It appears Bitcoin’s troubles are far from the over. The number one cryptocurrency has been enduring a difficult few days. BTC has so far declined by almost 18 percent in the last seven days.
Bitcoin Falls Below $6,500
BTC slipped further on June 13, falling below the $6,500 mark. This latest pullback follows the significant drop over the weekend that saw it lose 10 percent in a matter of hours on June 10. Bitcoin is currently at its lowest price level since April is trading at $6,450 according to CoinMarketCap. The number cryptocurrency has experienced four sharp price drops within mere hours since June 10. This bear run has seen BTC dip by more than 50 percent since the start of 2018.
Reasons for the Decline
In the immediate aftermath of the initial price drop on June 10, mainstream media sources claimed the dip was due to the Coinraill hack. The coincidental timing between the price decline and the announcement of the hack on the South Korea-based exchange platform likely led to those conclusions. However, such notions have since been debunked. To begin with, BTC wasn’t stolen in the Coinrail hack. Secondly, the platform doesn’t rank among one of the top exchanges in the market. Thus, it is unlikely that the $42 million hack had much to do with the recent price drop.
According to Mati Greenspan on eToro, the reduction in prices currently seen in the market is most likely due to a market correction, saying:
The narrative that such a small hack caused such a large price reaction has definitely been overplayed.
Some commentators also identified price manipulation as the probable cause of the BTC price decline. Recently, the U.S. Department of Justice (DOJ) opened investigations into alleged shady trading practices in the Bitcoin market. The DOJ in collaboration with the Commodity Futures Trading Commission (CFTC) is investigating allegations of spoofing and wash trading in the cryptocurrency market. The U.S. government recently demanded that four major crypto exchange platforms hand over information on their operations.
Cryptocurrency Market is Bleeding
Bitcoin isn’t the only cryptocurrency facing significant price troubles at the moment. Ethereum, the second-ranked cryptocurrency has gone below the $500 mark and is now trading at $475. EOS continues its spectacular fall – failure to reach voting consensus is delaying mainnet launch, and the price is in free-fall. EOS has maintained double-digit percentage losses over the past four days. It has declined 40 percent in the last one week.
Litecoin and Dash are two other cryptocurrencies that are having a rough time of it. Litecoin, the sixth-ranked coin is currently trading below $100, its lowest price level since mid-December 2017. As for Dash, it has been in free-fall since the start of the year, losing 300 percent in the process – reaching a one-year low.
EOS, Tron (TRX), Litecoin (LTC), Stellar Lumens (XLM), Cardano (ADA) Price Analysis
Losses are steep in EOS and this is partly because of block producer centralization claims and the uncertainty around Dan Larimer commitment. But while we expect bears to slow down, Tron is stable and up 22 percent in the last week. In fact, it could break and close above 1.5 cents main resistance line igniting buyers aiming at 3 cents.
EOS Price Analysis
The EOSIO network might be one of the fastest smart contracting platforms around but with a DPoS consensus algorithm introducing block producers or super nodes, the networks representatives now has to defend the blockchain from centralization criticism.
StartEOS is vote buying, sharing their block rewards to EOS tokens holders that vote for them. Let's see how long it takes for them to drop out of top 21? Vote decay takes a bit but already we can see their rank dropping since news starting coming out #3 https://t.co/wtxsCfkIsW pic.twitter.com/EHQMvY7IPu
— Token State (Tokenize the World) (@tokenstate) December 4, 2018
Read: EOS Centralization Woes Return as Block Producer Offers Money for Votes
Price wise and EOS slide to $1.5 would be faster more so if bears keep up with yesterday’s six percent losses. This was expected and as long as EOS/USD is stuck below $4 then we recommend trading in line with our previous trade plans, unloading EOS on every pull back. Thereafter we shall fade this plan once there are solid gains above $3.5—a level of importance in our analysis.
Litecoin (LTC) Price Analysis
Thing is, sellers have an upper hand and though LTC/USD is now trading 90 percent from their 2017 peaks, we expect prices to find support as long as LTC is trading above $30.
At the moment, our previous trade plan is valid and before we recommend buys, we suggest patience until after there is convincing evidence of bulls involvement once there is a clear break and close above Nov 25 highs at $35.
Also Read: CoinBase and PayPal – A Match Made in Crypto Heaven?
Once this prints, then it could be an impetus for bulls to rally towards $50—our main resistance level as LTC/USD buyers bid to reverse 2018 losses.
Stellar Lumens (XLM) Price Analysis
Calgary’s NDAX is now the first Canadian exchange to avail the XLM/CAD pair.
NDAX has launched an XLM/CAD pairing. NDAX is making it easier for Canadians to diversify their cryptocurrency investments by being a leader in listing new Crypto/CAD pairings.#CryptoNews #cryptocanada #CAD $XLM $XRP $BTChttps://t.co/cN7LWS9OPd
— NDAX (@ndaxio) December 4, 2018
Even with this, XLM is struggling against sellers finding caps at around 20 cents and further losses that will see prices sink below Nov 2018 lows automatically invalidates our previous XLM/USD price analysis. Like before, if there are declines below 15 cents confirming Nov24 losses then Lumens might test 7 cents or May 2017 highs by the end of the year.
This may print if bulls fail to penetrate 25 cents endorsing the bear break out meltdown of week ending Nov 25.
Cardano (ADA) Price Analysis
Perched at 10th, ADA/USD is one of the top performers in the top 10 adding five percent in the last week. This may appear positive but ADA is this year’s worst performers as bears have so far erased 2017 gains.
What’s worse is that we might end up registering new 2018 lows more so if there are drops below Nov 25 lows at 3.3 cents as bears deflate our bullish outlook cancelling the Morning Star in the pattern.
Like in previous ADA/USD trade plans, we suggest taking a neutral but bearish stand, buying ADA once there are high-volume bars closing above 4.5 cents. This shall trigger a wave of aggressive buyers aiming at 6 cents and later 9.5 cents as per our previous iterations.
Tron (TRX) Price Analysis
TRX is up 22 percent in the last week and as TRX/USD find support, we might see the cancellation of the bear breakout pattern set in motion by Nov 19-20 break below.
Ideally, we would like to see a spike in trading volumes accompanying any surge above 1.5 cents in line with our last TRX/USD trade plan.
In that case, our first target will be at 3 cents with a safe stop at the lows of the breakout bar.
All Charts Courtesy of Trading View
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.
Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, Monero, TRON: Price Analysis, October 19
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.
Retail investors tend to run for cover when the market falls, whereas the professionals get their buy list ready to take advantage of the bargain prices. Though the trading volumes have been falling in the past few months, the merger and acquisition (M&A) activity is on an upswing.
Recently, Goldman Sachs and Mike Novogratz, CEO of Galaxy Digital, invested $15 million in the crypto custody service BitGo. Data from PitchBook, compiled by JMP Securities, shows that there are likely to be 145 crypto- and blockchain-related deals by the end of this year, well above the previous year’s count of 47.
Price-wise, some analysts believe that the calm in the markets is about to end. They expect Bitcoin to take a decisive direction within the next 1–2 weeks. Do the charts point to a potential breakout or a breakdown? Let’s find out.
Bitcoin has failed to break out of the overhead resistance at $6,831.99, resulting in a move down. Currently, the price is at the moving averages, which might act as a support. However, if the bears break this level, the digital currency can slide to the next lower support at $6,250.
A lack of follow-up buying after the surge on Oct. 15 is a bearish sign. It shows that the market participants are in a hurry to close their positions during every small rally. Both moving averages are flat and the RSI is close to the midpoint. This points to a consolidation in the near-term.
The BTC/USD pair can remain range bound between $5,900–$6,832 for the next few days. A breakout or breakdown of this range will start the next directional move.
On the upside, the bulls should watch the levels of $7,400 and $8,400. On the downside, a break of $5,900 will trigger panic selling among the participants, plunging the price to $5,450, and further to $5,000 in a short time.
We suggest traders close their long positions if the pair breaks the support at $5,900.
Ethereum remains weak. It might retest the bottom of the range of $192.5–$249.93. If the bears succeed in breaking down of the range, a retest of a Sept. 12 low of $167.32 is probable.
Any attempt to pull back will face a stiff resistance at the moving averages and above that at $249.93. The ETH/USD pair will show signs of strength if it sustains above the range.
The traders should wait for a breakout and close (UTC time frame) above $250 to initiate any long positions. Until then, it is best to remain on the sidelines.
Ripple has marginally dipped below the 20-day EMA, which shows profit booking at higher levels. Both moving averages remain flat and the RSI is close to the neutral territory. This points to a consolidation in the short-term.
The XRP/USD pair will become negative on a breakdown of the support at $0.37185. On the upside, it has a slew of resistances at $0.5, $0.55 and $0.625. It will resume its uptrend if it sustains above $0.625. We don’t find any reliable buy setups at the current levels; hence, we are not suggesting any trades on the pair.
A lack of buying has pushed Bitcoin Cash to the support line of the symmetrical triangle. A breakdown of the triangle will resume the downtrend and sink prices to $300 with a minor support at the Sept. 11 intraday low of $408.0182. Therefore, traders should protect their long positions with the stops at $400.
The 20-day EMA has started to turn down after remaining flat for the past few days. The RSI is also in the negative territory. This shows sellers have the upper hand. The BCH/USD pair will show signs of strength if the bulls break out of the triangle.
There is nothing much happening in EOS as it continues to trade close to the moving averages. It has been trading inside the range $4.4930–$6.8299 for the past two months. The flat moving averages and the RSI in the neutral territory suggest equilibrium between the buyers and the sellers.
The buyers will have an upper hand if they succeed in pushing the EOS/USD pair above the overhead resistance of $6.8299. A break down of the support zone at $3.8723–$4.49 will tilt the advantage in favor of the bears. Therefore, the traders holding long positions should keep a stop loss of $4.9.
Stellar broke out of the overhead resistance at $0.24987525 on Oct. 17 and 18. However, on both occasions, the bulls could not sustain the higher levels.
We remain positive on the XLM/USD pair because it continues to trade above both moving averages, which are starting to turn up. If the bulls break out and close above the overhead resistance, it will invalidate the bearish descending triangle, which is a bullish sign. Therefore, we retain our buy suggested in the previous analysis.
On the downside, the digital currency will find buying support at the moving averages. Any break of this support can retest the zone between $0.204 and $0.2148.
Litecoin continues to trade below both moving averages, which is a negative sign. A break below $52 can result in a drop to the bottom of the range at $49.466. This will be the fourth visit to the bottom of the $49.466–$69.279 range since Aug. 14.
If the bears break down and close below the range, a fall to the next lower support of $40 is probable.
The LTC/USD pair will signal a change in trend only after a breakout and close (UTC time frame) above the range. We believe the traders should wait for a break out of the range before initiating any long positions in it.
Cardano turned down from the 50-day SMA on Oct. 17. It is likely to find some support at $0.069, below which it can drop to the critical support at $0.060105.
Both moving averages are flat and the RSI is inching towards the neutral territory. This shows a balance between both the buyers and the sellers.
The ADA/USD pair will pick up momentum if it scales above the overhead resistance at $0.094256 and $0.111843. We don’t find any buy setups at the current levels; hence, we are not proposing any trades.
After failing to scale above the moving averages in the past few days, Monero has again dipped below the support of $107.8. It can now slide to the next support at $100, below which a drop to $81 is possible.
Both moving averages are flat and the RSI is in the negative territory. This shows the probability of a consolidation in the near-term.
The XMR/USD pair can move up to $128.65 if it scales above the moving averages. We shall wait for a new buy setup to form before suggesting any trades.
TRON has been holding above the 20-day EMA for the past four days, which is a positive sign. It will indicate a change in trend if the bulls break out and close (UTC time frame) above the overhead resistance at $0.02815521.
The traders can buy a close (UTC time frame) above $0.03 with a target objective of $0.41. The initial stop loss can be kept at $0.02, which can be raised later.
The TRX/USD pair will weaken and sink to $0.02 if it breaks below the moving averages. We don’t find any trade inside the $0.0183–$0.02815521 range.
Bitcoin (BTC/USD) forecast and analysis on September 27, 2018
Cryptocurrency Bitcoin (BTC/USD) is trading at 6394.61. Quotes of the cryptocurrency are traded below the moving average with a period of 55, indicating a bearish trend for Bitcoin. At the moment, the quotes of the cryptocurrency are moving near the lower border of the bands of the Bollinger Bands indicator. A test of the level of 6540.00 is expected, from which one should expect an attempt to continue falling and further development of a downward trend with a target near the level of 6000.00.
Bitcoin (BTC/USD) forecast and analysis on September 27, 2018
The conservative sales area for Bitcoin is located near the upper boundary of the Bollinger Bands strip at 6820.00. The abolition of the variant of the continuation of the Bitcoin fall will be the breakdown of the upper boundary area of the Bollinger Bands indicator strips, as well as the moving average with the period of 55 and the closing of the pair quotes above the 7000.00 area, which will indicate a change in the trend in favor of the bullish for BTC/USD. In the event of a breakdown of the lower boundary of the bands of the Bollinger Bands indicator, it is expected to accelerate the fall.