Bitcoin, Ethereum, Bitcoin Cash, Ripple, Stellar, Litecoin, Cardano, NEO, EOS: Price Analysis, March 12
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The market data is provided by the HitBTC exchange.
By early February, Bitcoin had plunged about 68 percent from its lifetime highs in mid-December. This fall affected Bitcoin’s popularity, as measured by the number of people searching for it on Google. In the first half of March, Google Trends shows that Bitcoin searches have fallen to their lowest levels since October of last year.
It isn’t necessarily a bad thing for the leading cryptocurrency. This shows that the euphoric phase has ended and some investors have fled the market. Now, only the most interested participants who have a greater conviction in the cryptocurrencies remain.
When prices don’t sustain below support levels on negative news, it is a sign that the bears are losing their grip. The early stages of a bull phase always cause worries. As and when prices recover, the ‘speculators’ will jump right back in.
Let’s see if we find any buy setups for the top coins.
The bears were unable to take advantage of the breakdown below $9,500 levels on Bitcoin on March 10. Prices quickly recovered on the next day, March 11, which shows strong buying support at lower levels.
Currently, the BTC/USD pair is trading at a critical level.
The level between $10,000 to $10,300 has resistances from the moving averages and the resistance line of the descending channel. Once the price breaks out and sustains above $10,300 for four hours, it can be purchased with a stop loss of $8,700.
The first target objective is a rally to $12,150 from where the cryptocurrency has returned on three previous occasions. If prices break out of this resistance, Bitcoin will start a new uptrend.
$654.02 has proven to be strong support on Ethereum. For the past three days, prices are trading inside a tight range of $745 to $654.
If the bulls break out of this tight range, the ETH/USD pair might rally to the $800 levels where it will face resistance from the 20-day EMA and the resistance line of the descending channel.
Once these two resistances are crossed, the next resistance will be at $900 from 50-day SMA. The cryptocurrency doesn’t offer a good risk to reward ratio to the swing traders, however, the intraday traders can buy once prices break out of the resistances for a quick profit.
In case of a breakdown of the range, a fall to $565 is likely.
Bitcoin Cash has held the $1,000 levels for the past three days. Yesterday, March 11, prices broke out of the $1,150 overhead resistance, but the bulls have failed to build on this move.
Right now, the BCH/USD pair is facing resistance at the downtrend line. Just above lies the 20-day EMA. The bears will defend the $1,150 to $1,200 zone. Once above it, we might see a move to $1,355, which is major resistance.
On the other hand, if the $1,000 level breaks down, the cryptocurrency can slide to $854.
Our buy call on Ripple did not trigger because it has held above the $0.73 levels for the past three days.
We expect the XRP/USD pair to remain range bound for a few days. If the sentiment in the crypto industry improves, a rally to the upper end of the range at $1.22 is possible. Traders can buy on a breakout of $0.85 and keep a stop loss of $0.72. This is a risky trade, hence, please trade with only 50 percent of your usual position size.
If the bears break below $0.73, Ripple can fall to $0.695 and then to $0.5627.
The price action in Stellar has been sluggish. The bears have not been able to take advantage of the breakdown below $0.32 levels. While we have been expecting a drop to $0.22 levels, the bulls have successfully defended the $0.25 levels.
Though the bulls are buying at the lows, they have not been able to push prices above $0.32.
We shall suggest a long trade on the XLM/USD pair once prices sustain above $0.32 levels for a couple of days.
Litecoin is also trading in a tight range for the past four days. As the price has reached the apex of the descending triangle pattern, the bearish setup is not valid anymore.
If the bulls break out of the downtrend line and the 20-day EMA, we can expect the LTC/USD pair to start moving towards $250 levels. Therefore, we recommend buying Litecoin on a close (UTC) above $200. The stop loss for the trade can be kept at $165.
On the other hand, if the price turns down from the present levels and breaks below $180 once again, a decline to $160 can be expected.
Cardano continues to trade in a small range as forecast in the previous analysis. As both the bulls and the bears are in a state of equilibrium, there is no trade setup.
One of the parties will exert their dominance within the next few days with a large range move. We should wait for it and then recommend a position.
At the moment, any up move is likely to face resistance at 0.0000246. Above this, the next resistance will be from the downtrend line and the 20-day EMA, which are at about the same level of 0.0000275. Once the ADA/BTC pair breaks out of this, it might start a new trend. Until then, we shall remain on the sidelines.
On the downside, the next support is at 0.00001690.
NEO is looking weak as the bulls have not been able to push prices above $93.5 level in the past four days. This shows lack of buying.
Now, if the NEO/USD pair breaks down of the $80 levels, it will complete the descending triangle pattern.
Though the pattern targets are way lower, we need to take it one step at a time. The immediate support is the February 06 lows of $63.62.
We will attempt a long trade if the cryptocurrency sustains above the $100 levels for a couple of days.
For the past four days, EOS is struggling to hold the support level. Failure of the bulls to bounce off strong support indicates weakness.
The bears will now try to break below the supports and push prices towards the $3.65 levels.
A breakdown will invalidate our view of a range formation in the EOS/USD pair.
The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.