Bitcoin has been stuck in a tight range between $3,912.91 and $3,598.99 since Dec. 26. A breakout of this range will result in another attempt to break out of $4,255. If successful, it will complete an inverse head and shoulders pattern, that has a pattern target of $5,500. Above this level, it can move up to $5,900. Short-term traders can buy on a close (UTC time frame) above $4,255, with the stop loss at $3,550.
The down sloping 50-day SMA shows that the long-term trend is down. The 20-day EMA is flat and the RSI is close to 50, which suggests that the short-term trend is flat. The BTC/USD pair will weaken if it slides below $3,598.99 and the downtrend will resume below $3236.09.
Ethereum is trying to break out of $167.32. If successful, it can move up to $225. The moving averages have completed a bullish crossover and the RSI is in positive territory, which is a bullish sign.
If the bears defend $167.32, the ETH/USD pair can turn down to $136.12 and below this to the moving averages. We anticipate strong support in this zone.
However, if this zone breaks down, the virtual currency can drop to $100 and below that to the low at $83. Traders can wait for a dip to the support levels to buy.
Bitcoin Cash has reached close to the top of the descending channel. The 50-day SMA is located just above the channel. Hence, we anticipate a strong resistance at this level.
If the bulls break out of the overhead resistance, it will resume the recovery that can carry the BCH/USD pair to $307.01 and $355. Therefore, short-term traders can wait for a close (UTC time frame) above the 50-day SMA to buy.
Contrary to our assumption, if the digital currency reverses from 50-day SMA, it can fall to $100. If this level also breaks, it can slump to $73.50.
Litecoin has been trading above $29.349 for the past five days. The price is on the verge of breaking out of the 50-day SMA that can result in an attempt to break out of $36.428.
A breakout will complete a bullish inverse head and shoulders pattern that has a target of $49.756. Therefore, we recommend long positions on a breakout and close (UTC time frame) above $36.428.
On the other hand, if the bulls fail to break out of the neckline of the inverse head and shoulders pattern, the bears will attempt to plunge the LTC/USD pair below $28.067 that can result in a retest of the low.