Ever since the US President tweeted against cryptocurrencies, the community has been divided over the idea of a ban on Bitcoin in the US. Some speculated that a ban by Congress can be detrimental to the crypto industry. However, Binance CEO Changpeng Zhao believes that if Trump were to ban digital currencies it would only lead to an increased number of citizens wanting to buy them in the long run and this wouldn’t hurt Bitcoin or its traders and hodlers.
According to a leading survey, 4% of Americans have invested their savings into cryptocurrencies and they are willing to hold for a decade. Millennials have shown over 9% interest in Bitcoin. There are over 4 Million crypto users in the US alone which is quite surprising given the horrible winter that we’ve been through in terms of market caps. Most traders are no longer concerned with price volatility and are quite positive that Bitcoin’s price will correct upwards as we near the halving of 2020.
Let’s discuss the price action of BTC, ETH, XRP, LTC, BNB and EOS in the past week.
Bitcoin (BTC) has dipped back to the critical support zone of $10,146 to $10,500. This is a make or break level for traders. If this zone breaks down and the price falls below $9200, the uptrend will be over and the price can tumble to the next support zone of $6,933.90–$7,451.63.
A bearish descending triangle pattern is developing and will be completed on a close below $9,500. If the BTC/USD pair bounces off the immediate support and breaks out of $11,000, it will indicate the strength of bulls.
The bulls are attempting to defend the uptrend line in Ethereum. If it rebounds off the uptrend and rises above the resistance level, it will indicate strength of the bulls. The profit objective will be a rally to $350 and the stop loss will be below the recent low of $190.
If the bulls fail to defend the uptrend line and the ETH/USD pair plunges below $200 the uptrend will end and the pair can drop below $100. The bears are taking over here. Nothing surprising. We’ve been talking about Ethereum’s death for a while here at CTN.
Let’s discuss Ripple (XRP). Buying an underdog and waiting for a rally is the goal here. XRP has been stuck in between $0.20 to $0.40 for the past several months. This has shown that traders are losing interest and the demand is falling.
Buyers emerge when the price dips to $0.20 and sellers come to scene just above $0.3-$0.4. Due to this uncertainty the risk-to-reward ratio is very attractive with XRP.
Litecoin (LTC) is trying to bounce from just above the support level of $80. The bulls will, again, try to propel the price above the downtrend line and take over the bears. If the price sustains above the downtrend line it will indicate a change in trend and price will correct upwards.
If the LTC/USD pair fails to break out of the downtrend line, price will rapidly drop below $80. A breakdown of the $76–$83.65 support zone can drag the price to the next support at $55. Keep your eyes open LTC hodlers…
Binance Coin (BNB) has regained its upward momentum. Since early February price has been dipping and it has finally reversed direction. This is the time we’ve been waiting for BNB hodlers/buyers to take action.
However, if the BNB/USD pair plummets below the uptrend line, it can slip to $24- $22.
EOS was on a downtrend and has been recovering over the past one week. EOS is currently trading at $4.57 and it is showing signs of a takeover by the bulls.
A fall below $3.80 can have it dropping till it hits the next support at $2.90. There is a bullish set up in play at the moment, any deviation from the same will lead to a bear market.
In the coming week we will see more updates from the US Senate Banking committee on Libra and the US Congress may change its stand on cryptocurrencies. These developments will govern price action over the next few days.