Over the past few weeks, Bitcoin and Gold have gained a lot of attention from people all over the world. The reason behind this sudden incline towards these two is the trade war that is going on between the U.S. and China. Along with this, there are rumors of a global recession striking soon, which has left investors with no option but to invest in these to provide a safe haven for their earnings.
Traditional investors still prefer investing in gold as compared to other assets, but a recent scam regarding the making and presence of fake gold bars has surfaced, which created chaos in the market. In situations like these, cryptocurrencies are considered as the best way out to avoid any financial crisis.
There have been incidents when the government confiscated the gold holdings of people in the past, but decentralized digital currencies have no or little involvement of the government which offers a better platform in terms of protection of personal wealth.
Let’s take a look at what the charts have to say.
Whenever we see a trend of small range trading in the charts, what comes next is a range expansion which leads to a formation of a specific trend that lasts for a few days. But in the case of Bitcoin, it is becoming hard to predict this trend as the range is wider than expected.
From trading at $10,940 to coming all the way down to $9,450 within 2-3 days leaves us expecting a move in any direction within a few days. Participation of bulls is not enough to provide the much-needed push and Bitcoin is testing all the support levels that are coming in its the way.
Bitcoin is currently trading at $9,566.28, and if the price drops below the support level of $9,200, a downward correction towards $7500 is possible. Both the moving averages are going downwards, and the RSI is below 50, which indicates a strengthening in the short term.
Ethereum continued its torpid trading within the tight range that was witnessed by the market last week. The current trade is taking place below the 20-day EMA, but somehow the bulls have managed to keep it near the $191.11 resistance level.
If the bulls provide a push to the ETH/USD pair, the price will likely reach $238.93. We can see the formation of some minor resistance at the 50-day MA, but the bullish trend will be able to cross it with ease.
Currently, ETH is trading at $169.96, and if the bulls fail to move ahead of the resistance, we can expect a further decline beyond the critical support at $161.98 and this fall can extend to $150.
XRP has failed to rise above the 20-day EMA which attracted sales of the tokens. The decline is sharp, and it is likely to test the $0.2455 support level. If the bulls are not able to defend the price at this support level, then the price can go down to the yearly low of $0.225. Currently, it is trading at $0.2555.
Both the moving averages are moving downwards, and the RSI has entered the range below 50, which gives the bears an advantage. However, this can change if the bulls defend the price at $0.2455 and provide the push to take the price above the 20-day EMA. If the XRP/USD pair goes beyond $0.2742, it will tell us that the bearish pull was a trap.
Bitcoin Cash is trading just below the 20-day EMA, and it has started to flatten out with time. The bulls have failed to bounce it off the trend whereas the bears have been unable to pull it downwards.
In the coming days, the pair is expected to turn bearish and close below the climbing pattern. Such a condition will be a huge negative, and the pair price can fall to $165. Currently, BCH is trading at $280.08, and if a bullish trend is witnessed in the market, we can expect the price to rally above $360 level.
LTC has failed to break through the 20-day EMA and is likely to attract selling before it further goes down. The price has also declined, and LTC is on its way to test the critical support of $56.
Both the moving averages are sloping down, and the pair is likely to dip below the support level mentioned above. Further, the next critical support is available at $49, which forms the 78.6% Fibonacci retracement level of the entire chart. However, these predictions will be invalid if the pair rises from the current levels and towards the major resistance.
Binance Coin was able to hold the support levels of $24.17 on August 27th, but it failed to rebound off it. Instead, a further downward correction was faced by the coin as it went below the 20-day EMA. Currently, BNB is trading at $22.42, and the next support for it has formed at $17.50.
Both the moving averages are sloping down at a very fast rate, and this gives the advantage to the bears as the RSI is reaching in the negative territory. If the pair rises, we can expect it to rally towards $32.95.
EOS had the critical support at $3.30, and the slump in the market has led to a further downward correction in the price. Currently, EOS is trading at $3.2611, and immediate support is set at $3.03.
If it breaks below the support level, we can expect the price to further rally down to $2.75 level. In case the bulls can defend the $3.03 support, the EOS/USD pair can rebound and move up to $4.8924.
Stellar(XLM) has been trading in a tight range of $0.0725-$0.06250, which explains that both bulls and bears are not able to decide the next move for the trend. Hence they are not taking large bets on XLM.
Moving averages have been sloping down, and the RSI is in the negative zone suggesting that the bears have the upper hand in this situation. In case if the pair break below the $0.06250 level, the next critical support level will be at $0.05. An upward trend can push the price to $0.0977, providing a low-risk buying option to investors.
Monero(XMR) has been slowly moving towards the trendline, which shows the lack of interest by the bulls in buying. The moving averages are going downwards in the charts showing a downward correction in the prices of XMR.
Currently, XMR is trading at $68.122, and any further decline in the price will test the critical support levels of $60. If bears fail to break down the trend, bulls will try to provide the market a push to recover the price and gain some strength above both the moving averages.
Cardano(ADA) is under market pressure, and this has lead to a fall in its price. The downward correction can be seen through the charts as the altcoin trades below the moving averages.
ADA is currently trading at $0.045 with immediate support forming at $0.043. The critical support is available at $0.040, and if the bulls are not able to defend this support level, we can face a further decline beyond this support level.
However, our prediction can be proved wrong if the bulls can provide a push and take the price up to $0.065. If an upward trend is formed, then the upper resistance level can be seen near the $0.102 levels.