The financial world seems not to have made up its mind yet about cryptocurrencies.
Paul Singer, founder of investment management firm Elliott Management called cryptos “one of the most brilliant scams in history” whereas Tim Draper, a prominent venture capital investor, has held on to his Bitcoin, and, when asked if he is going to sell them, said: “Why would I sell the future for the past”.
Meanwhile major exchanges Coinbase and Bitfinex are aiming to implement the Segregated Witness(SegWit) scalability upgrade into their systems, which will significantly cut fees and transaction time for the users.
Will this news turn out to be bullish for Bitcoin and the other top digital currencies? Let’s find out.
Yesterday, February 20, Bitcoin reached our second target objective when it met the resistance line of the descending channel. Traders following us should have sold out their positions around $12,000. What should they do now?
The BTC/USD pair has almost doubled from its recent lows, therefore some profit booking is to be expected at the current levels. However, it remains bullish as long as it trades inside the ascending channel.
If the bears break down below the support line of the ascending channel, a fall towards the 20-day EMA at $10,000 and below that to the horizontal support line at $9,500 is possible.
Our bearish view will be invalidated if the cryptocurrency breaks out of $12,200 and rallies towards $13,000.
The stop loss suggested by us in our previous analysis triggered yesterday, February 20. Ethereumhas now broken below the 20-day EMA, which is a bearish sign.
On the downside, we expect the ETH/USD pair to fall to between $780 and $772 levels, which is a strong support zone.
Our bearish view will be invalidated if the bulls push the digital currency back above the 20-day EMA, towards $1,000 levels. However, the probability of such a rally is low.
Our recommended stop loss of $1,400 triggered today, February 21. Bitcoin Cash has not performed according to expectations. It failed to gain momentum and move towards the 50-day SMA.
The bears have broken below the 20-day EMA, which is a bearish sign. There is one final support at $1,350. If this support breaks, the BCH/USD pair can correct towards $1,200 levels once again.
Our view will be negated if the bulls break out of the trendline and move up to $1,600.
After trading in a tight range from February 15 to 19, Ripple broke down of this range yesterday, February 20.. It has also fallen below the 20-day EMA; this indicates weakness. Our suggested stop loss of $0.95 has not yet been breached. But unless the bulls quickly climb above the 20-day EMA, a fall to $0.87 is likely.
The XRP/USD pair will gain strength only if it breaks out and sustains above $1.23. We expect the cryptocurrency to remain range bound between $0.87 and $1.2 over the next few days.
Stellar has turned down and has broken below the critical support of $0.41. Currently, it is taking support at the channel line; unless it breaks above $0.41 quickly, it might turn negative.
Our stop loss is way lower at $0.30. As most top coins are showing weakness, we should raise the stop loss on the XLM/USD pair to $0.35 on a daily closing basis (UTC).
If the cryptocurrency again enters the channel, it will mean bearish development, and this will raise the chances of a breakdown below $0.30 levels.
We had previously anticipated a rally to $270, but Litecoin could only touch the $256.818 levels yesterday, February 20. Higher levels attracted profit booking, resulting in a pullback.
The LTC/USD pair is stronger compared to the other top coins as it is trading above both the 20-day EMA and the 50-day EMA. The moving averages are also forming a bullish crossover, which is another positive sign.
The price might find support at the trendline, around the $214 mark. Nevertheless, if all the cryptocurrencies fall, Litecoin positions will not be damaged. Therefore, we recommend raising the stop loss on the remaining position to $210.
The digital currency will gain momentum if it reverses direction and sustains above $240.
Our bearish view on Cardano has played out according to our forecast. The cryptocurrency has been falling for almost 10 days. This has pushed the RSI into oversold territory and also increases the possibility of a pullback to the overhead resistance level of $0.00004070.
The falling 20-day EMA is also close to this level. We won’t be surprised to see the ADA/BTCattempting to rise in the next couple of days. However, the trend remains down and we expect the price to fall to the next support level of $0.0000246.
The bulls tried to break out of the descending triangle pattern on February 19 and 20, but were unsuccessful in settling at higher levels. NEO reversed direction yesterday, February 20 and reentered the descending triangle.
Today, the NEO/USD pair is trying to hold on to the critical support of the moving averages and $120.33. If this support zone breaks, a fall to $100 is likely.
We will turn bullish if the cryptocurrency breaks out and sustains above $140.
EOS did not reach our buy levels of $11. It turned down from the downtrend line and the 20-day EMA, which is a bearish sign.
The EOS/USD pair has support at $7.91. If this support breaks, the price might fall to $7. On the upside, a breakout above $10.50 will indicate a possible shift in trend.