Bitcoin, Ethereum, Stellar: Price Analysis, March 14

14/03/2019 - huy
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Barclays internet analyst Ross Sandler believes that a cryptocurrency by Facebook could add $19 billion to its revenue by 2021. If that happens, it will help expand the reach of cryptocurrencies and will be a major sentiment booster for the whole sector.

 

Overstock.com’s blockchain subsidiary, Medici Ventures has purchased a 5.1 percent stake in the blockchain banking platform Bankorus. The firm has purchased significant stakes in various blockchain companies.

 

It is not only in the West that crypto is generating significant interest. Chinese cryptocurrency mining manufacturer Canaan Creative is rumored to have secured hundreds of millions of dollars of financing from unnamed parties.  

 

We find numerous companies that have been moving ahead with blockchain- and crypto-related projects. This shows that the sector is generating huge interest from traditional players. It is only a matter of time before the price of cryptocurrencies starts to react to all these positive fundamental developments.

 

However, analysts at Bloomberg expect Bitcoin to head southward. They have observed that the price action is similar to November of last year, which had led to a sharp fall. But what do our charts forecast? Let’s find out.

 

BTC/USD

 

The bulls are providing support to Bitcoin (BTC) at the 20-day EMA. Both the moving averages are gradually moving up and the RSI is in the positive zone. This shows that bulls have a slight advantage. However, in order to solidify their position, they should quickly carry the digital currency above $4,000.

 

We expect a new uptrend on a breakout and close above $4,255, as it will complete a double bottom pattern that has a target objective of $5,273.91. Traders can add to their long positions on a close (UTC time frame) above $4,255.

 

 
On the downside, the BTC/USD pair has support at the 20-day EMA. If this breaks, the next support is at the uptrend line and finally at the 50-day SMA. If the pair plummets below the 50-day SMA, it can drop to the final support zone of $3,355–$3,236.09. This is the last support, below which, the downtrend will resume. Therefore, traders can maintain their stops on the existing long positions below $3,236.09. We shall raise the stop loss before the end of this week.

 

ETH/USD

 

The bulls are struggling to keep Ethereum (ETH) above $134.50. Though they purchased the dip to the 50-day SMA on March 12, they have not been able to sustain above the 20-day EMA. Currently, both the moving averages are flattening out and the RSI is close to the midpoint. This suggests a consolidation in the near term.

 

 
A breakdown of the 50-day SMA can sink the ETH/USD pair to the next support at $116.30. This is a major support, as the uptrend line of the ascending channel also lies at this level. Hence, we anticipate buyers to step in and buy close to $116.30. But if the pair breaks down of this critical support, a drop to $102.49 is probable.

 

Conversely, if the bulls scale above $144.78, the up move can reach $167.32. The ascending triangle pattern will complete on a breakout and close above $167.32. This has a pattern target of $251.64. Traders can keep the stops on the remaining long positions at $125.

 

XLM/USD

 

Stellar (XLM) has been consolidating for the past two days. We like that it has not given up much ground. The 20-day EMA is sloping up and the RSI is close to the overbought levels. This suggests that the bulls are at an advantage. A breakout of $0.011245806 can propel the digital currency to $0.13427050.

 

 
Conversely, if the XLM/USD pair turns down from current levels, it can drop to the 20-day EMA, which is a critical support. If this support breaks, the pair can correct to the uptrend line. This line has provided support three times, hence, we expect the price to find buyers close to it. However, if the bears break down of the uptrend line, a retest of the yearly lows is possible. Therefore, traders can maintain the stops on the long positions at $0.08.
 
 
According to Cointelegraph
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