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The market data is provided by the HitBTC exchange.
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on the Bitcoin exchange-traded fund (ETF) proposal by VanEck Associates Corp. and SolidX Partners Inc. The agency is now expected to make a decision by September 30.
The delay shouldn’t bother the investors because the ETF proposal has not been rejected yet, it has just been postponed. However, the speculators and short-term momentum traders who had hoped for a green light, have dumped their positions. As a result, the total market capitalization of the cryptocurrencies is now at about $228 billion, 24 percent down from July 27 high of $300 billion.
Though Bitcoin’s price has fallen along with the altcoins, its dominance has inched higher, closer to the 49 percent mark. This shows that the leading virtual currency is still favored by investors, compared to the alternatives. When institutional money starts flowing in, we expect the largest digital currencies to be the major beneficiaries. Therefore, it is best to keep an eye on them.
Will the bear market reassert itself or is this a good buying opportunity? Let’s find out.
Bitcoin has broken down of the 50-day SMA and is on its way to the critical support level of $6,000. This support has held on three previous occasions. Therefore, we expect the bulls to try to defend this line once again.
As long as the BTC/USD pair stays above $6,000, it remains inside a large range. If the support breaks, the digital currency will weaken and can quickly fall to the next support at $5,450 and below that to $5,000.
The RSI is close to the oversold levels, which usually results in a pullback. Therefore, we anticipate a pullback from the zone of $5,910.65 — $6,075.04.
So, should the traders buy in anticipation of a pullback?
Not really. It is best to wait for the pullback to materialize before cherry picking at the lows.
Let’s watch for a couple of days and then make the call, depending on how the pair behaves around the $6,000 level.
We anticipated a breakdown and that is what has happened. Ethereum broke below $404.99 on August 7 and plunged close to the next support at $358.
If the bears force a break below the support zone of $350 — $358, the ETH/USD pair can decline to the next support at $280.
If the support holds, the bulls will face a stiff resistance at $404.99 and the 20-day EMA. We shall wait for a new buy setup to form before suggesting a trade on it.
The bears forced a breakdown of the $0.4242 level on August 6, which resulted in long liquidation, as a number of stops would have been hit. Ripple has gone below our first target of $0.37942 and is fast closing in on the next target of $0.32862.
Below $0.32, the next major support on the XRP/USD pair is way below at $0.24001, a level last seen on December 12, 2017. A fall to this level will complete a 100 percent retracement of the entire bull market that started in mid-December of 2017.
The previous support of $0.4242 will now act as a resistance on any pullback. We shall wait for the virtual currency to stop falling before attempting a buy on it.
After breaking below the $619.751 line, Bitcoin Cash is on target to test the next support at $537.8221. If this support also breaks down, the fall can extend to $400.
The RSI is close to the oversold levels, which is likely to result in a pullback. Therefore, we anticipate a strong support between $537.8221 and $619.7510.
The BCH/USD pair has a history of vertical rallies, therefore we might suggest a long position as soon as we find its trend changing from down to up.
EOS has broken down of the range and is now on its way to the lower target levels of $5.1 and…
See more at: https://cointelegraph.com/news/bitcoin-ethereum-ripple-bitcoin-cash-eos-litecoin-cardano-stellar-iota-tron-price-analysis-august-08