Bitcoin, Ethereum, Ripple, EOS, Litecoin, Bitcoin Cash, Binance Coin, Stellar, Tron, Bitcoin SV: Price Analysis, March 4th
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The market data is provided by the HitBTC exchange.
The market tends to alternate between periods of low and high volatility. After a week of small price ranges, the range was expanded on Monday and the crypto markets decided to move south. What caused this sudden fall? There are no specific fundamental reasons that could have led to this sell-off.
One of the possibilities could be the stronger dollar, which has risen over the past four days. As a result, gold also fell sharply on Friday.
This shows that traders like to take risks. Traders want to keep the assets that are showing a strong uptrend. The US markets have been moving for ten weeks. Positive news about the US-China trade deal may have encouraged some short-term traders to make profits in cryptocurrencies and move into the stock markets.
While the current decline will dampen sentiment, it will not change the overall structure of most major cryptocurrencies. They remain in a basic formation and will continue to be volatile over the period.
BTC / USD
After six days of small-range trading, the range has widened downward, which is a negative sign. Bitcoin (BTC) fell below the 20-day EMA and is currently close to the 50-day SMA. The downtrend line is also at this level. This line had previously acted as a strong resistance, so it will now act as a strong support.
A breakdown of this critical support can drop the BTC / USD pair to the nearest support at USD 3,355, and if it is also not held, the final support on the downside is USD 3,236.09. A new annual low will resume the downtrend.
Conversely, if the price finds support at the current level, it will try again to move above $ 3,900 to hit $ 4,255. An outbreak of this critical resistance indicates that a floor has been created. The next few days are critical. Traders can keep the stop loss on their long positions below $ 3,236.09.
ETH / USD
Ethereum (ETH) broke down the 20-day EMA and went back to the 50-day SMA. Failure to bounce off the 20-day EMA is a negative sign. If the 50-day SMA fails to contain the decline either, the next downside support is $ 116.3. Therefore, traders should maintain a stop loss of $ 125 on the remaining long positions.
Conversely, if the ETH / USD pair rebounds from current levels, it will attempt to move above USD 145 and hit the critical overhead resistance of USD 167.32. The pair will gain momentum above this level. Currently, both moving averages are flat and the RSI is just below the 50 levels. This indicates a short-term area-bound trade.
XRP / USD
The ripple (XRP) has dropped below the moving averages. It slipped back to the support at $ 0.2950. This is the fourth time the price has fallen to these levels.
Repeated retests of a support level increase the likelihood of failure. When this support breaks the next level to look down is $ 0.27795. The bulls held this support twice: once in mid-December last year and again in late January 2019.
Hence this is a critical level. A breakdown could drop the digital currency to its yearly low of $ 0.24508.
If buyers get in at the current levels, the XRP / USD pair can move as high as $ 0.33108. A breakout and close above this level is likely to drive the pair to the resistance line of the descending channel near USD 0.40. Traders should protect their long positions with a stop loss below $ 0.27795.
EOS / USD
EOS broke below the 20-day EMA and has fallen to the nearest support at $ 3.2081. If the bulls fail to defend this level, the decline may extend to the 50-day SMA. Traders can keep their stops on the remaining long positions at $ 2.90.
A rebound from current levels will again attempt to push the EOS / USD pair above the overhead resistance at USD 3.8723. The 20-day EMA is flattening and the RSI is also down near the neutral zone. This shows a balance between supply and demand.
LTC / USD
Litecoin (LTC) was up above $ 47.2460 on March 2, but the bulls were unable to sustain the higher levels. The price has corrected itself again to the 20-day EMA and forms a head-and-shoulder pattern that is completed in the event of a breakdown and closes below the cutout.
The potential split has a model target of $ 32.00. However, $ 40.4240, the 50-day SMA and uptrend line can serve as important support.
The 20-day EMA is flattening and the RSI has also fallen to mid-point. This shows that the bulls are losing their lead in the short term. However, if the LTC / USD pair rebounds from either the 20-day EMA or the cutout, it will try again to scale above USD 50 and extend its recovery. Traders can hold a stop loss of $ 40 on the remaining long position.
BCH / USD
Bitcoin Cash (BCH) has failed to break out of the 20-day EMA for the past five days, resulting in sales. The price of the 50-day SMA has collapsed, which is a bearish sign. It can now drop to $ 116.79 and below $ 105. Long traders can keep their stop loss at $ 116.
The BCH / USD pair will prove us wrong if it reverses direction from current levels and breaks out of USD 140. Until then, any surge is likely to attract sales. The RSI is in the negative zone but the moving averages are still flat, indicating a likely consolidation.
BNB / USD
Binance Coin (BNB) closed above USD 12 on March 2nd, triggering our buy suggested in the previous analysis. However, the closing price above $ 12 attracted profit posting by the bulls, who have dragged the price back into the critical $ 10-12 support zone.
Both moving averages are falling and the RSI is in the positive zone, which shows that the trend has risen. Initial downside support is the 20-day EMA and below it is $ 9.2450296. If these support levels are not met, the slide can extend to the 50-day SMA.
Conversely, if the BNB / USD pair bounced off the 20-day EMA and breaks out of $ 12, it could soar to $ 15 and above to $ 18. Hence, traders who have been long positions can keep their stop loss at $ 9.
XLM / USD
Stellar (XLM) attempted to break out of overhead resistance at $ 0.09285498 on March 3 but failed. Currently the price has turned around and is below the moving averages. A break below $ 0.08184371 could re-test the yearly lows.
The 20-day EMA is flat and the 50-day SMA is falling. The RSI has also fallen below the 50s, showing that sellers have an advantage.
Our bearish view will be invalidated if the XLM / USD pair turns away from current levels and breaks out of $ 0.10. The pair were a huge underperformer as they did not participate in the recent pullback. This shows a lack of interest on the part of market participants in owning this coin. We will wait for a trend reversal before recommending trading it.
TRX / USD
Tron (TRX) has broken down the support at $ 0.02306493 and is close to the next support at $ 0.02113440. When this level breaks the next support to look down is $ 0.01830000. The moving averages have completed a bearish transition, which is a negative sign.
If the TRX / USD pair holds above $ 0.01830 it will likely extend its stint in this area and potentially offer us a cheap trade. However, if the bulls fail to defend the $ 0.01830 support, a deeper decline towards the yearly lows is likely.
Our bearish view will be invalidated if price turns away from current levels and rises above the two moving averages and above $ 0.02815521.
BSV / USD
Bitcoin SV (BSV) failed to hold the moving averages. It now threatens to break below the support at $ 65.031. This shows a lack of buying interest at higher levels.
The immediate support zone on the downside is between $ 58 and $ 60. If the BSV / USD pair breaks below this zone, it is likely to fall to the lifetime low of $ 38.528. When both the moving averages are falling and the RSI is in negative territory, the path of least resistance is down.
Conversely, if the cryptocurrency is above the supports, it will try again to rise above USD 77.035. If this is successful, it can go up to $ 102,580 and above it up to $ 123,980. Hence, we could suggest long positions if the price is above $ 78. Until then, we can’t find any reliable purchase setups.
The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.