Although Bitcoin (BTC) has been trading in a small range, the sentiment remains bearish. The price continues to trade below both moving averages, and the RSI has been in the negative territory since Jan. 10. The failure of the bulls to scale above the 20-day EMA shows weakness.
The bears will now try to resume the downtrend by breaking down of the yearly low at $3,236.09. Repeated failure of the BTC/USD pair to stage a decent recovery deters the traders who are waiting to buy upon the confirmation of a bottom. The critical levels to watch on the downside are $3,000, which is more of psychological support, and below it $2,600.
Conversely, if the cryptocurrency rebounds sharply from the current levels, or from $3,236.09, it can move up to the moving averages and above them to the downtrend line. We shall wait for a trend reversal before recommending a trade.
Ethereum (ETH) has dropped to the bottom of the range. The downsloping 20-day EMA and the RSI in the negative zone show that the sellers have the upper hand. A break below $103.2 will invite further selling that can drag the digital currency to $83.
Our bearish assumption will prove to be wrong if the ETH/USD pair bounces sharply from the current levels and rises above $116.3. We believe that such a move would signal a probable change in trend. Therefore, we propose a long position on a close (UTC time frame) above $116.3. The targets to watch on the upside are $134.5 and above it $167.32.
Bitcoin Cash (BCH) has been trading inside a tight range of $105–$121.3 since Jan. 28. The 20-day EMA is gradually sloping down, and the RSI is in the negative zone, which shows that the supply is exceeding the demand.
A breakdown of $105 will be a bearish indication that can result in a drop to $73.5. There might be a minor attempt to defend the psychological level at $100, but we don’t expect it to hold.
Conversely, if the BCH/USD pair breaks out of the consolidation, it can move up to $141, where it will be likely to face stiff resistance. Upon crossing the 50-day SMA, we expect the pair to show strength. Until then, we suggest traders remain on the sidelines.
After sustaining above $33 for the past four days, Litecoin (LTC) has again turned down. It is currently at the moving averages, which are likely to offer strong support.
However, if the LTC/USD pair breaks down of the moving averages and the small uptrend line, it can slide to $29.349, and below it to $27.701. Below that level, a retest of $23.090 is likely. The traders can keep the stop loss at $27.5.
On the upside, $36.428 is the critical level to watch out for. A failure to break out of this level shows a lack of demand at higher levels. Both of the moving averages are flat, and the RSI is at 50 levels, which indicates the possibility of a consolidation in the near term.