fastairdrop (OP)
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Activity: 57
Merit: 0
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March 31, 2018, 12:48:45 PM |
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Bitcoin has broken below our stop loss of $7,600, and our position initiated at $8,800 has been closed. We had suggested long positions because we anticipated a pullback once the digital currency broke out of the descending channel, but we were wrong. The bears strongly defended the 20-day EMA and pushed prices back into the descending channel once again. There is a minor support at $7,000 below which the BTC/USD pair will retest the February 06 lows of $6,075.04. However, traders should keep an eye on the relative strength index (RSI), which is entering the oversold territory. Previous declines to the oversold zone have turned out to be a good buying opportunity. Over the next couple of days, if we get a panic dip towards $6,000 or below that to $5,450.86, it might turn out to be a good place to buy for the long-term. Investors should watch for prices to stabilize for about four hours and then purchase about 25 percent of the desired allocation. Panic dips, after a prolonged downtrend, should be used to invest. We expect the $5,000 to $6,000 zone to offer a strong support.
Ethereum continues to be under pressure. The bulls have failed to even pull back to the 20-day EMA since March 05, which shows complete dominance by the bears. This has resulted in the RSI plunging deep into the oversold territory.The ETH/USD pair is currently at the strong support zone of $355 to $385. If this support breaks, the next support zone is between $275 and $300. As the RSI is oversold, we expect a relief rally that can reach the downtrend line. Once above this, a move to the 20-day EMA is possible. We should watch for a couple of days before suggesting any long-term positions.
xrp The next major support level on the XRP/USD pair is way lower at $0.22. The lower target levels will be invalidated if the bulls quickly push prices above $0.57 levels. Until then, all pullbacks will be sold into. If this support breaks, the XLM/USD pair can slide to $0.16 and below that to $0.11 levels. Here, the RSI is showing a positive divergence, but we need to wait for the price to turn up before putting any long position on it. If that level also breaks, the LTC/USD pair can slide to $84.708. The RSI is in the oversold zone. We can expect a relief rally soon, but we don’t find any buy setup now, hence, we do not recommend any trading position.
We expect the ADA/BTC pair to remain within the range of 0.00001690 and 0.00002460 for the next few days.
We suggest a buy position once prices close above 0.00002460 levels. If the support holds, there can be a possibility of a double bottom formation. Our bearish view on the NEO/USD pair will be invalidated if the prices sustain above $65 levels. EOS continues to exhibit strength. Prices are trading close to the 20-day EMA. If the sentiment improves across the sector, we expect the virtual currency to break out of the resistance line of the descending channel. On the downside, $5.1801 is a strong support, below which a retest of the $4 levels might take place. We retain the buy recommendation on the EOS/USD pair at $7.5, for a target objective of $11. The initial stop loss can be placed at $5.
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