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The Chinese traders don’t want to miss the action in trading cryptocurrencies. Therefore, they are moving over to Hong Kong as the Chinese exchanges shut down.
Elsewhere, Japan, South Korea and the US are moving ahead with steps that will promote the digital currency markets. As a result of these positive steps, the virtual currencies continue their march higher.
So, has the pullback run its course or is there more steam left? Let’s see.
Traders who followed our previous recommendations would have entered long positions around $3,900 and $4,120, levels marked on the chart via ellipse. Though both the positions are in profit and our target objective is $4,680, we recommend selling about 30 percent of the position at the current levels of $4,418 and raising the stop loss on the rest to $4,000.
That way, our entire remaining position will become risk-free and we will also pocket some profit.
Our first target objective is $4,680, where we shall book profits on another 20 percent of the position because we expect some resistance to creep in.
If Bitcoin breaks out of the $4,680 levels, it is likely to retest the highs, where we plan to book profits on the remaining 50 percent of our original position.
On a fall, the digital currency will find support in the $4,000 to $4,165 zone. Once $4,000 level breaks, the virtual currency can extend its fall to $3,850 and thereafter to $3,600 levels.
We don’t have any live trades in Ethereum. The digital currency has been consolidating in a tight range of about $280 to $310 for the past seven days. This tight range will soon resolve itself either to the upside or downside.
If the cryptocurrency breaks out of $317 levels, it will gain momentum and quickly rally to $344, where we expect some resistance to creep in. If this level is crossed, then a move to $400 to $420 levels is likely. Therefore, we recommend buying at $317.
However, if Ethereum breaks down of the uptrend line, it will invalidate the bullish pattern and a move to lower levels of $255 is likely. Therefore, we want to keep a stop loss just below the trendline at $275 once our buy levels are triggered.
We recommend tightening the stop loss if the virtual currency struggles to breakout of $344 levels.
The level of interest in Bitcoin Cash has dwindled down, which has resulted in a range bound action in the last few days. The cryptocurrency is even finding it difficult to rally to the highs of the range.
For the past few days it has remained in the lower half of the range. Therefore, we don’t recommend any trading positions in Bitcoin Cash.
We shall resume trading in Bitcoin Cash if it breaks out of the range or if it strengthens the range with two touches on the upper end of the range and two bounces off the lower end of the range.
Ripple is testing our patience, as it has been range bound for the past five days. Our long positions are at a marginal loss. We want to raise our stop loss to $0.18500 levels because if the digital currency breaks down of the small uptrend line, it can correct to $0.16600 levels.
The cryptocurrency will gain strength above $0.22000 levels. Our target objective remains $0.25000.
We don’t see any pattern developing on ripple. Therefore, lackluster trading is likely to continue for a few more days.
We don’t have any trades on Litecoin because it never reached our buy levels of $58.
The digital currency did not breakout of the ascending triangle. The pattern is now invalid as the price has broken down of the uptrend line. Litecoin is likely to remain in the range of $44 and $57.
We have two trade recommendations on Litecoin. First is a buy at $58 with a stop loss of $50, if the cryptocurrency breaks out of the range.
However, if Litecoin falls to the lower end of range before breaking out of it, we shall buy around $44 and keep an SL of $40. For this trade, our target objective is $57.