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Market data is provided by HitBTC exchange.
While many experts and investors view the current crypto bear market as a negative, George Mason University economist Tyler Cohen believes the crash is a positive thing as it helps cleanse the system. The dot-com bubble was painful, but it swept away bad companies and paved the way for today's leaders like Amazon and Google.
In the past, critics have pointed to the cryptocurrency's wild fluctuations as a hindrance to mass adoption. But since September, Bitcoin has traded in a tighter range than the Argentine peso, Turkish lira, Brazilian real, Mexican peso and South African rand. In fact, Bitcoin's fluctuation range has been only 2.7% greater than that of the safe-haven Swiss franc.
In both ups and downs, Bitcoin has led the way, with altcoins following its price movements. However, some analysts believe that this could change in the future, and the next bull market could be led by one of the top altcoins. Let's see what the chart predicts.
BTC/USD
Bitcoin failed to attract buyers at the higher highs. It dropped from $6,600 and briefly fell below both moving averages, which is a bearish sign. The next stops are on the decline to $6,250-$6,200.
A drop below $6,200 will threaten the critical support zone of $6,075.04-$5,900 which has not been breached in 2018. A breach of this support zone could lead to a rapid liquidation of long positions, sending the BTC/USD pair down to $5,450 and $5,000 in the short term. Therefore, traders can keep the stop loss at $5,900.
If the bulls can sustain the $6,200 levels, the leading digital currency could remain within the range for a few more days.
ETH/USD
The lack of follow-up buying has pushed Ethereum down to the 20-day EMA. If this support breaks, a drop to the lower support of $200 and $188.35 is possible. If the bears can sink the price below the Sept. 12 low of $167.32, the downtrend will resume.
If the bulls defend the 20-day EMA, the ETH/USD pair can again attempt to rise above $225.12. We will turn positive if the price breaks out and closes above $249.93. The flat moving averages and the RSI close to 50 suggest that the consolidation may continue for a few more days.
Price action within a range is usually volatile and can quickly hit stop-ups, hence, positional traders can wait for a breakout and close above $249.93 before initiating long positions. Meanwhile, aggressive traders can buy near the lower end of the range, around $188.35, after the digital currency shows signs of upside.
XRP/USD
Ripple has not been able to find support at higher levels. After breaking out of a tight range, it has corrected to the upward-sloping moving averages. We expect the bulls to provide strong support at the current levels.
If the XRP/USD pair bounces off the moving averages or bounces off the breakout levels of the narrow range, it will once again attempt a breakout of $0.565. If successful, the digital currency can reach $0.625 and $0.7644.
On the other hand, if the bears can sink the price below the moving averages and the narrow range, a drop to $0.37185 is likely. For now, traders can retain the stop loss at $0.425 but any breakdown below this level will frustrate the bullish assumption.
BCH/USD
Bitcoin Cash has turned down from the critical upward resistance of $660.0753, which we had anticipated and therefore recommended booking partial profits in our previous analysis.
The current pullback can extend to the moving averages which have completed a bullish crossover. Hence, strong support is expected at the 20-day EMA. The RSI has also corrected the overbought levels, so the BCH/USD pair might make another attempt to break out of $660.0753. If this attempt fails, traders can close their positions.
If the bears continue to batter the digital currency and sink it below the moving averages and $400, our bullish view will be invalidated.
EOS/USD
EOS has turned down from close to the top of a tight range. It is now back to the midpoint. If the bears can sink the price below the 20-day EMA, a drop to the lower end of the range is likely. Traders can keep the stops on their long positions at $4.90.
A break below $5 can send the EOS/USD pair down to $4.49 and below that to the critical support at $3.8723. However, we expect the bulls to provide a strong support at $5.
The cryptocurrency will show signs of strength if it breaks out of $6.00 and a reversal will be indicated if the bulls can sustain the price above $6.8299. After the breakout, the target levels to watch on the upside are $9.1668 and $11.4.
XLM/USD
Stellar continues to trade above the moving averages and the downtrend line of the descending triangle. As the cryptocurrency has broken out and stabilized above the downtrend line, we should retain the buy recommendation recommended in our previous analysis.
If the buy order gets filled, the target price will be $0.36 with a minor resistance at $0.304. This level is expected to be surpassed but in trading, one should be prepared for any eventuality. Therefore, if the bears defend $0.304, traders can close the position or raise the stop to breakeven. The initial stop loss can be kept at $0.2 but can be raised quickly after the position is filled.
Our bullish view will be invalidated if the XLM/USD pair falls below both the moving averages and re-enters the descending trend line of the triangle. A drop below $0.184 will resume the downtrend.
LTC/USD
Litecoin has turned down from the downtrend line. It has fallen below both the moving averages and can retest the $49.466 to $47.246 support zone. Traders with partial positions remaining can keep the stops at $50.
The LTC/USD pair will remain bearish as long as it is trading inside the descending triangle pattern. If the bears sink below $47.246, the downtrend will resume.
The pattern will be invalidated if the bulls break out of the descending trend line of the triangle. Such a move can push the price to the upper limit of the range at $69.279. A change in trend is expected if the cryptocurrency breaks and closes (UTC timeframe) above $69.279.
ADA/USD
Cardano has been trading mostly inside a tight range of $0.082207 to $0.068989 since Oct. 12. After finding support at $0.068989 on Oct. 31, the price rose to the upper end of the tight range at $0.082207 on Nov. 6.
However, both these levels held firm as the bulls defended the lower end of the range and the bears defended the upper end of the range.
With both the moving averages flattening and the RSI at the midpoint, the ADA/USD pair is not showing any clear indication of its next move. We expect a new uptrend to begin if the bulls can push the price above $0.094256. Until then, we suggest remaining on the sidelines in the trade. If the cryptocurrency sinks below $0.060105, it will resume the downtrend.
XMR/USD
Monero failed to break out of the $112.44 level for four days and then turned down, dropping below both the moving averages.
Unless the bulls can quickly scale above the moving averages, a drop to the bottom of the narrow range at $100.453 is likely.
A continuation of the range-bound movement is likely with the flat moving averages and the RSI close to 50. There is no reliable buy setup in the XMR/USD pair, therefore, no trade is recommended.
TRX/USD
TRON has been trading within a range of $0.02815521 to $0.0183 since August 8. Between August 8 and October 15, the price rose to the upper limit of the range three times and fell to the lower limit of the range twice.
However, since then, the TRX/USD pair has mostly remained near the midpoint of the range, with any deviations from the center being quickly pulled back.
Either a breakout or a breakdown from the range will form a new trend. A rise and close above $0.02815521 (UTC timeframe) can lead to a rally to $0.04158193. A drop below $0.0183 will resume the downtrend.
Market data is provided by HitBTC exchange. Charts for analysis are provided by TradingView.
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