As our readers might have seen over the past few months, cryptocurrencies should be traded cautiously. If one makes the right decision and trades using the chart patterns, trades can be profitable with a calculated risk.
BTC/USD
In our previous analysis, we had forecast Bitcoin to reach the resistance line of the descending channel at $11,500, after breaking out of the 50-day SMA. Today, the cryptocurrency reached an intraday high of $11,147.99.
We believe that the zone between $11,400 and $12,200 will act as stiff resistance. Therefore, the aggressive traders should book profits on 50 percent of their positions at the current levels and hold the rest with a trailing stop loss.
A breakout of the $12,200 levels will complete an inverted head and shoulders pattern, which can propel the BTC/USD pair back towards the $18,000 levels.
The bears will gain strength once the digital currency breaks down of $9,400 levels. Until then, it is bulls advantage.
ETH/USD
We had expected Ethereum to break out of the 20-day EMA and rally towards the resistance line of the descending channel. However, for the past two days, the bulls have failed to break out and settle at the moving average.
If the ETH/USD pair turns down from the 20-day EMA and breaks below the trendline of the ascending triangle formation, it will be a bearish development. On the downside, $770 to $780 is likely to act as strong support.
Therefore, traders can raise their stops to breakeven on half position and keep the stops at $780 on the other half position. Let’s reduce our risk.
BCH/USD
We still don’t find signs of a recovery for Bitcoin Cash. For the past six days, the price has been stuck in a tight range of $1,150 to $1,355. Both the 20-day EMA and the 50-day SMA are turning down, which shows that the bears have an upper hand.
Read full Text : https://cointelegraph.com/news/bitcoin-ethereum-bitcoin-cash-ripple-stellar-litecoin-cardano-neo-eos-price-analysis-feb-28