Bitcoin price remains range bound and several major cryptocurrencies are attempting to break above the overhead resistance levels.
Traditional markets continue to post almost daily losses while Bitcoin price has been relatively range bound for the past week. At the risk of sounding repetitive, traders have to continue to focus on the events that are driving the various asset classes. The Coronavirus cases in Europe are not showing signs of flattening out and the number of cases in the US are surging at a rapid pace. This raises the uncertainty on how long and how much damage will this pandemic do before it is contained. As a result, the equity markets continue to be hammered down.
Due to strong measures like lockdowns, the economy will go through a slowdown. In order to support the economy, the United States Federal Reserve, central banks and governments continue to announce measures meant to boost investor sentiment. However, Morgan Creek Digital co-founder Anthony Pompliano said that this “is not sustainable long-term for a currency.”
Daily cryptocurrency market performance. Source: Coin360
Galaxy Digital founder Mike Novogratz expects Bitcoin to remain volatile over the next few months but he believes that it “will be and needs to be BTC’s year.” Binance US CEO Catherine Coley also noted that quarantine measures in Asia had driven trading volumes higher.
Coley said that the same could happen in the US if lockdowns are enforced. Coley explained that as the markets have matured over the past year, institutional investors could be looking to take advantage of the current low prices to make an entry into this space.
In today’s analysis, we have suggested several trades on the major cryptocurrencies. The traders can do their due diligence and stick to the ones which interest them. As the situation remains uncertain, volatile movements cannot be ruled out. Therefore, keep the position size only 40% of usual.
Let’s study the charts of the major cryptocurrencies to determine the ones that look strong?
BTC/USD
Bitcoin (BTC) turned down from the 20-day EMA at $6,835 on March 20. However, since then, the price has been consolidating close to the overhead resistance at $6,435. This is a positive sign as it shows that the bulls are not closing their positions in a hurry.
BTC USD daily chart. Source: Tradingview
Consolidation near the critical resistance increases the possibility of a breakout of it. Therefore, we anticipate the bulls to push the price above the 20-day EMA. If the BTC/USD pair can close (UTC time) above the 20-day EMA, it is likely to rally to the 50-day SMA at $8,435.70.
Therefore, we suggest traders buy on a close (UTC time) above the 20-day EMA and keep a stop loss at $5,600.
Contrary to our assumption, if the price again turns down from the 20-day EMA, a drop to $5,660 is possible. Below this level, a drop to $5,000 is likely.
ETH/USD
Ether (ETH) is currently trading between $117.090 and $155.612. A bounce off the support at $117.090 can carry the price to the resistance at $155.612. The 20-day EMA is also located close to this level, hence, we expect the bears to defend this level once again.
ETH USD daily chart. Source: Tradingview
If the price again turns down from $155.612, the ETH/USD pair will extend its stay inside the range. Nonetheless, if the bulls can push the price above $155.612, we anticipate a move to the 50-day SMA at $208.90.
Therefore, traders can buy on a close (UTC time) above $155.612 and keep the stop loss at $117. If this level cracks, a drop to $100 is possible.
XRP/USD
XRP turned down from $0.17595 on March 20. However, the bulls are attempting to keep the price above $0.1450. If successful, we expect the bulls to make another attempt to break above $0.17468.
XRP USD daily chart. Source: Tradingview
On a close (UTC time) above $0.17468, the XRP/USD pair can rally to $0.23532 and above it to $0.250. Therefore, the traders can buy on a close (UTC time) above $0.17468 and keep a stop loss at $0.140.
Contrary to our assumption, if the price turns down from $0.17468 once again, a drop to $0.145 is possible. A break below this level will tilt the advantage in favor of the bears.
BCH/USD
Bitcoin Cash (BCH) has been struggling to break above the 20-day EMA at $236. However, the positive thing is that the bulls have not given up much ground. We expect the bulls to make another attempt to break above the 20-day EMA and the resistance line of the descending channel.
BCH USD daily chart. Source: Tradingview
If successful, we expect a change in trend. Above the channel, a move to the 50-day SMA at $332 and above it to $400 is possible. Therefore, the bulls can purchase the breakout and close (UTC time) above the channel with a close stop loss at $196.
Contrary to our assumption, if the bulls fail to sustain the price above the channel, the BCH/USD pair might again dip down to $190 and below it to $166.
BSV/USD
Bitcoin SV (BSV) has been struggling to break above the 20-day EMA for the past three days. However, the positive thing is that the bulls have not given up much ground. This increases the possibility of a break above the 20-day EMA at $171.5.
BSV USD daily chart. Source: Tradingview
If the BSV/USD pair breaks out and closes (UTC time) above the 20-day EMA, it can move up to the 50-day SMA at $242. Above this level, the up move can extend to $326.8.
Therefore, we suggest traders buy on a close (UTC time) above the 20-day EMA with a close stop loss at $146. A break below this level will be a huge negative as it can drag the price to $120 and below that to $100.
LTC/USD
Litecoin (LTC) turned down just below the 20-day EMA on March 20. However, the bulls purchased the dip to $34.6001 levels, which is a positive sign. The bulls will now once again attempt to push the price above the descending channel.
LTC USD daily chart. Source: Tradingview
If successful, the LTC/USD pair can run-up to the 50-day SMA, which is likely to act as a resistance. If this resistance is crossed, the next level to watch is $80. Therefore, we retain the buy proposed in the previous analysis.
Contrary to our assumption, if the price turns down from the resistance line of the descending channel and plummets below $33, the advantage will turn in favor of the bears. Therefore, the stops can be placed at $33.
EOS/USD
EOS has roughly been trading between $2.1624-$2.4001 for the past three days. Though the bulls have not been able to break above this zone, we like that they have not given up much ground.
EOS USD daily chart. Source: Tradingview
If the bulls can scale above the zone and the 20-day EMA, it will be a huge positive and will open the doors for a rally to the 50-day SMA at $3.6. Therefore, the bulls can purchase on a close (UTC time) above the 20-day EMA with a stop loss of $1.85.
Our bullish view will be invalidated if the EOS/USD pair turns down from the 20-day EMA and plummets back below $1.85.
BNB/USD
The bulls are trying to keep Binance Coin (BNB) above the critical $12.1111 level. If successful, a retest of the 20-day EMA at $13.59 is possible. On breaking above the 20-day EMA, the up move can reach the downtrend line which is close to $17.
BNB USD daily chart. Source: Tradingview
However, as the risk to reward ratio is not attractive, we are not suggesting a trade in the BNB/USD pair.
Our bullish view will be invalidated if the price turns down from the 20-day EMA. In such a case, a drop to $10 is possible.
XTZ/USD
Tezos (XTZ) has formed an ascending triangle, which is a bullish setup. The price turned down from close to $1.955 on March 20 and found support at the trendline of the triangle. This suggests buying on dips.
XTZ USD daily chart. Source: Tradingview
If the bulls can carry the XTZ/USD pair above $1.955, it will complete the bullish setup. This pattern has a target objective of $2.9004. Therefore, the traders can buy on a close (UTC time) above $1.955 and keep a stop loss at $1.40.
Contrary to our assumption, if the pair turns down from $1.955 once again, it will extend its stay inside the triangle. The advantage will tilt in favor of the bears if the price breaks below the trendline.
LEO/USD
UNUS SED LEO (LEO) has gradually been moving up for the past few days, which is a positive sign. This shows that the bulls are keen to enter even at higher levels. Both the moving averages are sloping up and the RSI is in the positive territory, which shows that bulls have the upper hand.
LEO USD daily chart. Source: Tradingview
If the bulls can push the price above $1.04, it will complete an inverse head and shoulders pattern. This setup has a target objective of $1.27488 and above it $1.36. The traders can buy on a close (UTC time) above $1.04 and keep a stop loss of $0.90.
Contrary to our assumption, if the LEO/USD pair turns down from $1.04, it might remain range-bound for a few more days.
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.
