As cryptos are currently rising from the bottom, the community has started hearing some bullish voices again.
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The market data is provided by the HitBTC exchange.
As the cryptocurrencies are rising from the bottom, we have started to hear some bullish voices again. Arthur Hayes, co-founder and CEO of BitMEX, expects the price of Bitcoin to reach $10,000 this year.
One of the events that can cause the price to move northward is the launch of Bakkt. The digital platform’s launch has reportedly been getting delayed due to compliance issues, as it planned to have custody of its customers’ Bitcoin. Nonetheless, the United States Commodity Futures Trading Commission (CFTC) has said that it is working on all the various crypto-related applications, including Bakkt. So, it could be only a matter of time before they get the green signal.
After the long bear phase, the current recovery is being led by various altcoins. Though the leader, Bitcoin, has only been crawling higher, the altcoins are seeing some sharp gains from the lows. The rise has reduced the dominance of Bitcoin in the past few weeks. In order to cover the altcoin rally better, we have chosen the top five performers among the coins that have a market capitalization of greater than $500 million.
ONT/USD
Ontology is the top gainer of the past week, as the markets cheered the various announcements made in the past few days. Ontology entered into a partnership with MovieBloc, a new participant-centric film distribution platform, that is backed by Korean video streaming platform
Pandora.tv. Li Jun, founder of Ontology, said that the project had completed a loyalty-based points solution for Fosun, a Chinese international conglomerate and investment company that has about 100 million users. Ontology is also working on chemical supply chain tracking for the Lanxess group. Will the rally continue or will the traders book profits? Let us find out.
The ONT/USD pair is in a smart pullback after hitting a low of $0.43598112 in December of last year. It is currently in the midst of forming a rounding bottom, which will complete on a breakout above $2.26296972. The minimum target objective of this reversal pattern is $4.08995832. The 20-week EMA has flattened out and the RSI is turning up. This shows that the bears are losing their grip.
We expect the bears to mount a strong defense at the current levels. But if the bulls scale and sustain above $1.22947704, the recovery can extend to $2.26296972. Short-term traders can buy on a weekly close (UTC time frame) above $1.22947704 and keep a stop of $0.78. This is a risky trade; hence, please keep the position size to only about 40 percent of normal.
ADA/USD
Cardano (ADA) completed a successful upgrade to version 1.5, which is the last major release of the Byron development phase. This update is an important step for moving to the Shelley development phase. After the rally, where does the price go from here? Let’s find out.
The ADA/USD pair has risen sharply in the past seven days: it has broken out of the range and has risen above the 20-week EMA, which is a positive sign. It should now rally to $0.082952 and if this level is crossed, the next target is $0.094256.
Both the moving averages have flattened out and the RSI has also risen to the midpoint. This shows that the trend is changing.
Traders can buy 50 percent of the desired allocation on a weekly close (UTC time frame) above $0.051468, and buy the rest on a minor dip to the breakout levels. We are recommending two different buy levels because strong breakouts do not retrace, so if the pair continues to move up, the traders will have some chips in the game. But on most occasions, breakouts pullback; if that happens, we want to buy at lower levels. The stops can be kept at $0.0350.
ETC/USD
The week saw the resignation of Anthony Lusardi from his post as the U.S. director of the Ethereum Classic Cooperative. However, he reiterated that he will continue to be involved with the ETC cooperative and will do some side/programming projects for Ethereum Classic (ETC) and Bitcoin. He said that the social media pressures had become difficult for him to handle, leading to his resignation. Nevertheless, the price of the cryptocurrency did not take a hit due to the departure.
The ETC/USD pair is attempting to form a base near the lows: it can move up to $5.889. The 20-week EMA is also located close to this level; therefore, we anticipate a strong resistance at $5.889.
If the bulls push the price above $5.889, it can rally to the next overhead resistance of $9.50. Therefore, traders can buy on a breakout and weekly close (UTC time frame) above $5.889 and keep a stop loss at $3.3.
If the digital currency turns down from $5.889, it might prolong its stay in the range for a few more weeks. It will weaken if it breaks below $3.3.
BCH/USD
Swiss-based cryptocurrency ATM operator Värdex Suisse has added support for Bitcoin Cash (BCH) on its devices. Swiss online retailer Digitec Galaxus will also now accept cryptocurrencies, and Bitcoin Cash is one of the many digital currencies on the list.
The bulls have carried the BCH/USD pair to the first overhead resistance of $163.89. Above this level, the digital currency can move to the next overhead resistance of $239. The 20-week EMA is located just below this level. Hence, we anticipate a stiff resistance close to $239. The digital currency has a history of vertical rallies, so if it breaks out of $239, the move can reach $400 and higher.
Conversely, if the bears defend $239, the pair might extend its stay inside the range for a few more weeks. We do not find any buy setups at the current levels.
IOTA/USD
The crypto payments startup Zeux will add IOTA as a mode of payment at various stores that accept Samsung Pay and Apple Pay. Zeux will launch in Europe in April of this year, and will hit the U.S. in 2020. How does the future look on the charts? Let’s see.
The OTA/USD pair is attempting a basing pattern near the lows. It is likely to rise to the 20-week EMA and above it to $0.4081. We expect the bulls to mount a stiff resistance at this level.
If the price turns down from here, it will remain range-bound for a few more weeks. The trend will turn down if the digital currency breaks down to new yearly lows.
On the other hand, if the price scales above $0.4081, it can move up to $0.560 and above it to $0.6499. After this level is crossed, the rally can reach the stiff overhead resistance of $0.8152. We shall wait for the price to sustain above $0.4081 before proposing any trade in it.
Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.
