Top 5 cryptocurrencies to watch this week: BTC, LTC, BCH, XMR, THETA
The supply and demand equation determines the price of an asset. In the past few months, the uptick in institutional demand for Bitcoin (BTC) has resulted in a stiff bull run. This uptrend may continue until demand exceeds supply.
On-concatenation information shows two withdrawals of more than 12,000 Bitcoin each from Coinbase Pro this calendar week, which is merely curt of the 28,000 Bitcoin mined in November. This suggests that demand from institutional investors remains intact even afterwards Bitcoin's recent rally because they are bullish in the long term.
Meanwhile, Mexico's second richest human being, Ricardo Salinas Pliego, said in an interview with Cointelegraph that Bitcoin has been his "best investment always." Salinas has about 10% of his liquid portfolio in Bitcoin and he is in no hurry to sell as he wants to "sit effectually for another five or ten years."
The stiff demand and HODLing by institutional investors has propelled Bitcoin's market capitalization to in a higher place $500 billion for the first time. It has also boosted Bitcoin'southward market authority to above seventy.five%, which suggests that the arrival of money has largely been into Bitcoin.
Nonetheless, at some point, fresh money will stop flowing into Bitcoin and that could result in a correction or consolidation. Traders may then divert their attention to select altcoins, which could pick up momentum.
Let's look at the charts of top-five cryptocurrencies that could rally in the adjacent few days.
BTC/USD
Bitcoin price broke above the $24,302.50 overhead resistance on December. 25 and resumed the uptrend. This breakout has a target objective of $28,664.04 and the cost hit an intraday high at $28,419.94 today.
The BTC/USD pair's incessant rising has sucked in traders who had been waiting on the sidelines for a dip to enter. Institutional investors, momentum traders, and speculators have also joined the party that has kept the uptrend intact.
However, the electric current pace of rise is not sustainable. The long wick on today's candlestick suggests profit booking at higher levels. Fifty-fifty if the uptrend continues, the pair may again face selling about the $thirty,000 mark.
If the uptrend stalls, the short-term traders may blitz to the exit and that could pull the price back to the 20-day exponential moving average ($22,613). If this support holds, the pair could again attempt to resume the uptrend.
On the other hand, a break below the 20-day EMA could drag the price to the critical back up at $20,000. Therefore, traders may avoid chasing prices higher.
The 4-hour chart shows the formation of a Doji candlestick pattern, which suggests indecision among the bulls and the bears. Although the uncertainty resolved to the downside, the long tail on the candlestick shows buying at lower levels. This suggests traders are purchasing on every minor dip.
However, if the bulls fail to propel the toll in a higher place $28,419.94, the selling may go along and that could pull the toll down to the xx-EMA at $25,446. The overbought levels on the relative strength index also indicate to a possible correction.
A break below the 20-EMA and the back up at $24,302.50 will suggest that the momentum has weakened.
LTC/USD
In a stiff uptrend, traders commonly buy the dips to the twenty-solar day EMA ($105) and that is what happened on December. 23. Litecoin (LTC) rebounded sharply on December. 24 and the momentum picked upwards later the bulls pushed the price to a higher place the $118.64 to $124.12 overhead resistance zone.
The immediate target is $145 only if the bulls exercise non permit the price to driblet and sustain beneath $124.1278, the rally may extend to $180. The rising moving averages and the RSI in the overbought zone suggest bulls are in command.
This bullish view will exist invalidated if the LTC/USD pair turns around from the electric current levels or the overhead resistance and drops beneath the xx-day EMA. Such a move volition advise that traders are not buying the dips.
The 4-hour chart is also in an uptrend with both moving averages sloping up and the RSI in positive territory. However, the momentum has weakened every bit bulls are facing resistance well-nigh $136.
If the bulls practise non permit the price to sustain below the xx-EMA, the pair could be on target to reach $145. But if the price turns down from the electric current levels and breaks below $118.6497 and the fifty-uncomplicated moving average, it will suggest the start of a deeper correction.
BCH/USD
Bitcoin Cash (BCH) has been repeatedly attempting to break above the $353 overhead resistance for the past few days. Although the bulls had pushed the toll above $353 on 2 occasions, marked via ellipse on the chart, they could not sustain the college levels.
This suggests traders are aggressively selling on any rise above $353. Nonetheless, the positive thing is that the bulls have accumulated on declines beneath $280 and are currently attempting to push the toll above $353.
If they succeed, the BCH/USD pair could kickoff its journeying toward $500. It may not be a straight dash to the target objective because the bears will again try to stall the rally at $409 and $430. But if both these levels are scaled, the pair could pick up momentum.
The upsloping moving averages and RSI above 61 suggest bulls have the upper paw.
The 4-hr nautical chart shows the pair is currently trading inside a large range between $255 and $370. The bulls are currently attempting to bulldoze the price above the $353 to $370 overhead resistance.
If they succeed, the pair could start an uptrend that has a target objective of $485. The moving averages take completed a bullish crossover and the RSI is in the positive territory, which suggests that bulls take the upper hand.
Even so, if the price again turns down from the current level or $370, the pair may extend its stay inside the range for a few more than days.
XMR/USD
The long wick on Dec. 23 candlestick shows traders booked profits after Monero (XMR) hitting $167, the target objective of the breakout from the changed caput and shoulders pattern.
However, the positive matter was that the bulls purchased the dip to the 20-24-hour interval EMA ($151) on Dec. 24. The upsloping moving averages and the RSI in the positive zone propose that the sentiment remains positive.
The long tail on today's candlestick shows that bulls are buying on dips. If they tin can push and sustain the price above $170, the XMR/USD pair could rally to the adjacent target objective at $197, simply below the psychological resistance at $200.
This positive view volition exist invalidated if the price turns down from the current levels and breaks below the 20-day EMA. Such a movement could point a deeper correction to $135.50.
The 4-hour chart shows that the pair has been trading inside an ascending channel but the bulls have failed to button and sustain the toll into the summit half of the channel. The pair has ordinarily turned down from the midpoint of the channel.
This suggests short-term traders are taking profits at intermittent levels. However, if the bulls can push and sustain the toll above the midpoint of the aqueduct, the pair could rally to the resistance line of the channel, indicating a pick-up in momentum.
On the other hand, a break below the support line of the channel could signal a possible change in the curt-term trend.
THETA/USD
THETA has rallied vertically in the by few days, which pushed the RSI deep into the overbought territory. This has started a correction as seen from the precipitous fall today.
However, if the toll does not dip and sustain below the 38.ii% Fibonacci retracement level at $1.31994, it will propose that traders continue to buy on dips equally they anticipate the rally to extend farther.
If the bulls can push the price above $1.742, the THETA/USD pair could rally to the $2 psychological level so to $2.40.
Contrary to this bullish assumption, if the bears sink the toll below the 50% Fibonacci retracement level at $ane.18957, it will suggest that the momentum has weakened.
The 4-hour chart shows that the bulls are currently attempting to defend the 20-EMA. If the pair rebounds off this level, the bulls will endeavor to resume the uptrend. The upsloping moving averages and the RSI in the positive territory suggest that bulls are in control.
Reverse to this assumption, if the pair breaks below the 20-EMA, it will suggest that the curt-term momentum has weakened. That could pull the cost down to the next support at the 50-SMA.
The views and opinions expressed hither are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading motility involves adventure, you should conduct your ain inquiry when making a conclusion.
Source: https://cointelegraph.com/news/top-5-cryptocurrencies-to-watch-this-week-btc-ltc-bch-xmr-theta
Posted by: underwoodcolowerve.blogspot.com
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