Has bottomed out or will it slide again to make new lows? Though this is a difficult question to answer, we can get some idea by looking at the charts. Fundstrat’s Tom Lee believes that the bear market is over and might hit a high in 2020.
In a bear market, when the price breaks above long-term moving averages and remains near overbought levels for an extended period, it is usually a confirmation that the bottom is in place. has closed in the for three successive months, the first such instance since topping out in January 2018. Will it lead other higher or will it take a pause? Let’s find out.
/USDT
is in an uptrend. Both the moving averages are sloping up and the RSI is in the positive territory. In the past six days, the digital currency has taken support at the 20-day EMA on four occasions. This shows that the bulls are buying the dips to the moving average. Now, they will try to push the price towards the overhead resistance of $5,900. There is a minor resistance at $5,598.99, which is the intraday high of April 23, but we expect this to be crossed.
We anticipate a strong resistance between $5,900 and $6,200. is likely to correct or enter into a consolidation when it reaches this overhead resistance zone.
The only bearish development on the chart is the negative divergence on the RSI, which is a red flag. Contrary to our assumption, if the bulls fail to breakout of the immediate resistance at $5,598.99, the bears will again attempt to sink the price below the 20-day EMA. If successful, a drop to $4,871 and below that to the 50-day SMA is probable. Traders can remain on the long side until the price remains above the 20-day EMA.
ETH/USD
plunged back into the ascending triangle on April 25, which was a bearish sign. Failing to defend the breakout level shows a lack of follow up demand. However, we like the way the bulls have defended the 50-day SMA.
The pair has bounced off the 50-day SMA and is currently attempting to breakout of the downtrend line. If successful, it can move up to $180 and above it to $187.98. It is likely to pick up momentum after rising above $187.98.
The first target to work on the upside is $225. Above it, a rally to the pattern target of $250.811 is probable. Aggressive traders can initiate a long position on a breakout and close (UTC time) above the downtrend line. The stop loss for the trade can be kept at $148. This is a risky trade, hence, please use only 50% of your usual allocation.
Our bullish view will be invalidated if the price reverses direction from the current levels and breaks down of the 50-day SMA. In such a case, a drop to the trendline of the ascending triangle is likely.
ATOM/
As Cosmos has a short history, we are using a 4-hourly chart to analyze it. Following its listing, it witnessed volatility and plunged to 0.00052019 from a high of 0.001390 within the first four hours. That is a fall of 62.57%. Thereafter, from the lows, the recovery reached 0.00099970 levels, close to the psychological resistance of 0.001.
The pair has formed an ascending triangle pattern that will complete on a breakout and close (UTC time) above the overhead resistance of 0.00099970. The minimum target objective of such a move is 0.00147921. This will carry it to a new high, which is a bullish sign.
Traders can buy on a close (UTC time) above 0.001 and keep a stop loss of 0.0007. Partial profits can be booked close to 0.00145 and the rest of the positions can be trailed with a close stop loss because after it makes a new high, the momentum can carry it to 0.002 levels.
Our bullish view will be invalidated if the price slips below the trendline of the ascending triangle. In such a case, it can correct to 0.00055701, followed by a retest of the lows. A breakdown below the low will signal weakness.
Published at Wed, 01 May 2019 02:13:45 +0000
