Bitwise Asset Management has given a presentation to the United States Securities and Exchange Commission (SEC) allaying its concerns regarding the proposed Bitcoin exchange-traded fund. While Bitwise is confident that it has addressed all the issues raised by the SEC, we have to wait until next month for the SEC’s decision.
Though Bitcoin’s (BTC) price action has largely been lackluster in the past few days, it could change with the launch of Bakkt. Fundstrat Global Advisors co-founder Tom Lee is positive on “Bakkt and its ability to improve trust with institutions to crypto.” The crypto markets have been waiting for institutional interest to fuel the next leg of the up-move and Bakkt is an important step in that direction.
To maintain its advantage, the Chicago Mercantile Exchange (CME) Group plans to introduce options on Bitcoin futures in the first quarter of 2020, if it gets the necessary regulatory approvals. Tim McCourt – CME Group Global Head of Equity Index and Alternative Investment Products – said that the group plans to add new products to meet the increasing client demand as the feature will provide them “additional flexibility to trade and hedge their bitcoin price risk.”
The developments are all positive for Bitcoin. However, let’s see what the charts project and the important levels to keep in mind.
Bitcoin plunged on Sept. 19, but strong buying close to the trendline of the symmetrical triangle helped it recover all the losses by the end of the day. On a close(UTC time), the price has been clinging to the 20-day EMA since Sept. 6. This shows that bulls are defending the supports and bears are defending the overhead resistances. The flat moving averages and the RSI just below 50 points to a consolidation for the next few days.
However, a breakout of the downtrend line of the symmetrical triangle will indicate that bulls have overpowered the bears and a new trending move will begin. We expect the momentum to carry the price to the yearly high of $13,973. While the rally might face resistance at $12,304.37 and $13,156.96, we expect these levels to be crossed. Therefore, we retain the buy recommendation given in the previous analysis.
Contrary to our assumption, if the bears sink the price below the triangle and $9,080, a drop to $7,451.63 is probable. Such a move will be a huge negative and will delay the next leg of the up-move.
Ether (ETH) dipped on Sept. 19 and triggered our buy recommendation given in the previous analysis. The bullish crossover of the moving averages and the RSI in overbought territory shows that the trend has turned in favor of the bulls.
Though the downtrend is over, it is not necessary that an uptrend will start immediately. If the bulls fail to propel the ETH/USD pair above $235.70, it might remain range-bound for a few days. We expect the next leg of the up-move to start after the price breaks out and closes (UTC time) above $235.70. Above this level, a rally to $320.84 is likely.
Our bullish view will be invalidated if the index turns down from current levels and slips below both moving averages. The downtrend will resume below $163.755. Therefore, we suggest traders retain the stop loss on the long positions at $160.
The sharp rally in XRP stalled just below $0.34229 on Sept. 18. The subsequent pullback is finding support close to $0.27795, which is a positive sign. If the price again rises from this support, it might act as a floor. Therefore, traders can buy closer to $0.27795 and keep a stop loss of $0.240.
The first target on the upside is $0.34229 and above it $0.37835. Contrary to our assumption, if the XRP/USD pair slips below the moving averages, it can retest the critical support at $0.24508. A break below this level will be a huge negative and can start a new downtrend.
The failure of the bulls to push Bitcoin Cash (BCH) to $360 is a negative sign. It shows a lack of demand at higher levels. We now expect the bears to sink the price back to the neckline of the head-and-shoulders pattern. A breakdown of the neckline will complete the bearish setup, which will be a huge negative.
Nonetheless, if the bulls defend the neckline, the BCH/USD pair might remain range-bound for a few days. It will turn positive on a breakout and close (UTC time) above the overhead resistance of $360. We will wait for the trend to turn up before suggesting a trade in it.
Litecoin (LTC) broke out and closed (UTC time) above the overhead resistance of $76.7143 on Sept. 18, which triggered our buy recommendation given in the previous analysis. However, the cryptocurrency did not pick up momentum as we had anticipated. It dipped back below $76.7143 on the next day.
The LTC/USD pair took support at the 20-day EMA on Sept. 19, which is a positive sign. If bulls can push the price back above $81, the pair is likely to pick up momentum. The first target is $106 and above it the rally can extend to $125. However, if bears sink the price below $67.4314, it will be a negative development. Currently, the traders can keep the stop loss at $62, which can be trailed higher later.
EOS is struggling to hold above the 20-day EMA, which is a bearish sign. It shows a lack of buyers at higher levels. If the price slips below the moving averages and $3.6232, it can drop to the critical support of $3.1534. A breakdown of this level will be a huge negative.
Conversely, if the EOS/USD pair bounces off the 20-day EMA, it can rise to the overhead resistance at $4.8719. A breakout of this level will increase the possibility of a new uptrend. Hence, traders can hold long positions with stops at $3. However, on a sustained weakness below the moving averages, we might recommend closing positions early without waiting for the stops to be hit.
Binance Coin (BNB) is struggling to sustain above the 20-day EMA, which shows selling at higher levels. If bears sink the price below $19.65, the decline can extend to the critical support of $18.30. If this support breaks down, the next stop is $16.2501.
However, the RSI has formed a positive divergence, which is a bullish sign. If bulls can push the price above the 50-day SMA, it will indicate an end of the downtrend. Above the 50-day SMA, the rally can extend to $32.50. Hence, we retain the buy recommendation given in the previous analysis.
Bitcoin SV (BSV) has been trading close to the 20-day EMA for the past three days. If bulls can push the price above the moving averages, it can move up to $150, which is likely to act as a stiff resistance.
On the other hand, if the BSV/USD pair fails to scale above the moving averages, the bears will attempt to sink it below $107. If successful, the pair can drop to $92.933 and below that to $48.64. We do not find any reliable buy setups at the current levels, hence, we are not suggesting a trade in it.
After the surge on Sept. 18, Stellar (XLM) has entered a pullback, which can find support at $0.072545. A bounce off this level will be a positive sign and will indicate a new uptrend. The first target is $0.10 and above it $0.13. Therefore, traders can watch the price action close to $0.73 and buy if the level holds for more than four hours. The stop loss can be kept at $0.057.
The moving averages are on the verge of a bullish crossover, which suggests that the trend is changing. However, our view will be invalidated if the bulls fail to arrest the pullback at $0.069732. If the price slips below the moving averages, it can dip to the yearly lows once again.
Cardano (ADA) is facing profit-booking near the overhead resistance of $0.0560221. The pullback on Sept. 19 dipped below $0.05, which triggered our buy recommendation given in the previous analysis. While the bulls bought the dips, failure to scale above $0.0560221 will again attract profit booking.
The bears will again try to sink the ADA/USD pair below the moving averages. If successful, a drop to $0.0433229 is possible. A breakdown of this level can drag the price to $0.0357780. Hence, the traders can keep the stop loss on the long positions at $0.043. We will trail the stops higher at the first available opportunity.
If the pair can bounce off the moving averages and scale above $0.0560221, a rally to $0.065229 is likely. A breakout of this resistance will be a huge positive.