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The market data is provided by the HitBTC exchange.
During a bear market, fear grips the investors, resulting in a long liquidation. While some believe that the bubble in Bitcoin has burst, others believe that the current fall is only a correction, which will lead to higher prices later in the year.
Founder and chairman of investment firm LDJ Capital, David Drake believes that Bitcoin will rally to $30,000 by the year-end. That is a whopping 262 percent return from the current levels.
Jack Dorsey, the CEO of Twitter and Square, believes that Bitcoin can replace the fiat currencies within a decade.
A few positive voices in a sea of gloom is a welcome change. Let’s see if the short-term picture is improving or not.
BTC/USD
Though Bitcoin broke out of the descending channel on March 20, it could not cross above the 20-day EMA. Currently, prices are again threatening to dip back into the channel, which is a bearish development. Our long positions initiated at $8,800 are trading under a loss. As the setup looks negative, we suggest booking a loss on 50 percent of the open positions and holding the rest with the stops at $7,600.
The next support on the downside is the March 18 lows of $7,715, below which, a retest of the February 06 lows of $6,075.04 is possible.
Our bearish view on the BTC/USD pair will be invalidated if prices breakout and sustain above the 50-day SMA.
ETH/USD
Ethereum is in a strong downtrend. It continues to trade inside the channel and below both the moving averages, which are falling sharply. The recovery attempt by the bulls failed at the $590 levels.
The final critical support on the downside is the March 18 lows of $452.32. Below this level, the ETH/USD pair can fall to $385.
The RSI is deeply oversold, which shows that the selling has been overdone. We anticipate another pullback attempt within the next few days. The first sign of strength will be when the bulls sustain above $600. Until then, the bears will continue to sell on rallies.
BCH/USD
Bitcoin Cash has broken below the $1,000 levels after holding it for three days. The next support on the downside is the March 18 lows $884.7951.
If the BCH/USD pair breaks below this, it will retest the February 06 lows of $778.2021. Bears have the upper hand as they have not allowed the price to climb above the 20-day EMA since February 21.
We should turn positive only after the cryptocurrency breaks out of the 50-day SMA.
XRP/USD
Our anticipation of a range bound trading action on Ripple is proving to be wrong. Prices are falling sharply towards the lower end of the range at $0.56270. Our suggested long position at $0.71, on March 19 is deeply in the red. Our stop loss is at $0.52, just below the March 18 lows.
If the XRP/USD pair breaks below $0.5375, a fall to $0.22 is possible, because there is no support in between.
The cryptocurrency will become positive only above $0.72.
XLM/USD
Stellar did not close above our buy trigger of $0.25, as recommended in the previous analysis. Therefore, we don’t have any position in it.
The XLM/USD pair is gradually falling towards the $0.2 levels, which is a critical support. If this support breaks, the cryptocurrency can slide to the support line of the descending channel at $0.1 levels.
We’d better wait for prices to turn up before suggesting any long positions in it.
LTC/USD
Our long position in Litecoin recommended at $165 is under loss. Traders who have initiated long positions should keep the stop loss at $142.
The LTC/USD pair has again fallen below the downtrend line, which is a bearish sign. A critical support is the March 18 lows of $144.544. If this level breaks, the support line of the symmetrical triangle can provide support at $127, below which a retest of the February 02 lows of $107.102 will be on the cards.
The virtual currency will turn bullish only after it breaks out of the $200 levels.
ADA/BTC
Though Cardano broke out of the downtrend line on March 21, it could not break out of the 20-day EMA and the horizontal resistance at 0.00002460. Our buy levels of 0.000025 have not triggered and stand canceled.
The ADA/BTC pair will spend a few days in the range of 0.00001690 and 0.00002460. A breakdown below the supports will prove to be bearish while a breakout will carry prices higher. Therefore, we need to wait for a breakout and close above the overhead resistance before initiating any trade.
NEO/USD
NEO has formed a bearish descending triangle pattern, which will complete on a breakdown and close below $65.
After the initial bounce from the lows of $49.04 on March 18, we had expected the bulls to strongly defend the $65 levels during the pullback. However, after failing to rise above $70 for the past three days, prices have now broken down of the support levels.
Next, if $49.04 level breaks, the NEO/USD pair can slide to $31.15 levels. Our bearish view will be invalidated if the bulls quickly reverse and sustain prices above $65.
EOS/USD
We wanted to buy EOS once it broke out of the descending channel but that did not happen. After staying above the 20-day EMA for the past five days, prices have slipped this week.
The EOS/USD pair has some support at the $5.84 mark. Below that, it can slide to $5 levels.
On the upside, even if the bulls manage to push prices above the 20-day EMA, they will again face a stiff resistance at the 50-day SMA.
The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.
Cointelegraph.com is author of this content, TheBitcoinNews.com is is not responsible for the content of external sites.
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