One thing no one can wish away in the cryptocurrency industry is price analysis. Indeed, trades go on every second, and traders need to be able to predict the price. When they eventually learn how to place a trade, then they will have a chance at earning returns. Looking at the market, the total market cap has grown by $30B USD in the last 15 days. The SMA (Simple Moving Average) will be one of the indicators that help foresee the trends and adjust the trades accordingly.
With the latest market performance, the market is rebounding from its depressing lows. As Bitcoin (BTC) maintained $5,900 USD without dipping, this has encouraged some bulls to buy more. To attract institutional funds, many firms are launching new products. This signals the demand from the broader market.
Bulls Are Skeptical
In truth, bulls have grown increasingly skeptical whenever the market bears go away. Yes, the reason is that the last time they did otherwise; the market gave up. Sadly, it eventually crashed all the gains. It was a hard lesson to learn. At that point, BTC sustained its critical price. Unfortunately, that was not the case with the altcoins that crashed. Therefore, it is important to wait for a couple of days before proclaiming a market uptrend.
On Tuesday, Bitcoin broke the 50-day SMA, signaling good things to come. But the challenge lies in sustaining the bulls beyond 50-day SMA. Sure, the current spike can be considered a bull trap if the bears sink the gains. If that goes under $6,955.79 USD, it is a clear sign of a bull trap. On the other hand, if it is sustained above 50-day SMA, the next target is $8,566 USD rally. Some pullback will be expected at $7,198.3 USD, representing the Fibonacci 50%.
Being able to break out of the 20-day EMA is commendable, but the next hurdle is downtrend line 2. Truly, with the 50-day SMA moving slowly, the 20-day EMA has turned completely flat. From the foregoing, the XRP/USD pair is likely not to face a fierce resistance at the 50-day SMA. A pullback is possible if the bulls break at 50-day SMA.
With a recovery rate which lacks momentum, Bitcoin Cash (BCH) has had a pullback to the 20-day EMA. No doubt, the buying has been weak and likely to face stiff resistance at $600 USD. With SMA and EMA sloping downwards, it is a clear indication that sellers are still in charge. Though, BCH is likely to gather momentum the moment it hits 50-day SMA. When this happens, the rally can go farther to $900 USD.
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