Price Analysis Jan 27: BTC, ETH, XRP, BCH, BSV, LTC, EOS, BNB, ETC, XLM
Most major cryptocurrencies have risen sharply from their recent lows which shows that bulls are building positions on every dip.
Investors are rushing into various safe haven assets as the coronavirus death toll in China rises and the virus spreads in various Asian countries, the US, parts of Europe and Australia. Usually, the initial reaction to any crisis is to dump all asset classes but gradually, the investors start to differentiate between asset classes as they analyze the effect the crisis can have on them.
After the initial sell-off in Bitcoin and other cryptocurrencies due to the coronavirus scare, the crypto markets have stabilized and are rising once again. The total market capitalization of the crypto universe has risen from a low of about $227 billion on Jan. 24 to over $243 billion. This shows that traders are buying cryptocurrencies.
However, the reaction to such a crisis is generally temporary. If the outbreak gets contained, the crypto markets might give up some of the recent gains as the focus shifts back to fundamentals.
Daily cryptocurrency market performance. Source: Coin360
Major Swiss banking firm Julius Baer has become the latest bank to offer crypto services to its clients. The bank announced the launch of digital assets trading and custodial service to cater to the increasing demand from its clients.
Can the bulls build on the current recovery in major cryptocurrencies and push the prices above their recent highs? Let’s analyze the charts.
The bulls defended the 20-day EMA support at $8,371, which is a positive sign. Bitcoin (BTC) will now attempt to resume the up move and scale above the overhead resistance at $9,198.61. If successful, a move to $10,360.89 is possible.
BTC USD daily chart. Source: Tradingview
Both moving averages are gradually sloping up and the RSI is in positive territory, which suggests that bulls have the upper hand.
Our bullish view will be invalidated if the bears sink and sustain the price below the 20-day EMA. Below this level, the BTC/USD pair can drop to the critical support at $7,856.76. The 50-day SMA at $7,752 is just below this level. Hence we anticipate the bulls to defend this zone aggressively.
A breakdown of the 50-day SMA will be a huge negative. Therefore, traders can retain the stop loss on the long positions at $7,600.
Ether (ETH) has rebounded off the 20-day EMA. It is likely to reach the overhead resistance at $173.841, which is again likely to act as a stiff resistance. However, with the 20-day EMA sloping up and the RSI in the positive zone, the advantage is with the bulls.
ETH USD daily chart. Source: Tradingview
If the bulls can sustain the price above $173.841, a rally to $197.75 will be on the cards. We anticipate a stiff resistance at $197.75, hence, the traders can book partial profits close to it.
Our bullish view will be negated if the price turns down from the overhead resistance and dips below the $157.5 to $151.829 support zone. Therefore, traders can hold long positions with stops at $150. We might suggest trailing stops higher after the ETH/USD pair sustains above $173.841.
Although XRP dipped below the neckline of the inverted head and shoulders (H&S) pattern, the bulls defended the 50-day SMA at $0.21. They have pushed the price back above the neckline on Jan. 26, which suggests buying at lower levels.
XRP USD daily chart. Source: Tradingview
However, the rebound is facing resistance at $0.2326. If the price turns down from the current levels, the bears will again attempt to break it below the 50-day SMA and the $0.20041 support zone.
If the support zone holds, the XRP/USD pair might consolidate for a few more days. The flattish moving averages and the RSI just above 50 level also suggests a range-bound action.
Nonetheless, if the bulls push the price above $0.2326, a move to $0.25401 is likely. If this level is scaled, the rally can extend to $0.31503. The traders can hold their long positions with stops at $0.1995.
Bitcoin Cash (BCH) has rallied sharply in the past two days and has broken out of the overhead resistance at $360. This is a positive sign as it shows that bulls used the recent correction below $306.78 to build long positions.
BCH USD daily chart. Source: Tradingview
Both moving averages are sloping up and the RSI is close to the overbought zone, which suggests that bulls are back in command.
The next level to watch on the upside is $403.88. If the bulls can push the price above this level, the BCH/USD pair can rally to $480. Our bullish view will be invalidated if the price turns down and breaks below $296.13.
The bulls are attempting to carry Bitcoin SV (BSV) to the overhead resistance at $337.80. Both moving averages are sloping up and the RSI is in the positive zone, which suggests that bulls have the upper hand.
BSV USD daily chart. Source: Tradingview
A break above $337.80 will be a huge positive. Above this level, the BSV/USD pair can retest the lifetime highs at $458.74.
Conversely, if the bulls fail to push the price above $337.80, the pair might remain range-bound for a few more days. It will turn negative on a break below the strong support at $236.
Litecoin (LTC) has picked up momentum in the past two days and is likely to move up to $66.1486. The 20-day EMA has started to turn up once again and the RSI is also moving higher in the positive territory. This shows that bulls are in the driver’s seat.
If the bulls can push the price above $66.1486, it will complete a bullish cup and handle pattern that has a minimum target objective of $96.439.
LTC USD daily chart. Source: Tradingview
Our bullish view will be invalidated if the price fails to break out of $66.1486. In such a case, the LTC/USD pair might remain range-bound for a few more days. The pair will turn negative if the bears sink the price below the critical support at $50.
EOS has bounced sharply in the past two days, which shows strong buying close to the 20-day EMA at $3.47. The 20-day EMA has turned up once again and the RSI is in the overbought zone, which suggests that bulls are in command.
EOS USD daily chart. Source: Tradingview
The bulls will now attempt to propel the price above the overhead resistance at $4.24. If successful, a rally to $4.8719 is possible.
Conversely, if the bulls fail to scale above $4.24, the pair might consolidate for a few days. The EOS/USD pair will turn negative if the price turns down and sinks below the recent low at $3.3555.
Binance Coin (BNB) remains range-bound between $16.50 and $18.50. The bulls purchased the dip to $16.50 and are currently attempting to carry the price to the resistance of the range at $18.50.
BNB USD daily chart. Source: Tradingview
If the bulls can push the price above $18.50, a rally to $21.80 is possible. On the other hand, if the price again turns down from $18.50, the BNB/USD pair will extend its stay inside the range for a few more days.
The pair will turn negative on a break below the critical support at $16.50. Therefore, the long positions can be held with the stops at $15.90.
The sharp rally in Ethereum Classic (ETC) has again propelled it into the top ten list. The bulls have pushed the price above the stiff overhead resistance at $10. If the price can sustain above this level, it will signal the start of a new uptrend.
ETC USD daily chart. Source: Tradingview
The first level to watch on the upside is at $12.04 and if this level is crossed, the rally can reach $16.60. The upsloping moving averages and RSI in overbought territory suggests that bulls are firmly in command.
Our view will be invalidated if the price fails to sustain above $10. In such a case, a drop to the recent lows at $7.7853 is possible. The ETC/USD pair will turn negative if the bears sink the price below this support.
Stellar Lumens (XLM) has bounced off the 20-day EMA. The bulls will now attempt to push the price above the recent highs at $0.066261. If successful, the altcoin can rally to the next overhead resistance at $0.088708.
XLM USD daily chart. Source: Tradingview
Conversely, if the price turns down from $0.066261 once again, the XLM/USD pair can remain range-bound for a few days.
The pair will turn negative if the price turns down and plummets below $0.054954. Below this level, a drop to $0.051014 is possible.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.