Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, Monero, TRON: Price Analysis, October 19

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.

The market data is provided by the HitBTC exchange.

Retail investors tend to run for cover when the market falls, whereas the professionals get their buy list ready to take advantage of the bargain prices. Though the trading volumes have been falling in the past few months, the merger and acquisition (M&A) activity is on an upswing.

Recently, Goldman Sachs and Mike Novogratz, CEO of Galaxy Digital, invested $15 million in the crypto custody service BitGo. Data from PitchBook, compiled by JMP Securities, shows that there are likely to be 145 crypto- and blockchain-related deals by the end of this year, well above the previous year’s count of 47.

Price-wise, some analysts believe that the calm in the markets is about to end. They expect Bitcoin to take a decisive direction within the next 1–2 weeks. Do the charts point to a potential breakout or a breakdown? Let’s find out.

BTC/USD

Bitcoin has failed to break out of the overhead resistance at $6,831.99, resulting in a move down. Currently, the price is at the moving averages, which might act as a support. However, if the bears break this level, the digital currency can slide to the next lower support at $6,250.

BTC/USD

A lack of follow-up buying after the surge on Oct. 15 is a bearish sign. It shows that the market participants are in a hurry to close their positions during every small rally. Both moving averages are flat and the RSI is close to the midpoint. This points to a consolidation in the near-term.

The BTC/USD pair can remain range bound between $5,900–$6,832 for the next few days. A breakout or breakdown of this range will start the next directional move.

On the upside, the bulls should watch the levels of $7,400 and $8,400. On the downside, a break of $5,900 will trigger panic selling among the participants, plunging the price to $5,450, and further to $5,000 in a short time.

We suggest traders close their long positions if the pair breaks the support at $5,900.

ETH/USD

Ethereum remains weak. It might retest the bottom of the range of $192.5–$249.93. If the bears succeed in breaking down of the range, a retest of a Sept. 12 low of $167.32 is probable.

ETH/USD

Any attempt to pull back will face a stiff resistance at the moving averages and above that at $249.93. The ETH/USD pair will show signs of strength if it sustains above the range.

The traders should wait for a breakout and close (UTC time frame) above $250 to initiate any long positions. Until then, it is best to remain on the sidelines.

XRP/USD

Ripple has marginally dipped below the 20-day EMA, which shows profit booking at higher levels. Both moving averages remain flat and the RSI is close to the neutral territory. This points to a consolidation in the short-term.

XRP/USD

The XRP/USD pair will become negative on a breakdown of the support at $0.37185. On the upside, it has a slew of resistances at $0.5, $0.55 and $0.625. It will resume its uptrend if it sustains above $0.625. We don’t find any reliable buy setups at the current levels; hence, we are not suggesting any trades on the pair.

BCH/USD

A lack of buying has pushed Bitcoin Cash to the support line of the symmetrical triangle. A breakdown of the triangle will resume the downtrend and sink prices to $300 with a minor support at the Sept. 11 intraday low of $408.0182. Therefore, traders should protect their long positions with the stops at $400.

BCH/USD

The 20-day EMA has started to turn down after remaining flat for the past few days. The RSI is also in the negative territory. This shows sellers have the upper hand. The BCH/USD pair will show signs of strength if the bulls break out of the triangle.

EOS/USD

There is nothing much happening in EOS as it continues to trade close to the moving averages. It has been trading inside the range $4.4930–$6.8299 for the past two months. The flat moving averages and the RSI in the neutral territory suggest equilibrium between the buyers and the sellers.

EOS/USD

The buyers will have an upper hand if they succeed in pushing the EOS/USD pair above the overhead resistance of $6.8299. A break down of the support zone at $3.8723–$4.49 will tilt the advantage in favor of the bears. Therefore, the traders holding long positions should keep a stop loss of $4.9.

XLM/USD

Stellar broke out of the overhead resistance at $0.24987525 on Oct. 17 and 18. However, on both occasions, the bulls could not sustain the higher levels.

XLM/USD

We remain positive on the XLM/USD pair because it continues to trade above both moving averages, which are starting to turn up. If the bulls break out and close above the overhead resistance, it will invalidate the bearish descending triangle, which is a bullish sign. Therefore, we retain our buy suggested in the previous analysis.

On the downside, the digital currency will find buying support at the moving averages. Any break of this support can retest the zone between $0.204 and $0.2148.

LTC/USD

Litecoin continues to trade below both moving averages, which is a negative sign. A break below $52 can result in a drop to the bottom of the range at $49.466. This will be the fourth visit to the bottom of the $49.466–$69.279 range since Aug. 14.

LTC/USD

If the bears break down and close below the range, a fall to the next lower support of $40 is probable.

The LTC/USD pair will signal a change in trend only after a breakout and close (UTC time frame) above the range. We believe the traders should wait for a break out of the range before initiating any long positions in it.

ADA/USD

Cardano turned down from the 50-day SMA on Oct. 17. It is likely to find some support at $0.069, below which it can drop to the critical support at $0.060105.

ADA/USD

Both moving averages are flat and the RSI is inching towards the neutral territory. This shows a balance between both the buyers and the sellers.

The ADA/USD pair will pick up momentum if it scales above the overhead resistance at $0.094256 and $0.111843. We don’t find any buy setups at the current levels; hence, we are not proposing any trades.

XMR/USD

After failing to scale above the moving averages in the past few days, Monero has again dipped below the support of $107.8. It can now slide to the next support at $100, below which a drop to $81 is possible.

XMR/USD

Both moving averages are flat and the RSI is in the negative territory. This shows the probability of a consolidation in the near-term.

The XMR/USD pair can move up to $128.65 if it scales above the moving averages. We shall wait for a new buy setup to form before suggesting any trades.

TRX/USD

TRON has been holding above the 20-day EMA for the past four days, which is a positive sign. It will indicate a change in trend if the bulls break out and close (UTC time frame) above the overhead resistance at $0.02815521.

TRX/USD

The traders can buy a close (UTC time frame) above $0.03 with a target objective of $0.41. The initial stop loss can be kept at $0.02, which can be raised later.

The TRX/USD pair will weaken and sink to $0.02 if it breaks below the moving averages. We don’t find any trade inside the $0.0183–$0.02815521 range.

The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.

Bitcoin Trades at $300 Premium on Bitfinex as Tether Faces Panic

As Tether faces credibility issues in the cryptocurrency market, holders are taking a 5 percent haircut as they exchange the stable coin for other cryptocurrencies, including Bitcoin, on the Bitfinex exchange. The increased fear that each token issued may not be backed by one U.S. Dollar has resulted in a premium of up to $300 on the price of Bitcoin traded on Bitfinex.Tether Holders Take Five Percent Haircut As They Exchange for BitcoinTether (USDT) has seen its market capitalization plunge from the $2.8 billion area to just above $2 billion in a matter of ten days as holders moved approximately $800 million elsewhere. Bitcoin is the champion most Tether holders are looking for as they dump their tokens.Bitcoin is being traded at $6,732 on Bitfinex, nearly $300 more than the $6,443 priced on the Coinbase exchange and other operators. Richard Johnson, an analyst at Greenwich Associates, explained the phenomenon.“So if most Bitfinex traders are holding Tether instead of USD, then this represents the premium they need to pay. Another way of looking at it, is that holders of Tether have taken a 5 percent haircut on their so-called stable coin.”The cryptocurrency market questioned whether Bitfinex has gone insolvent when it announced a temporary pause on fiat deposits for certain customers amid processing complications. The exchange denied it. Alex Michaelis, co-founder of researcher CoinSchedule, believes there is no reason to think otherwise, he told Bloomberg.“I don’t think Bitfinex is going under, we met with them last week and that is not the impression we got. What I think happened is that a lot of people think Tether is going bust, so they are exchanging their Tether for Bitcoin and pushing the price up there.”Tether has found many critics throughout the years as many suspected Bitfinex was not rigorously backing the token with USD. The controversy intensified when the exchange decided to end their relationship with Friedman LLP, the company responsible for auditing Tether, and was subpoenaed by the U.S. Commodity Futures Trading Commission.Lex Sokolin, a partner at Autonomous Research LLP, argued that its collapse would crunch pricing and liquidity. On the other hand, it may “clean up the activity to be more reflective of real demand.”Tether still dominates the stable coin daily trading volume and market cap. Its economy is worth just over $2 billion, with the second largest stable coin, TrueUSD, having a market cap of $160 million. Other tokens include Paxos Standard Token, Dai, USD//Coin, and bitCNY. Image from Shutterstock

Pantera Capital CEO: A Bitcoin ETF is ‘Years Away’

Pantera Capital CEO Dan Morehead believes a Bitcoin-ETF approval is insignificant in comparison to Bakkt and Fidelity launching cryptocurrency trading platforms for institutional investors.


Too Early for a Bitcoin ETF, Says Pantera Capital CEO

Yesterday, Pantera Capital founder and CEO, Dan Morehead spoke with Messari director of business development and panel moderator Katherine Wu at Bloomberg’s Institutional Crypto Conference.

Pantera Capital has made media waves lately as the firm is one of the first blockchain investment firms and a recent statement to investors floating around Twitter showed the firm’s investment portfolio down 73% on their cryptocurrency investments.

While speaking about the future of cryptocurrency Morehead downplayed the urgency and importance of an exchange-traded fund (ETF) backed by Bitcoin 00.

Dan Morehead

When asked about whether the approval of a Bitcoin ETF and the belief that this would bring about a strong trend reversal held merit, Morehead said, “I think an ETF is years away.”

He explains that “very few people know that the last asset class that was certified for an ETF was copper. It took three years, even though copper has been around for 8,000 years.”

Investors, Curb Your Enthusiasm!

According to Morehead, “an EFT is not news” and the fact that everyone is hinging the future success of cryptocurrency on its approval is a bit naive. Morehead poetically opined that:

The SEC doesn’t want widows and orphans buying Bitcoin ETFs. They don’t even know if Bitcoin is officially a security.

Regarding recent Bitcoin ETF postponements and rejections, Morehead suggested that it is much too early for market makers to seek approval for such an instrument as the cryptocurrency market is still in its infancy and that profit savvy investor “overreacted.”

Basically, the CEO is suggesting that cryptocurrency investors pump the brakes and play the long game as the real noteworthy news events are “the Fidelity and the Bakkt thing.”

Fidelity

Even though Bakkt is scheduled to launch next month and Fidelity just launched their crypto platform for institutional investments, Morehead says,

When we look back at this five years from now, I think those are going to be the events that spurred an enormous amount of capital into the industry.

Morehead echoes former Goldman Sachs partner, Mike Novogratz, who puts the start of real institutional flows into cryptocurrencies for the same time period, namely Q1 and Q2 2019.

Bitcoinist also reported in July that the final decision for the SEC to rule on the SolidX/VanEck Bitcoin ETF is expected sometime in February or March 2019, according to legal expert, Jake Chervinsky.

Do you think the SEC will approve a Bitcoin-ETF anytime soon? Share your thoughts in the comments below! 


Images courtesy of Shutterstock