Price Analysis 30/09: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, XLM, LEO

Various cryptocurrency operators have joined hands to launch a rating system that will define how close a digital asset resembles a security. On a scale of one to five, one will be awarded to cryptocurrencies that are  least characteristic of a security, whereas five will have the most similarities to a security. This rating system will provide clarity to asset managers who have stayed away due to the uncertain legal status of the cryptocurrencies.

When sentiment turns bearish, many negative voices can be heard. Mark Cuban has reiterated his negative stance on Bitcoin (BTC) and has said that he would rather hold bananas. While it is easy to follow the herd and turn negative, we believe that the current fall is showing signs that it might be a bear trap before the trend turns up once again.

Another important point to note is that the current pullback is being led by altcoins as Bitcoin’s dominance has dipped to 67.5%. This shows that bulls are finding a few altcoins attractive after the recent fall. We also find a few aggressive plays, which are counter-trend trades. Let’s consult the charts.

BTC/USD

Bitcoin again found buying support close to $7,700. This is a positive sign as it shows that bulls are keen to defend the critical support zone of $7,451.63–$7,337.78. The RSI continues to be in oversold territory, which suggests that a relief rally is likely. Any attempt to pull back is likely to face resistance at the moving averages, which are sloping down. The next dip toward $7,451.63 will confirm whether the bottom is in place.

Aggressive traders can keep a stop loss of $7,700. The first target objective is a rally to $9,080. A breakout of the moving averages will be a positive sign. The trend will turn positive on a breakout of the downtrend line.

Conversely, if the bears sink the BTC/USD pair below the $7,451.63–$7,337.78 zone, the sentiment will sour and will delay the next leg of the up move. However, we give it a low probability of occurring.

ETH/USD

Ether (ETH) has been trading above the critical support of $163.755 for the past three days. This is a positive sign as it shows buying at current levels. The positive divergence on the RSI also shows strength.

The pair has broken out of the immediate resistance of $176.445, which is a positive sign. It might face some resistance at the moving averages, above which, a rally to $203.708 is possible. Therefore, aggressive traders can buy at $178 and keep a stop loss of $160.

Contrary to our assumption, if the ETH/USD pair turns down from the moving averages and plunges below the $150–$163.755 support zone, it can correct to $122. 

XRP/USD

XRP has risen sharply above $0.24508. This is a positive sign as it shows buying at lower levels and indicates that the recent breakdown was a bear trap. The pullback might face some resistance at the moving averages and above it at $0.27795.

The traders can watch the next dip and buy if it does not break below $0.24508. That will signal a bottom formation. If the bulls can push the price above $0.27795, the XRP/USD pair can quickly rally to $0.34229. Conversely, if the pair turns down from current levels and plunges below $0.22, the downtrend will resume. The next support on the downside is at $0.19. However, we give it a low probability of occurring. 

BCH/USD

Bitcoin Cash (BCH) is trying to form a bottom above $220. Usually, after a breakdown from a critical level, that level is retested. In this case, a rally to the neckline of the head-and-shoulders pattern is probable.

If the bulls can push the price above the neckline and sustain it for three days, it will indicate that the lower levels are attracting buying. A trend change will be signaled after the BCH/USD pair scales above $360.

On the other hand, if the bears defend the overhead resistance and the price reverses direction from the neckline, a retest of $203.36 is possible. We will wait for the buyers to make a comeback before proposing a trade in it.

LTC/USD

Litecoin (LTC) is attempting a pullback, which is likely to face resistance at $62.0764. Both moving averages are sloping down and the RSI is close to the oversold zone, which shows that the trend is down and relief rallies will be sold into. The cryptocurrency will resume its downtrend if it turns from the downtrend line and plummets below $50.

The first sign of strength will be when the bulls sustain the price above $62.0764 for three days. That will suggest buying at lower levels. A breakout of the downtrend line will indicate a probable change in trend. The LTC/USD pair will pick up momentum on a breakout of $80.2731. We will recommend a long position on a breakout and close (UTC time) above the downtrend line.

EOS/USD

EOS is attempting a pullback, which is likely to face resistance at $3.1534. If the bulls can push the price above this resistance, it will be a positive sign as it will indicate that the current breakdown was a bear trap.

The EOS/USD pair will indicate a possible turnaround if the bulls can propel it above the downtrend line. It can thereafter move up to $4.24 and above it to $4.8719. The momentum will pick up on a break above $4.8719. We will recommend a long position on a breakout above the downtrend line. 

Conversely, if the pair turns down, either from $3.1534 or from the downtrend line, the bears will attempt to resume the downmove. A break below $2.4001 will be a negative sign.

BNB/USD

Binance Coin (BNB) has been trading in a tight range for the past three days. The bulls are trying to form a bottom close to $14.2555. A rise above $16.50 can carry the price to $18.30. The 20-day EMA is also located just above this level, hence, it is likely to act as a stiff resistance. With both moving averages sloping down and RSI in oversold territory, the advantage is clearly with the bears.

If the BNB/USD pair turns down from current levels and plummets below $14.255, it will resume its downtrend and can drop to the support line of the descending channel. The pair will turn positive after the price scales above the descending channel. Until then, every minor rally will be sold into. We will wait for a new buy setup to form before recommending a trade in it.

BSV/USD

Bitcoin SV (BSV) has been trading close to $85 for the past five days. The intraday range has shrunk, which shows that both the bulls and bears are waiting for a directional trend to form. If the price rises above $90, a pullback to $107 will be in the cards. We expect a stiff resistance at $107.

If the bears sink the BSV/USD pair below $78.506, a retest of $66.666 will be in the cards. The downsloping moving averages and the RSI in oversold zone show that bears have the upper hand. We will wait for a large range day to indicate the start of a pullback to the upside before suggesting a trade in it. 

XLM/USD

The bulls are again attempting to push Stellar (XLM) above the 20-day EMA. We like the way the small range days have resolved to the upside and it is being supported by a positive divergence on the RSI. If the price can rise above the 50-day SMA, it can move up to $0.088709, with a minor resistance at $0.072545. Aggressive traders can buy above the 50-day SMA and keep a stop loss of $0.051. 

Our short-term bullish view will be negated if the XLM/USD pair reverses direction from the 20-day EMA or the 50-day SMA and plummets to the recent lows of $0.051014. A breakdown to new lows will resume the downtrend. 

LEO/USD

UNUS SED LEO (LEO) has broken down of the minor support at $1.0467. It can now drop to the next support at $1.0075. With both moving averages sloping down and the RSI in the negative zone, advantage is with the bears.

However, we anticipate buyers to step in and defend the lows at $1.0075. The bounce off it is likely to face resistance at the support-turned-resistance of $1.0467. But if the bulls can push the price above it and the moving averages, it is likely to pick up momentum.

Contrary to our assumption, if the bears sink the LEO/USD pair below the support of $1.0075, it can lead to long liquidation. The next support on the downside is at $0.80. We will wait for the pair to form a reversal pattern before proposing a trade in it.

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.