Bitcoin, Ethereum, Ripple, Litecoin: Price analysis

Crypto companies are attracting talent from traditional industries. This shows that firms in the crypto space are preparing for the long-term, undeterred by the current bear market. Similarly, traditional companies are attempting gain footing in the crypto space. Ernst & Young, one of the Big Four auditing firms, has come up with a tool for calculating taxes on crypto holdings. The software will cater to both institutional and retail clients.

Japan is among the leaders in adopting cryptocurrencies. Major Japanese banks are gearing up towards improving blockchain and cryptocurrency services to their clients. The government of Argentina has also taken the plunge as it plans to invest in crypto projects along with Binance labs and crypto exchange LatamEx.

Every day the crypto markets are treated to improved fundamentals. It is only a matter of time before the price of cryptocurrencies responds positively. What do the charts forecast? Let’s find out.

Trade 25 CFD's on the most popular cryptocurrencies with Varchev Absolute Trader 5:

BTC/USD

Bitcoin (BTC) held on to the 50-day SMA support and climbed above the 20-day EMA on March 5. This shows buying at lower levels, which is a positive sign. If the bulls continue the buying pressure and breakout of $3,900, a retest of $4,255 is probable.

Currently, both the moving averages are flat and the RSI is marginally positive. This points to a consolidation in the near term.

If the BTC/USD pair breaks out of $4,255, it will complete a double bottom pattern, that has a pattern target of $5,273.91. Though there is a stiff resistance at $4,914.11, we expect it to be crossed.

On the contrary, if the bears defend the overhead resistances and sink the digital currency below the 50-day SMA, a drop to $3,355.00 is probable. If this level breaks, the critical resistance is at the yearly low of $3,236.09. For now, traders can retain the stops on their long positions below $3,236.09. We shall soon recommend trailing the stop loss higher.

ETH/USD

Ethereum (ETH) took support at the 50-day SMA and bounced off it. Currently, it is facing resistance at $144.78. Both the moving averages are flat and the RSI is just above the midpoint. This points to a consolidation in the near term.

The next up move will start on a break out above $145. The target of this move is $167.32. If this level is scaled, the ETH/USD pair will pick up momentum. Hence, traders can continue to hold the remaining long positions with a stop loss of $125.

If the price reverses direction from the current level and breaks down of the 50-day SMA, it can plummet to $116.30, which is a major support. Below this level, the trend will turn in favor of the bears.

Trade 25 CFD's on the most popular cryptocurrencies with Varchev Absolute Trader 5:

XRP/USD

Ripple (XRP) has largely been range bound between $0.33108 and $0.27795 from Jan. 11. Repeated attempts to break out of the overhead resistance have failed to sustain above it. Both the moving averages are flat and the RSI is also at the midpoint. This points to a balance between demand and supply.

The next directional move on the XRP/USD pair will start either on a breakout of $0.33108 or on a breakdown of $0.27795. A breakout of $0.33108 can propel it to the resistance line of the descending channel. On the other hand, a drop below $0.27795 can sink the pair to the yearly low of $0.24508. Therefore, traders can keep the stop loss on the long positions below $0.27795.

LTC/USD

Litecoin (LTC) took support at the 20-day EMA and rallied on March 5. It broke above the overhead resistance of $53.40 and invalidated the developing bearish head and shoulders pattern. Failure of a bearish pattern is a bullish sign.

The LTC/USD pair is currently hitting against the $56.91 resistance. If the price scales above this level, it can move up to $61.5680 and above it to $65.5610. Traders can trail their long positions with a stop loss of $44. If the price closes (UTC time frame) above $56.91, stops can be raised to $50. As partial profits have been booked earlier, traders can trail the stop with enough wiggle room, but protect the paper profits.

Our bullish view will be negated if the digital currency turns down from the current levels and plunges below the 20-day EMA.

Read more:

• Bitcoin is changing hands for $24,000 in Iran, based on the “Official” exchange rate
• Tendayi Kapfidze: “bitcoin is a pyramid scheme
• Want to Invest in Crypto? Think About Buying Stocks
• According to this rumor: A single Bitcoin whale was responsible for the astronomical price hike in 2017
• Libra faces strong opposition and China embarks on a race to launch its own global cryptocurrency