Bitcoin, Ethereum, Stellar: Price Analysis, March 7
07/03/2019 - huy
Crypto companies are attracting talent from traditional industries. This shows that firms in the crypto space are preparing for the long-term, undeterred by the current bear market. Similarly, traditional companies are attempting gain footing in the crypto space. Ernst & Young, one of the Big Four auditing firms, has come up with a tool for calculating taxes on crypto holdings. The software will cater to both institutional and retail clients.
Japan is among the leaders in adopting cryptocurrencies. Major Japanese banks are gearing up towards improving blockchain and cryptocurrency services to their clients. The government of Argentina has also taken the plunge as it plans to invest in crypto projects along with Binance labs and crypto exchange LatamEx.
Rumors are rife about Starbucks — which is one of the founding partners of Bakkt — allowing the use of crypto-based payments shortly after an equity deal. If this becomes a reality, it will increase the exposure of cryptocurrencies.
Every day the crypto markets are treated to improved fundamentals. It is only a matter of time before the price of cryptocurrencies responds positively. What do the charts forecast? Let’s find out.
Bitcoin (BTC) held on to the 50-day SMA support and climbed above the 20-day EMA on March 5. This shows buying at lower levels, which is a positive sign. If the bulls continue the buying pressure and breakout of $3,900, a retest of $4,255 is probable.
Currently, both the moving averages are flat and the RSI is marginally positive. This points to a consolidation in the near term.
If the BTC/USD pair breaks out of $4,255, it will complete a double bottom pattern, that has a pattern target of $5,273.91. Though there is a stiff resistance at $4,914.11, we expect it to be crossed.
On the contrary, if the bears defend the overhead resistances and sink the digital currency below the 50-day SMA, a drop to $3,355.00 is probable. If this level breaks, the critical resistance is at the yearly low of $3,236.09. For now, traders can retain the stops on their long positions below $3,236.09. We shall soon recommend trailing the stop loss higher.
Ethereum (ETH) took support at the 50-day SMA and bounced off it. Currently, it is facing resistance at $144.78. Both the moving averages are flat and the RSI is just above the midpoint. This points to a consolidation in the near term.
The next up move will start on a break out above $145. The target of this move is $167.32. If this level is scaled, the ETH/USD pair will pick up momentum. Hence, traders can continue to hold the remaining long positions with a stop loss of $125.
If the price reverses direction from the current level and breaks down of the 50-day SMA, it can plummet to $116.30, which is a major support. Below this level, the trend will turn in favor of the bears.
Stellar (XLM) has been consolidating in a tight range of $0.08184371 to $0.09285498 for the past ten days. The 20-day EMA is flat while the 50-day SMA is flattening out. This shows a balance between the buyers and the sellers.
A breakout of $0.10 will tilt the balance in favor of the bulls, while a breakdown of $0.08184371 will indicate weakness.
Above $0.10, we anticipate a move to the next overhead resistance of $0.13427050. Hence, traders can buy above $0.10 and keep a stop loss of $0.08.
Conversely, below $0.08184371, a retest of the lows is probable. The XLM/USD pair will resume its downtrend if it slides to a new yearly low.
According to Cointelegraph
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