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Most traditionalinvestors have stayed away from Bitcoin citing its volatility. Yet, this has not stopped Direxion Asset Management LLC from planning to list “leveraged” and “inverse” funds that will rise or fall twice as fast as the Bitcoinprice.
We had suggested initiating long positions in Bitcoin at $15,500 in our previousanalysis. The level was reached yesterday, Jan. 5, which triggered the long position. Subsequently, the price broke out of the resistance at $16,500 and rallied to a high of $17,083.67, where it witnessed profit booking.
The BTC/USD pair is still not out of the woods. If it returns from the current levels and breaks the neckline at $13,000, it will complete a complex head and shoulders pattern, which will be a bearish sign.
Therefore, we recommend keeping a stop loss of $15,000 in our positions. It’ll reduce our risk.
In case the bulls fail to break out of the ascending channel, a fall to the lower end of the channel at $840 is likely. That’s why we believe partial profits should be taken between $1,000 and $1,040 levels. Rest of the positions can be held with a close stop loss depending on the strategy of the trader.
If the bulls break out and sustain above $2,555, a move to $2,800 and thereafter to $2,900 is likely.
We don’t have a clear buy set up, so we are not recommending any trade.
Ripple is currently in a pullback after reaching a high of $3.317 on Jan. 04. However, the fall to $2.15 levels yesterday, Jan.5, was bought aggressively. In the near term, this is a critical supportpoint, below which the correction is likely to extend to $1.76 levels.
The first up move from March 2 to April 2 of this year saw about 1,100 percent rise. The second rally from April 25 to May 17 resulted in 1,183 percent gain. The most recent rally from Dec. 11 to Jan. 4 led to 1,390 percent growth.
However, this is not an exact science and the above-mentioned projections will be invalidated if Ripple breaks out and sustains above $3.317.
IOTA has been trading inside the $3.032 – $5.59 range since Dec. 06. Traders who follow us would have taken long positions at $3.904. For people who missed buying at those levels, we had suggested a buy at $4.121.
We suggest holding the long positions with a stop-loss of $2.85.
The bears could not capitalize on the neckline breakdown of the head and shoulders pattern on two occasions.
The cryptocurrency will become negative only on a breakdown below $175.
We expected NEM to face resistance at $2.13774 levels and it returned from $2.06278. The cryptocurrency corrected close to $1.42889, which is 50 percent Fibonacci retracement level of the recent rally from $0.795 to $2.06278.
If the $1.4 level holds, we expect the bulls to attempt to resume the uptrend once again. Therefore, aggressive traders can buy at $1.702 and keep a stop loss of $1.4. Our target objective is a retest of the highs. However, this is a risky trade and should be attempted only with about 25 percent of the usual allocation.
If the levelshold, we may see an attempt by the bulls to resume the uptrend. However, we expect to see profit booking at higher levels. We await a range bound move in ADA/BTC for the next few days.