This following analysis is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.
The Russian central bank’s decision to block bitcoin exchange websites hardly caused any blip in its prices. Though it’s true that Russia has a small market share in cryptocurrency trading, still, this news should have unsettled the weaker bulls to sell because prices are close to the all-time highs.
However, the strength in the cryptocurrency near its highs shows that the bulls are unwilling to part with their positions. This increases the possibility of a breakout to new highs. So, what should you do now? Wait for a new high or book out?
Traders who initiated long positions at $4150 based on our previous recommendation are sitting on huge profits.
Though bitcoin’s price action is strong and a breakout of $5000 looks likely, we expect the zone between $4680 and $4975 to act as a major resistance.
Therefore, traders who went long at $4150 levels can book 50% profits at the current levels of $4808. We advocate booking partial profits to reduce the overall risk.
The stop loss on the remaining position, which was at $3950 should be raised to $4400. We expect the bulls to buy aggressively until the cryptocurrency stays above $4500. The cryptocurrency will turn negative on a fall below both the 20-day exponential moving average (EMA) and the 50-day simple moving average (SMA).
Ethereum continues to lag behind the leader, bitcoin. While bitcoin is close to its lifetime highs, ethereum has been stuck in a range for the past few days. However, its volatility has increased in the last two days.
The bulls have pushed ethereum above $317 on each of the last three days, however, they have not been able to sustain the breakout. As a result, the emboldened bears pushed the cryptocurrency below $278 levels yesterday, nevertheless, aggressive buying the bulls has again propped it above $300.
The digital currency will start the next leg of the uptrend once it breaks out and closes above $317. Therefore, we recommend long positions on a close above $317. The stop loss for the trade can be kept at $278. The profit objective is $354.
On the other hand, if the digital currency breaks down below $278 and sustains it, a fall to 241 is likely.
Litecoin continues to trade inside the range with a negative bias. Yesterday, the digital currency broke below the $50 mark and slid to $48.01 levels. Today, however, the digital currency has recovered and is attempting to climb above $50 once again.
Inside the range, price moves are likely to remain volatile. Therefore, we recommend buying litecoin at $46, on its way up from the lower end of the range at $44. This trade has a target objective of $56. The stop loss can be kept at $42. Please don’t buy when the cryptocurrency is falling because a break below $44 can sink it to $32.6 levels.
Another possible trade can be initiated on a breakout and close above $58, which has a pattern target of $71. The stop loss for this trade can be kept at $48.
* All the market data is provided by the HitBTC exchange.Follow us on Telegram.
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