January 8 Price Analysis: Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, NEM, Cardano
Jan 09, 2018 Posted / 3093 Views
Most of the conventional investors stayed away from Bitcoin citing last week stating its volatility. Nevertheless, the big question forefront is whether the US securities regulators will give the nod to the tax instruments. Any ETF acceptance is will give a gigantic boost to cryptocurrencies. With the market capitalization of the various cryptocurrencies inching towards the $1 trillion mark, let us evaluate what has happened and what can happen in future.
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The analysts suggest initiating long positions for Bitcoin at $15,500 in and the level reached on Jan. 7-8, triggered the long position. For a short period of time, the price broke out of the resistance at $16,500 and rallied to a high of $17,083.67, where it witnessed profit booking. Presently, the cryptocurrency is finding support at the $15,500 mark that had served as resistance earlier. The trend line support is also at the same level. If it returned back to the current levels it will break the neckline at $13,000- a bearish sign again. Analysts recommend keeping a stop loss of $15,000 in our positions. It’ll reduce your risk.
For the past few days, Ethereum has been witnessing profit booking at the resistance line of the ascending channel. It has not given up any ground, which shows buying strength at lower levels. The experts anticipate another attempt by the bulls to break out of the channel. If successful, the Ethereum value can climb from $1,200 levels to $1,500. In case the bulls fail to break out of the ascending channel, a fall to the lower end of the channel at $840 is likely. That’s why we believe partial profits should be taken between $1,200 and $1,310 levels. Rest of the positions can be held with a close stop loss depending on the strategy of the trader.
Though Bitcoin Cash broke below the trendline, it held on to the $2,480 levels that have provided support for two days. Since last week too, the cryptocurrency has been trading in a tight range of $2,991 - $2,553.18. If the bulls break out and sustain above $2,555, a move to $2,800 and thereafter to $2,900 is likely. But if the support breaks, the Bitcoin price falls short; it will find support at $2,072.6853. We don’t have a clear buy set up, so we are not recommending any trade.
Ripple is currently in a losing again after reaching a high of $3.84 on Jan. 04. However, the fall to $2.15 levels on Jan.5, was bought aggressively and now it is trading at $2.57. In the near term, this is a critical support point, below which the correction is likely to extend to $1.76 levels. Ripple has a history of sharp rallies, which are followed by a period of correction/consolidation.
The experts say that the time period of the up move and the quantum of the rally is almost similar in all the three instances. Both the previous corrections found support at about 61.8 percent Fibonacci retracement of the rally. If history repeats itself, we are likely to see a fall to $1.40 levels.
IOTA has been trading inside the $3.032 - $5.59 range since Dec. 06. Analysts had been advising to take long positions at $3.904. The experts now suggest that people, who missed buying at those levels, should buy at $4.121. If the bulls succeed in breaking out of the overhead resistance, a rally to $5.59 is likely. However, if the bears push the cryptocurrency below the 20-day EMA, it can fall to $3.03 levels.
The analysts expected NEM to face resistance at $2.13774 levels and it returned from $2.06278. The cryptocurrency corrected close to $1.42889, which is 50 percent Fibonacci retracement level of the recent rally from $0.795 to $2.06278. If the $1.4 level holds, the experts anticipate that the bulls will attempt to resume the uptrend once again. Therefore, aggressive traders can buy at $1.702 and keep a stop loss of $1.4. Risk-averse traders should wait for a set up with a better risk to reward ratio because if $1.4 level breaks, the XEM/USD pair is likely to fall to the trendline support.
The value of Cardano topped out on Jan. 4 at 0.00009180.The pullback is finding support at the 0.000053 levels, which is just above the 61.8 percent Fibonacci retracement of the rally from 0.00002539 to 0.00009180. If the levels hold, we may see an attempt by the bulls to resume the uptrend. However, the analysts expect to witness profit booking at higher levels. They are waiting for a range bound move for Cardano in the next few days.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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