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The market information is offered by the HitBTC change.
Whereas 2017 was a raging bull market in cryptocurrencies, 2018 turned out to be a large bear market that worn out greater than $720 billion in whole crypto market capitalization. We consider that 2019 will deliver again the focus on the basics and the true potential of digital currencies.
With the arrival of conventional traders, digital currencies will at instances behave just like the standard markets. The Wall Road Journal just lately identified that the correlation between Bitcoin buying and selling and gold reached as excessive as 0.84 over a brief time period. Equally, it has traded at a 0.77 correlation to the Chicago Board of Choices Trade’s Volatility Index (VIX).
Because the market matures, it’s going to carve out a distinct segment for itself. We consider that cryptocurrencies are at the moment in a bottoming course of and may sign a backside throughout the subsequent few weeks.
After surrendering its place as the highest altcoin to Ripple (XRP) a number of weeks in the past, Ethereum (ETH) is trying a comeback. It has made large strides final week and has emerged as the highest performer among the many main cryptocurrencies.
BitMEX CEO Arthur Hayes believes that the lifeless ICO market will spring again into motion subsequent yr and can show to be constructive for Ethereum. He expects the cryptocurrency to rise to $200. Some are hoping that the community will get a lift from the upcoming Constantinople improve. Nonetheless, it’s at all times tough to foretell the market’s response to such a significant occasion.
The long-term development in Ethereum is down. It has misplaced some huge cash for its traders this yr. Nonetheless, after the autumn, can the ETH/USD pair begin a brand new uptrend in 2019?
After each rise and after each fall, the digital foreign money tends to consolidate in a spread. We’ve highlighted these durations with ellipses on our chart. In 2018, all of the ranges have resolved to the draw back.
Presently, the bulls are trying a pullback after hitting a low of $83. The help line of the previous vary will now act as a stiff resistance. Due to that, we anticipate promoting near $167.32. If the bears achieve defending this stage, a spread sure buying and selling motion may ensue.
Then again, if the bulls climb above $167.32, a rally to $249.93 is possible. The merchants can watch for an in depth above $167.32 to ascertain lengthy positions with an in depth cease loss.
Our neutral-to-bullish view will probably be invalidated if the worth turns down and sinks beneath $83. We will affirm the beginning of a long-term uptrend if the pair types a big basing sample after which breaks out of it. Till then, the merchants ought to goal for small targets and e-book earnings periodically.
Ethereum Basic (ETC) turned out to be the second-best performer among the many high cryptocurrencies. The market members are bullish on the upcoming cohort slated for Jan. 14. 11 startups have been chosen to get entry to the shared workplace house, developer help and funding. Can the bull run proceed? Let’s discover out.
The long-term development within the ETC/USD pair is down. Presently, the bulls are trying to interrupt out of the downtrend line that has capped all restoration makes an attempt since Could of this yr.
A escape of the downtrend line would be the first indication that the momentum on the draw back is waning. It can lead to a rally to the following overhead resistance of $9.5. We anticipate a powerful protection of this stage by the bears.
If, nevertheless, the bulls fail to interrupt out, the cryptocurrency can once more slide again to the current low of $3.3. Any break of this help can resume the downtrend.
After the lengthy downtrend, we anticipate the digital foreign money to enter a consolidation interval earlier than breaking out to a brand new uptrend. Subsequently, long-term traders can watch for a reversal setup to type earlier than constructing positions. Nonetheless, short-term merchants can keep on the lengthy aspect after the worth breaks out and closes above the downtrend line.
Featured cryptocurrency* — STRAT/USD
Stratis is at the moment on the 40th place when it comes to market capitalization. Not too long ago, it launched the primary Turing-complete good contracts to execute .NET code on-chain and its first sidechain, Cirrus, to the Stratis mainchain. These will present the companies and the blockchain builders the proper platform to create bespoke blockchains tailor-made to particular functions.
The previous few months have seen a slew of bulletins by the Stratis group. It partnered with MediConnect, the corporate that focuses on blockchain options for the pharmaceutical trade.
It additionally turned a certified Microsoft Impartial Software program Vendor (ISV) a few months again, which was a significant step forward. With a constructive basic information movement, is it a superb time to purchase the cryptocurrency? Let’s see.
The STRAT/USD pair was severely hit by the continued bear market. Its costs plunged from a excessive of $24.39960825 in early January of this yr to a low of $0.53353976 in mid-December, a lack of 97.81 %.
Nonetheless, the constructive factor is that it has participated within the current pullback.
From its low of $0.53353976 on Dec. 14, it recovered to a excessive of $1.84123616 on Dec. 24, a rally of 245 % in 10 days. Presently, the bulls are trying to stall the pullback on the 20-day EMA.
If profitable, the cryptocurrency will once more try to maneuver towards the overhead resistance of $1.91493444. If this stage is crossed, the restoration can lengthen to $2.14656768. We anticipate a brand new uptrend to begin if the bulls maintain the worth above this stage.
Merchants can watch for the worth to rebound from the 20-day EMA and rise above $1.46 to ascertain lengthy positions with the cease loss positioned just under $1.15. Partial earnings will be booked near $1.84 and the stops on the remainder will be trailed greater.
Nonetheless, if the bears sink Stratis beneath the shifting averages, it’s going to lose its momentum and might appropriate to $0.81338679, beneath which a retest of the low is possible.
NEO has introduced their second version of DevCon on Feb. 19. The founding father of NEO, Da Hongfei, is undeterred by the present bear market. He believes that the worth of the cryptocurrency solely tells part of the story, as it’s primarily pushed by sentiment. Hongfei continues to give attention to the challenge and the ecosystem and has referred to as the present part as, “ContiNEO – We carry on going,” Forbes reported.
The NEO/USD pair is in a powerful downtrend. From a excessive of $200.59839784 reached in mid-January of this yr, it dropped to a low of $5.4808 in mid-December. Presently, the bulls are trying to drag again from the oversold situations.
Any restoration will face a stiff resistance at $13.60337627. Beforehand, this stage had acted as a powerful help for about three months, so it’s going to act as a powerful resistance now.
If the bulls fail to scale the overhead resistance, we anticipate a consolidation interval of some days. The downtrend will resume if the bears plunge the cryptocurrency beneath $5.4808 as soon as once more. The merchants ought to watch for a development reversal earlier than initiating contemporary lengthy positions in it.
IOTA has been trying to climb again into the highest 10 cryptocurrencies by market capitalization however has not been profitable. Final week, it was the fourth greatest performer. How does its chart look now?
The IOTA/USD pair is trying to type a basing sample. It’s at the moment dealing with promoting on the earlier support-turned-resistance of $0.4037. If the bears proceed to defend this stage, we anticipate a consolidation between $0.2051 and $0.4037 for a number of weeks.
Opposite to our expectation, if the bulls escape of $0.4037, it’s going to point out that the markets have rejected the decrease ranges. In such a case, a transfer to $0.8152 is possible.
Aggressive merchants can look to enter lengthy positions on an in depth above $0.4037, whereas the long-term traders can watch for a brand new uptrend to begin earlier than shopping for it.
In a letter titled “2018 Binance Yr-Finish Assessment,” Binance CEO Changpeng Zhao has painted a constructive image of the crypto trade. He has additionally outlined the assorted plans for the Binance change and its personal cryptocurrency. What does the chart challenge? Let’s discover out.
The BNB/USD pair has been a relative outperformer. It efficiently held the help at $4.5200621 for 4 weeks, after which the bulls began a pullback try.
For the previous two weeks, the bulls have stored the worth above $5.4666, which is a constructive signal. This exhibits that the markets have rejected the decrease ranges. The digital foreign money is more likely to rise to the resistance line of the descending channel, nearer to $8.25. The short-term merchants can try to journey this transfer greater.
Nonetheless, the long-term traders ought to watch for the worth to interrupt out of the channel earlier than trying a commerce in it. Our bullish view will probably be invalidated if the bears plunge the digital foreign money beneath $4.1723848.
*Disclaimer: Stratis is a featured cryptocurrency from one in all Cointelegraph’s sponsors, and its inclusion didn’t have an effect on this worth evaluation.