The downtrend continued this week with the market cap going below $300 Billion for the first time in the last two months. The general market has been weak and the last week’s total trade volume was the lowest in 2018. Though the prices have been going down, not everyone is keen on dumping cryptocurrencies at these prices. It is reasonable to assume the market evolves and matures every time hasty traders dump cryptocurrencies at every crash.
Bitcoin failed to hold up to a major support at $7,800 last month, going to a two month low of $6,600 today. There’s a strong support at around $6,500, but there are no clear indications of a rebound yet. The next major support is only at $5,500 and we expect a major rebound before that. Once the trend reversal occurs, the nearest resistance is only at $9,900 which opens up possibilities to good medium term trades.
For short term trades, set buy orders above $7,800 on confirmation of a trend reversal and close the order at $8,400. Buy back if the bull run continues with sell orders at $9,900. Bitcoin would require a lot of momentum to move back above $10,000 which is a major resistance now and we do not see that happening anytime soon.
Ethereum had a major fall last week to 0.071 BTC before rebounding. But Ethereum failed to cross resistance at 0.08 BTC and is currently trading at 0.078 BTC. Expect Ethereum to trade horizontally for a while before crossing this resistance. Set buy orders just above it and sell them at 0.085 BTC.
While the whole market was moving down, Ripple managed to move up against Bitcoin over the past couple of weeks. However, it failed to cross 89 Bits last week and is currently trading at 85 Bits. The closest support is at 76 Bits and it is not clear if Ripple would go up, or down from this point. Set buy orders at around 90 Bits and sell them at the next resistance at 94 Bits for short-term trades. It is safe to use leverage for this trade with stop-loss at 88 Bits.
Bitcoin Cash has been falling for the past few months, without clear signs of a trend reversal. It is currently trading at 0.138 BTC with support at 0.137 BTC. The next support is only at 0.122 BTC and short-term traders may buy now with stop-loss at 0.136 BTC and sell them at 0.153 BTC. Long-term traders should wait longer for solid confirmations of trend reversals.
However, the market has reacted positively to Bitcoin Cash’s marketing campaigns in previous instances. They’ve just launched a new initiative asking miners to remove minimum transfer values and validate some transactions for no fees. This may result in a trend reversal for the bitcoin fork in coming days.
Litecoin has been moving between 0.0164 BTC and 0.0155 BTC for the past couple of weeks now. Make use of this opportunity and open both long and short positions when the price hits support and resistance. If you’re using leverage, take only small positions because the price movement has been very slow.