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In doing so, it has increased its dominance to 58.5 percent, a level last seen in May this year. This shows that money is pouring into Bitcoin, whereas altcoins are getting hammered.
At some point in the near future, once the leader tires out, other popular coins are likely to offer an excellent buying opportunity.
Is Bitcoin nearing a top? Are altcoins ready to follow the leader? Let’s find out.
Bitcoin is on fire. It has been consistently rising for the past two days. Can this rally continue? We don’t have any existing positions in Bitcoin, should we establish one at the current levels?
Bitcoin has reached a critical resistance level from the channel line. It has not been able to breakout of this channel since June of this year. A breakout of the ascending channel gives it a target of $8000, equal to the depth of the channel. However, this level is unlikely to be reached in the short-term. Therefore, we have to work with intermediate targets.
The breakout from the range of $5391.4 to $5875 gives the cryptocurrency a minimum target objective of $6359. If this level is crossed, then the next possible level is $6845.
Our higher targets will be invalidated if the virtual currency turns down from the current levels.
As the risk to reward ratio is not attractive, we don’t recommend any fresh trade. However, investors carrying positions from lower levels should keep a stop loss of $5600.
Once Bitcoin breaks out and sustains above the channel, the stops can be raised to about $5800 levels and then trailed higher.
On the downside, $5875, the earlier resistance, will act as a strong support.
We don’t recommend buying on the way down. We should wait for the next day or two to confirm that the support zone is holding, because a break of this support can sink Ethereum to $252 levels.
If, however, the support holds, the digital currency is likely to trade in a range for a few days, then attempt to start a new uptrend.
Presently, we don’t find any buy setup, therefore we don’t suggest any trade on Ethereum at the moment.
While Bitcoin is roaring ahead to new highs, Bitcoin Cash has not found any buying support from the bulls. However, selling has subsided, which has resulted in small range days.
Presently, the digital currency is attempting to hold the $282 to $300 support zone. If Bitcoin Cash breaks this level, it will sink towards lows of $190.
On the other hand, a breakout of $400 will signal a change in trend. Therefore, we recommend a long position only at $410, with a stop loss of $350. The target objective is $530.
We don’t hold any positions in Ripple. The digital currency is currently attempting to hold the $0.20 levels. However, buying interest has declined following the sharp reversal from $0.3 levels.
If Ripple breaks below $0.2, it’s likely to fall towards $0.15 levels, where we recommend to initiate long positions because it has not broken down of $0.145 on a closing basis since June this year. However, this trade should be taken on the way up, after Ripple confirms a bottom. Please don’t try to catch a falling knife and enter when the cryptocurrency is falling. The stop loss can be kept $0.126.
On the other hand, if the virtual currency holds the $0.2 levels, it will again attempt to rally towards $0.3. But, we don’t find a reliable set up to trade this. Hence we don’t recommend a long position until Ripple falls to $0.15 levels and holds it.
On Oct. 18, though Litecoin fell to $53 levels, it quickly climbed back higher and closed above $57.7. It has since then managed to stay above this support level. However, presently the cryptocurrency is threatening to fall into the range once again.
If Litecoin breaks below $57 and is unable to climb back quickly, it will invalidate the current bullish setup.
However, if the cryptocurrency finds support at the current levels and turns up, a long position can be initiated at $63. The stop loss for the trade can be kept at $55 and the profit objective is $71.
Published at Sat, 21 Oct 2017 16:31:09 +0000