starting today.
BTC / USD
Bitcoin has plummeted to a new low so far this year, but the decline still shows no signs of slowing down. The previous minimum of $ 3620.26 offered no support, which shows a lack of purchases at current levels. We hope the area of $ 3000 and $ 3500 will act as a stronger support.
However, if the BTC / USD pair falls below $ 3000, the fall can be extended to $ 2416.52, which is the goal of the model after the flag break.
The current situation is opposite to last year when operators expected the price to skyrocket. Now, most believe that digital currencies are condemned. We believe that the sale has been exaggerated and a stop line must be behind the corner.
Even so, we want to see evidence of a strong purchase in some kind of support before starting new long positions. Our previously suggested positions were closed at $ 3800 and $ 3500.
The lower the cryptocurrency falls, the closer it is to the base fund. Therefore, we suggest that traders are ready to start long positions on the signs of a probable fund. Unlike previous occasions, when we proposed to use only part of the normal position size, this time we recommend using the normal position size. The risk premium is becoming attractive at these levels.
XRP / USD
Ripple (XRP) is still above its minimum so far this year, but the price is fast approaching these levels. Currently, the price is in the support line of the downtrend channel, which is likely to be maintained.
A rebound from the current level will face resistance at $ 0.33108, and higher than the 20-day EMA. Conversely, if the bears break under the support, it is likely that a test of $ 0.24508 will be re-run.
We still like the XRP / USD pair because it outperformed many of the major digital currencies. Therefore, we suggest that traders keep their long positions. We will propose to add others when the pair changes course.
ETH / USD
Ethereum collapsed in double digits on 6 November and has not yet recovered. Currently, he is trying to rebound the support at $ 83. We hope some purchases in this area.
If bears keep their selling pressure, the ETH / USD pair may fall to the next support at $ 66. The sale was so intense that the RSI could not even get past the oversold zone, from deeply unsold levels.
The first sign of a likely change in the trend will be when the price remains above $ 100. Until then, it is better to wait and observe. We expect a strong withdrawal in the coming days.
XLM / USD
After a successful $ 0.184 defense, bass players have renewed their sale, bringing Stellar to new lows so far this year.
The next level to consider below is $ 0.08. Although we anticipate that the bulls will offer purchase support at this level, it is difficult to identify the underlying fund.
The XLM / USD pair will signal a probable minimum when it will remain above the bearish trendline. We hope it will consolidate for a few days before starting a new uptrend. Traders should expect a reversal of tendency before buying.
BCH / USD
Bitcoin Cash continues its journey south. In three days, the price dropped from an intraday high of $ 157.58 on December 4 to an intraday low of $ 104.99 on December 7th. Currently, bass players are trying to stay below the psychological support of $ 100, while the bulls want to keep the price in three figures.
If the bears manage to keep the BCH / USD pair below $ 100, the next bearish support is $ 91.78. The RSI has dropped to about 15 levels, which shows that the sale has been exaggerated and that an arrest line can start at any time. However, traders must wait for the decline to finish before entering. Until then, it is better to stay on the edge.
BSV / USD
While other cryptocurrencies are sliding towards new lows, Bitcoin SV is opposed to the trend. He is trying to turn around and go up.
The BSV / USD pair is currently in the range of $ 80.352 – $ 123.98. A break out of range gives you a target of $ 167,608, with a resistance of less than $ 150.47.
If bears defend general resistance at $ 123.98, the digital currency could consolidate for a few more days. Short-term traders may look for buying opportunities as long as the price remains above $ 80.352. Since the general feeling is negative, we suggest that practitioners maintain the position size of approximately 40 percent of normal.
EOS / USD
EOS is under a strong bearish attack. The fall was so severe that the $ 2 support level could not even stay for a day. The next downside support is $ 1.5257. However, with this kind of incessant sales, it is difficult to predict where the decline will end.
When the digital currency reaches new lows every day, the new money on the margins does not want to enter. In contrast, traders who have long been from higher levels, abandon their positions, since they can not bear losses. This vicious circle usually ends in capitulation.
After a prolonged fall, the price becomes so attractive that some aggressive bulls start the bottom fishing. We will wait for signs of purchase in the EOS / USD pair before becoming positive. Until then, it is better to wait and see.
LTC / USD
The bass players broke another critical support at $ 28. Litecoin can now drop to $ 20, where we expect the purchase to occur.
The trend is clearly in favor of the bears, since the bulls can not keep the price in a range.
The bulls will try to bring the price back into the range, while the bears will try to keep the momentum going down. If the bulls are successful, the LTC / USD pair could consolidate for a few days, before starting a new uptrend. Operators must wait for the formation of a new purchase configuration before starting any new position.
TRX / USD
TRON was broken down by the immediate support of $ 0.01339050. Your next support is November 25th low of $ 0.01089965. Moving averages have a downward trend and the RSI is in the negative zone, which shows that the sellers have an advantage.
However, we like the way the TRX / USD pair has not been reduced to new lows so far this year. This shows that the owners are not willing to sell at current levels and buyers support it just above the recent lows.
If the bulls defend $ 0.01089965, the digital currency could enter a basic formation. We will wait a few days before you confirm a final before suggesting a trade in this pair.
ADA / USD
Cardano's downtrend has resumed, as the pair reaches new lows this year. The next negative support is $ 0.025954.
Moving decreasing averages and RSI in the oversold area will continue to exert pressure on the ADA / USD pair. The first sign of a change in the trend will be when the price leaves the 20-day EMA and the maximum of the adjusted range of $ 0.455624. Until then, every fold will be sold. We suggest that traders wait for the trend to reverse before starting any long position.
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