Cryptocurrencies have been characterized as a section of the evolving technology which is in its nascent stage. Therefore, cryptocurrencies are more volatile than the other forms of matured assets. From the time cryptocurrencies were introduced, the major investors were technology enthusiasts who started with Bitcoin. Therefore, they made investments and believed in the cryptocurrencies due to the fact that they saw a good future in them. After the investors reaped big in 2017, many of the other people who were involved in monitoring want to be part and parcel of the party.
This has changed the performance of the cryptocurrencies. For the last 90 days, the correlation between cryptocurrencies and S&P 500 has improved by 33%. This is higher than the previous highest reading of 19%.
However, in 2018, there has been a sudden fall in prices of cryptocurrencies, this has been triggered by various activities within the market which are banning and regulation in different countries. These activities saw investor’s record losses. However, with the acceptance of Cryptocurrencies n the United States, things have taken a drastic turn and an improvement has even noticed over the last few days.
Since 2018 has been negative in cryptocurrencies and also the stock market, let’s see the reactions of the top coins in the market.
Bitcoin is regarded as the most volatile asset in the universe. Bitcoin was involved in lawing its way back from the four-month low which saw it trade at $5,922 on Tuesday by rebounding around 53% to the $9,069 level. The Dow Jones Industrial average and also the S&P 500 index was involved in a fall of more than 5% this week which wiped out this year’s gains. The emerging market currencies and also stocks plunged while US treasures rose.
Bitcoin had been falling this year partly over concerns that authorities were preparing a crackdown. To the delight of traders, neither regulator said they wanted senators to pass sweeping new laws that rein in digital coins. Bitcoin supporters have however bee very quick to extol the virtues of the Cryptocurrency and describe it as an asset which is uncorrelated to the market.
Since Bitcoin price dropped below the $6,000 level, it has been steadily climbing. This has causes volatility measures on the digital assets to stabilize while the selloff in the S7P 500 made it improve in the Chicago Board Options Exchange Volatility Index.
On the other hand, the more than 70% drop in the prices of Bitcoin from the highest price of $20,000 has prompted the major financial institutions to declare that the crypto bubble has popped.
The price of Bitcoin is still expected to trade above the $9,000 levels for the next few weeks. However, the investors to made investments last week during the lowest prices expect higher returns in a few months.
Ethereum was involved in a plunge from the $1,265 levels to the $565.54 levels in just 9 days. This was according to the February 9 statistics. However, it has since moved to the $800 levels.
Therefore, we are in the expectation for the Cryptocurrency pullback to experience the 20 day EMA resistance level. Therefore, we expect the Cryptocurrency to always stay above the Feb 6 lows. Investors can be involved in the purchase upon the short term bottom experienced.
However, as for the current situation, the trade should be avoided.
Bitcoin cash has been holding on to its price since the Feb 6 drop. On Feb 9, it made a strong move upwards.
The Cryptocurrency is expected to attain a positive index and also sustain itself above the downtrend line. We are in the expectation that it will form a bullish setup and reach the $2,072 levels. With the current price at $1,262, the target object is possible but might take some time.
As for now, we don’t find any tradable BCH/USD pair and we don’t recommend any trade on it.
Ripple has been the cause of heartburn among the investors in the last couple of days. At the current price today, this Cryptocurrency is still suffering around 67% drop from its peak. This is why for the last few days, it has been facing a lot of difficulties among the buyers.
However, we are in the expectation that if ripple breaks the 20 days EMA and also the downtrend line, it might attract various investors. This might help it move above the $1.74 levels. Therefore, investors should wait until the Cryptocurrency breaks above the 20 days EMA before they can be involved in the purchase of the Cryptocurrency.
IOTA has been in a continuous improvement from the Feb 6 fall. It currently trades at $1.82. In the previous analysis, we encouraged investors to make investments when it reaches the $1.90 level.
We are in the expectation that the Cryptocurrency will reach the $1.90 levels in a few days and this might trigger buying.
Litecoin has been close to the 20 da EMA since it has been acting very strong in the previous occasions even when the other cryptocurrencies fell with a huge margin.
From the previous analysis, we stated the resistance level of $175. Once it reached this level, this might be the selling price. Additionally, once it breaks the forecasted level of $175, it can be further be involved in an upward rise to the $243 levels and later $300 levels.
Traders can be involved in the purchase of the Cryptocurrency once it attains the $175 levels.
From the highest drop in NEM on Feb 6 where it traded at $0.3647, it has been experiencing gradual improvement from time to time.
In the previous forecast, we mentioned that NEM might face a resistance level of $0.5675. This has been the case since it trades at $0.556. However, our projected target level is the $0.6100 level. Therefore we advise the investors to make investments once it goes above the $0.5675 resistance levels.
In the last few days, Cardano has not been finding any buyers in the market. This is since it has continued to struggle in the $0.000040 levels for quite some time from Feb 2.
At the current price, it represents a fall from the Feb 7th statistics. Therefore, we anticipate that the Cryptocurrency might fall to the $0.000024 levels which might trigger buying by the investors.
Therefore investors should monitor the trend in a few days before they can be involved in the trade.