There are a lot of reasons why the cryptocurrencies have been falling in the last few days. Some of the reason are hacking, increase in the regulations and also the crackdown which has been done by the various governments. Additionally, in December last year, many people were involved in buying the cryptocurrencies in huge amounts. They had the fear that they might end up missing out on the huge profits and the cryptocurrency rally. However, on the announcement by various newsmakers about the negativities in the market, various investors panic and fear to lose their holdings. Therefore, they dump and sell their investments while in the fear to lose capital.
Some of the investors have seen the fall in prices as an opportunity to buy in bulk while others think that the cryptocurrencies have come to an end. Therefore, we have considered this fall as a buying opportunity. However, all the cryptocurrencies might not improve equally from the current levels. For instance, when analyzing Bitcoin and Ethereum, there are significant differences in the price changes for the past three months. Therefore, we can’t make a conclusion that the rise in one cryptocurrency might cause the other to rise also.
I this light, markets will distinguish among the different cryptocurrencies and choose what to invest in. therefore, we should have a look at those cryptocurrencies which have fallen less and have a high bouncing power. Therefore, this is an exploration of the cryptocurrencies which might have high chances of a pullback.
Bitcoin has been experiencing a very sharp grip downwards. The cryptocurrency has already declined about 60% from its highest price index. As of Feb 5, Bitcoin stands at $8,079 level, and this shows that it’s still stuck at the $8,000 level.
According to the statistics collected in 2017, the cryptocurrencies fell on various occasions, and this was proved to be the best opportunity to buy the cryptocurrencies. According to the current statistics, there is a likelihood that this is the perfect time to start purchasing Bitcoin.
Therefore, we are in the anticipation that Bitcoin will have a resistance zone of around $10,500 and later $11,200. Therefore, with this rise, the traders can enjoy some of the profits at the $10,500 levels.
However, this position might represent the lowest point in this cryptocurrency. If it does not, however, sustain the $8,000 level, it might break the $6,000 levels. Therefore, traders should wait for some days before they can buy.
A few days ago, Ethereum dropped below the $1,000 level, and the market was filled with panic and negative reactions.
Currently, it trades at $828, and this means that it has risen from the support level of $768 in the last 2 days. However, Ethereum pullback might have a resistance in the $1,025 level. On the current price, the risk is high, and thus we do not make any recommendations for buying of the cryptocurrencies. However, in case the fall moves from the $820 levels to the $770 level, we suggest a selling level of $700.
Bitcoin cash has really been involved in a downtrend in the last few days. According to its peak, it has fallen with about 70%.
According to the forecast done previously, we made a forecast that when the cryptocurrency breaks the $1,364 level, it would further fall to $1,150 and this has been happening. The cryptocurrency had fallen below the $1,000 level bust has since regained to $1,089.
Therefore, according to the current nature of the market, we recommend long positions of $1,000 and $1,150 in the next few days. However, with harsh market conditions, the cryptocurrency can fall below the $1,000 levels.
Therefore, traders should wait and monitor the cryptocurrency for some time.
Ripple has also not been left in the current fall. With today’s level of $0.80, this is a representation of above 70% basing the statistics on its peak.
The current momentum is very strong in such a way that ripple broke the critical support level of $0.87. Therefore, a fall below the $0.61 level might subject the cryptocurrency to the $0.24 levels. On the other hand, rise above the $0.90 levels is likely.
However, we suggest that no trade should happen before the traders have monitored the cryptocurrency for a few days.
IOTA has been involved in a fall from the $2.42 levels to the $1.66 levels in the last few days. This is a representation of more than 30% from its peak level.
With the current market conditions, IOTA might experience resistance in the $1.90 levels in the next few days. However, with harsh conditions, it might further fall to the $1.30 levels.
After Litecoin fell below the support level of $175 and ten below $140, it then fell to the lowest point of $107. However, it has regained its momentum and now trades at $145.
However, purchases of the cryptocurrency might improve it back to the $175 levels. If this does not happen, a fall below $140 can be realized. That is why we don’t recommend any trade in this cryptocurrency.
NEM has been involved in a decline which stands for above 60% drop from the peak level. Currently, it is at $0.53.
Since it has since moved from a critical position of $0.45, it might be involved in a rise from this position in the coming few days. However, with harsh market conditions, we might see a support level of $0.3672 reached.
Cardano has been involved in a sharp fall in prices in the last few days. Its fall from the $0.00005 level to the $0.000040 level, it further fell to $0.000032 and now trades at $0.000036.
With the current market conditions, we expect Cardano to stick to the $0.000030 to $0.000040 levels for some time. Therefore, traders can observe it for the next few days before making any investments.