Japanese consulting firm Nomura Research Institute, which is an affiliate of financial services giant Nomura Holdings, has launched a tradable cryptocurrency index in partnership with cryptocurrency investment solution provider Intelligence Unit. The index, which is meant for financial institutions, will track a basket of cryptocurrencies and can be traded in US dollars and yen.
Though several financial companies have launched services for institutional investors, the inflow of money into the crypto space has been slow. Bitcoin options trading on Intercontinental Exchange’s digital asset platform Bakkt has been lackluster with nil volume reported for the past few days.
Daily cryptocurrency market performance. Source: Coin360
German investment bank Deutsche Bank, in a series of reports on “The Future of Payments” has said that “a real digital payment revolution has been underway for the past ten years. Cash is losing ground as a payment method.” The report also said that “non-sovereign cryptocurrencies pose a threat to political and financial stability.” However, Deutsche Bank forecasts that cash is unlikely to vanish in the near future.
The crypto markets are gradually picking up steam, which is a positive sign. Can the rally forge ahead or will it succumb to profit-booking? Let’s study the charts.
Bitcoin (BTC) convincingly broke above the 200-day SMA at $8,893 on Jan. 28, which is a positive sign. The upsloping 20-day EMA and the RSI closing in on the overbought zone indicate that bulls are in command.
BTC USD daily chart. Source: Tradingview
However, the bulls might face minor resistance at $9,600 above which, the rally can extend to $10,360.89. Above this level, the next level to watch out for is the long-term downtrend line, which is close to $11,700.
Contrary to our assumption, if the bulls fail to sustain the price above the 200-day SMA, the BTC/USD pair might dip back to the 20-day EMA, which is likely to act as strong support. A break below $7,856.76 will be a huge negative. Therefore, stops on the long positions can be kept at $7,600.
The bulls are attempting to push Ether (ETH) above the $173.841 to $180 resistance zone. If successful, the next stop is likely to be $197.75. Therefore, traders can retain the stop loss on the long positions at $150.
ETH USD daily chart. Source: Tradingview
The price had previously reversed direction from $197.75 on two occasions (marked via ellipse on the chart). Hence, we anticipate this level to act as a stiff resistance once again. The traders can book partial profits at $195 and trail the stops on the remaining position to about $170.
Contrary to our assumption, if the bulls fail to scale and sustain the price above the overhead resistance zone, the ETH/USD pair might dip back into the $173.841 to $157.50 range.
XRP scaled above the overhead resistance at $0.2326 on Jan. 28. The price can now move up to the minor resistance at $0.25401. We anticipate the bears to defend the zone between $0.25401 and the 200-day SMA at $0.258
XRP USD daily chart. Source: Tradingview
If the price turns down from this zone, it might again dip to $0.2326. However, if the bulls push the price above the resistance zone, a rally to $0.34229 will be on the cards. The 20-day EMA has started to turn up once again and the RSI is in the positive zone, which suggests that the bulls have the upper hand.
The XRP/USD pair will turn negative on a break below $0.20041. Therefore, traders can protect their long positions with stops at $0.1995
Bitcoin Cash (BCH) is facing profit booking close to the overhead resistance at $403.88. This shows that bears are aggressively defending this level. If the price turns down from this level, it might trade in a large range of $306.78 to $403.88.
BCH USD daily chart. Source: Tradingview
However, with the 20-day EMA sloping up and the RSI close to the overbought zone, the advantage is clearly with the bulls. If the buyers can push the price above $403.88, the BCH/USD pair might move up to $480 where it is likely to hit a wall.
Our bullish view will be invalidated if the bears sink the pair below the recent low of $296.13. However, we give it a low probability of occurring.
Bitcoin SV (BSV) continues to trade inside the $337.8 to $236 range. However, the range has shrunk further and we spot a symmetrical triangle, which usually acts as a continuation pattern.
BSV USD daily chart. Source: Tradingview
It is not advisable to take a trade inside the triangle because it is difficult to predict which way the breakout will happen.
If the bulls can push the price above the triangle and the overhead resistance at $337.8, a rally to $458.74 is possible. On the other hand, if the bears sink the BSV/USD pair below the triangle and the support at $236, a drop to $158 is likely.
Litecoin (LTC) is again facing selling close to the 200-day EMA at $62. This shows that the bears are defending this level. If the price turns down from the current levels, it might dip to the 20-day EMA at $55, which is likely to act as a support.
LTC USD daily chart. Source: Tradingview
If the LTC/USD pair bounces off the 20-day EMA, we expect the bulls to make another attempt to clear the overhead resistance at the 200-day SMA and above it $66.1486. If successful, it will complete a cup and handle pattern, which has a target objective of $96.439.
On the other hand, if the bears sink the price below the 20-day EMA and the support at $50, the pair will turn negative.
The bulls are facing resistance at the overhead resistance at $4.24. However, the positive thing is that they have not given up much ground. If EOS consolidates near $4.24, it will increase the possibility of a breakout of this level.
EOS USD daily chart. Source: Tradingview
With the 20-day EMA sloping up and the RSI in the positive zone, the advantage is with the bulls. Above $4.24, a rally to $4.8719 is likely.
However, if the price turns down from the current levels and breaks below the 20-day EMA, a drop to $3.3555 is possible. A break below this support will turn the EOS/USD pair negative.
The bulls are struggling to push Binance Coin (BNB) above the overhead resistance at $18.50. However, with 20-day EMA sloping up and the RSI in the positive territory, the advantage is with the bulls.
BNB USD daily chart. Source: Tradingview
If the bulls do not give up much ground and the BNB/USD pair consolidates close to $18.50, the possibility of a breakout increase. Above $18.50, the next level to watch out for is the 200-day SMA at $19.89 and above it $21.80.
Contrary to our assumption, if the bears sink the price back towards $16.50, the pair will extend its stay inside the range. A break below $16.50 can turn the tables in favor of the bears. Therefore, traders can keep the stop loss on the long positions at $15.90.
Ethereum Classic (ETC) is in a strong uptrend. It has easily scaled above $12.04 from where it had reversed direction on Jan. 17. This shows that the bulls are firmly in the driver’s seat. The next level to watch out for is $14 and above it $16.60.
ETC USD daily chart. Source: Tradingview
However, after rallying sharply for the past four days, the ETC/USD pair might take a break and pullback towards the breakout level of $10. A successful retest of this level will give a low-risk buying opportunity
Our bullish view will be invalidated if the bears sink and sustain the price below the breakout level of $10. In such a case, a drop to the 20-day EMA is possible.
ADA USD daily chart. Source: Tradingview
With the sharp rally of the past three days, the ADA/USD pair has reached the overhead resistance at $0.0560221. If the bulls fail to push the price above the resistance, the traders can book partial profits and raise the stops on the remaining position to breakeven.
Conversely, if the bulls easily carry the price above $0.0560221, the next target is $0.0652290. Our bullish view will be invalidated if the pair turns down from the current levels and slips below $0.0461161.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.
Joseph Spezzano received a Masters Degree in computer science from The University of Massachusetts. Joseph has been working as a full-time blockchain programmer for the past 5 years. In his spare time, Joseph enjoys writing for CryptocurrencyInvestments.com and traveling.