With most governments and regulators keeping an eye on cryptocurrency markets, we do not expect a vertical rally.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The market data is provided by the crises.
The increased volume of trading during moments of crisis in these nations shows that when the regulators keeping an eye on cryptocurrency markets, we do not expect a vertical rally. Prices are likely to rise gradually, which is good for the long-term growth of virtual currencies.
Bitcoin has continued its journey northwards, closing in on the 61.8 percent Fibonacci retracement level which might act as resistance.
Both moving averages are trending up, which shows that the bulls are in command. A bullish crossover will provide further strength to the current rally. The virtual currency will lose momentum if it breaks below the trendline.
The 20-day EMA will act as a strong support for any declines. The long positions but raise the stops to breakeven. The virtual currency will turn negative if it sinks below the $6,955.79 level.
Ethereum has been trading inside the symmetrical triangle since August 11. It will start the next move after breaking out or breaking down from the triangle.
On the upside, the Ripple has been consolidating between $0.31–$0.37390 since August 18. The 20-day EMA has turned flat while the 50-day SMA is trending down, which shows that selling has subsided.
The Bitcoin Cash rallied sharply on September 1 and 2 and broke out of the downtrend.
The EOS triggered our buy recommendation when it closed (UTC time frame) above the 50-day SMA on September 1. However, it has not picked up momentum as we had expected.
EOS has been consolidating close to the 50-day SMA for the past three days. The 20-day EMA has turned up while the 50-day SMA has gone flat, showing an advantage for bulls in the short-term.
On a breakout above $7.25, the Stellar has been lacklustre as it remains range bound between $0.184 and $0.24987525. Both moving averages have flattened out and the RSI is also close to the 50 level, which confirms a state of equilibrium.
A breakout of the range has a pattern target of $0.3157505, but we anticipate a rally to $0.35. The longer the buy call initiated on August 27.
Litecoin is showing signs of a turnaround, and is currently trying to break out of the downtrend line and the 50-day SMA. If successful, it can quickly move up to $74. The 20-day EMA has turned up while the 50-day SMA is flattening out. This shows that the bulls have the upper hand in the near-term.
If the Cardano has been consolidating near the upper end of the range for the past six days. Though it has failed to break out of the range, it has not given up much ground, showing that traders are not dumping their positions.
The 20-day EMA has turned flat but the 50-day SMA continues to trend down. If the IOTA has been stuck between the 20-day EMA and the 50-day SMA for the past seven days. The flattening moving averages and the RSI in the positive zone show that selling has subsided. A break out of the downtrend line and the $0.9150 resistance will signal a change in the trend. Therefore, we suggest that traders hold their long positions with the appropriate stop loss.
If the bulls sustain above $0.9150, the Monero fulfilled our buy recommendation on September 1 when it closed above the long-term downtrend line. The positive close was followed up by a further move towards the overhead resistance of $150. Moving averages are on the verge of a bullish crossover, which confirms that the trend is changing.
As the RSI has entered into overbought territory, the virtual currency might consolidate close to the $150 level for a few days before breaking out.
The XMR/USD pair will turn negative if bulls fail to hold the next dip above the $109.22 level. Therefore, we suggest holding the current long position with a stop loss of $90. Traders can trail their stops higher in a couple of days.