Price Analysis Jan 03: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, XTZ, XLM
Bitcoin is en-route to flipping the $7.4K resistance to support and the sharp rebound from key support levels on most major cryptocurrencies is a positive sign.
Bitcoin started the new year on a weak note and looked to be losing ground. However, the news of the killing of Iran’s General Qasem Soleimani, in an airstrike ordered by the US President Donald Trump, caused a reversal in Bitcoin’s price. This shows that the market participants have again turned to cryptocurrencies in times of uncertainty and escalating geopolitical tensions.
In other news, Antoni Trenchev, the head of decentralized finance (DeFi) platform Nexo.io, said that Bitcoin is a unique asset which is uncorrelated to the overall market. Trenchev said it is entirely possible that Bitcoin price reaches $50,000 in 2020. Trenchev said that the only thing that had come close to Bitcoin’s performance was “the rise of the US dollar against the (German papiermark) in the 1920s.”
Daily cryptocurrency market performance. Source: Coin360
Major cryptocurrency exchange Binance has added support for euro trading against six cryptocurrencies from Jan. 3. Binance CEO Chanpeng Zhao said that the exchange aims to provide fiat-to-crypto trading for 180+ fiat currencies in 2020. This move will bring crypto to the masses across the globe.
While crypto prices are benefitting from the risk-off sentiment, can this relief rally sustain? What are the important levels that will signal a change in trend? Let’s analyze the charts to find out.
The bears attempted to sink Bitcoin (BTC) below the immediate support at $7,000 on Jan. 2 but the price quickly bounced back which is a positive sign. It shows accumulation by the bulls at lower levels.
BTC USD daily chart. Source: Tradingview
If the bulls can push the price above the 50-day SMA, a move to $7,856.76 is possible. The downtrend line is also close to this level, hence, we anticipate the bears to defend it aggressively.
However, if the bulls can scale the BTC/USD pair above it, we anticipate the buyers sitting on the sidelines to jump in. A close (UTC time) above $7,856.76 will also complete a double bottom pattern that has a minimum target objective of $9,278.52. Above this, a move to $10,360.89 and above it to $12,000 is possible. Therefore, we retain the buy suggested in our earlier analysis.
Contrary to our assumption, if the price turns down from the 50-day SMA and sustains below $7,000, a drop to $6,435 is possible. A breakdown of this support will resume the downtrend.
Ether (ETH) has bounced sharply from support line of the symmetrical triangle, which is a positive sign. It the bulls can push the price above the triangle, a move to $157.50 is possible. Therefore, we retain the buy recommendation given in the previous analysis.
ETH USD daily chart. Source: Tradingview
However, if the bulls fail to push the price above the triangle, it will indicate a lack of demand at higher levels.
The ETH/USD pair will turn negative if the price turns down from the current levels and plummets below the support line of the triangle. Such a move will resume the downtrend with a target objective of $98.
XRP has bounced off the support at $0.18339, which is a positive sign. This shows that bulls are accumulating on dips to the strong support levels. If the price can now rise above the overhead resistance at $0.20041, a relief rally to $0.23260 is possible. The aggressive traders can ride this move up as suggested by us in an earlier analysis.
XRP USD daily chart. Source: Tradingview
Contrary to our assumption, if the price fails to scale above $0.20041, the XRP/USD pair will remain range-bound for a few more days. The pair will turn negative on a break below the support at $0.18339 and the downtrend will resume below $0.17468.
The dip to the support at $192.52 was bought aggressively. This is a positive sign as it indicates strong demand on dips. Bitcoin Cash (BCH) has reached close to our first target objective of $227.01.
BCH USD daily chart. Source: Tradingview
If the bulls can push the price above $227.01, the next target is $241.85. As the BCH/USD pair is backed with momentum, we suggest traders trail the stops on their long position to $191. Let’s reduce the risk.
Contrary to our assumption, if the bears defend $227.01 aggressively, the traders can book partial profits and trail the stops on the remaining position.
The bears dragged Litecoin (LTC) to the support at $39.252, which held. This shows buying close to critical support level. If the bulls can now carry the price above the 50-day SMA, a move to $50 is possible.
LTC USD daily chart. Source: Tradingview
We anticipate a stiff resistance at $50. Hence, traders can watch the price action closely and book partial profits if the bulls fail to push the price above it. However, if the momentum carries the price above $50, the next level to watch out for is $60. The traders can retain the stops on their long position at $38.
Our view will be invalidated if the LTC/USD pair turns down from the current level and plunges below $39.252. A break below $35.8582 will resume the downtrend.
EOS again bounced off the support at $2.4001. If the bulls can sustain the price above the 50-day SMA, a move to $2.8695 is possible. If the momentum can carry the price above $2.8695, a rally to the downtrend line is possible. This is an important resistance to watch out for because the price has repeatedly turned down from the downtrend line.
EOS USD daily chart. Source: Tradingview
The traders can watch the price action at $2.8695 and book partial profits if the bulls struggle to propel the price above it. The remaining position can be held with a trailing stop loss. For now, the stops on the long positions can be maintained at $2.40.
Our bullish view will be negated if the EOS/USD pair turns down from the current level and breaks below $2.4001.
Binance Coin (BNB) slipped below the downtrend line on Jan 02. However, the bears could not capitalize on this breakdown and drag the price to $12.1111. This shows buying at lower levels.
BNB USD daily chart. Source: Tradingview
The price is currently close to the 20-day EMA. If the BNB/USD pair can rise above it, the bulls will again attempt to propel the price above $14.5201. If successful, a move to $16.50 is possible. Therefore, we retain the buy recommended in our earlier analysis.
Contrary to our assumption, if the bulls fail to break above the overhead resistance levels, the price might remain range-bound between $12.1111 and $14.5201 for a few more days. The pair will turn negative on a break below $12.1111.
The bulls again defended the support at $92.693 aggressively, which is a positive sign. If Bitcoin SV (BSV) can sustain above $101.66, a rally to $113.96 will be on the cards. The traders can book partial profits at this level if the bulls find it difficult to scale it.
BSV USD daily chart. Source: Tradingview
However, if the momentum can carry the price above $113.96, a move $140 and above it to $155.380 is possible. The traders can trail the stops on the long positions to $90.
Contrary to our assumption, if the BSV/USD pair turns down from the current level and breaks below $92.693, it can drop to $78.506.
The bulls have held the $1.20 support on Tezos (XTZ) for the past four days. This shows that buyers are accumulating close to this level. If the price rises above the moving averages, a move to $1.40 and above it to $1.60 is possible.
XTZ USD daily chart. Source: Tradingview
On the other hand, if the bulls fail to sustain the price above the moving averages, the XTZ/USD pair might remain range-bound for a few days. The pair will turn negative if the bears sink the price below $1.10. We do not find any reliable buy setups at the current levels, hence, we remain neutral on the altcoin.
Stellar Lumens (XLM) is consolidating between $0.042133 and $0.047799. The RSI has formed a bullish divergence, which is a positive sign. If the bulls can push the price above $0.047799, a move to $0.051014 is possible.
XLM USD daily chart. Source: Tradingview
We will turn positive if the bulls sustain the price above $0.047799. As the risk is low, we suggest traders buy 50% of the desired allocation on a close (UTC time) above $0.047799 and wait to buy the rest after the price sustains above $0.051014. The stops can initially be kept at $0.042.
If the XLM/USD pair turns down from the current levels and drops below $0.042133, the downtrend will resume.
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.