Price Analysis Jan 31: BTC, ETH, XRP, BCH, BSV, LTC, EOS, BNB, ADA, ETC

Morgan Creek Capital CEO Mark Yusko believes that Bitcoin should be a part of every investment portfolio. The performance analysis of the past five years shows that even portfolios that only held 1% of their total investments in Bitcoin managed to outperform their competitors. Bitcoin offers a ten-to-one downside capture, which makes it one of the most asymmetric assets that Yusko has ever seen.

The growing popularity of crypto derivatives indicates institutional players are gradually entering the space. The Chicago Mercantile Exchange group Managing Director and Global Head of Equity Index Alternative Investment Products, Tim McCourt, said: “CME Bitcoin futures have surpassed $100 billion in total notional value traded since their launch in December 2017.”

 Daily cryptocurrency market performance. Source: Coin360

Bank of Japan deputy governor Masayoshi Amamiya said in a seminar that the central bank should be ready to issue a central bank digital currency if the public demand for it increases. This shows that several major economies are exploring the possibility of launching a CBDC. 

As January comes to an end, multiple cryptocurrencies have risen sharply but can the bulls sustain the momentum? Let’s study the charts.

BTC/USD

Bitcoin (BTC) has turned down from the minor resistance at $9,600. However, with the 20-day EMA sloping up and the RSI in positive zone, the advantage is with the bulls. We anticipate the bulls to defend the dip to the 20-day EMA at $8,736, which is just below the 200-day SMA at $8,881.

BTC USD daily chart. Source: Tradingview

If the price rebounds off the 20-day EMA, the bulls will again attempt to clear the overhead resistance at $9,600. If successful, the BTC/USD pair is likely to move up to $10,360.89. 

Contrary to our assumption, if the bears sink the price below the 20-day EMA, the pair will weaken and can plummet to $8,240.67. The pair will turn negative if the price drops below the critical support at $7,856.76. The traders can trail the stops on their long positions to $8,200, which can be tightened further if the price dips below the 20-day EMA. 

ETH/USD

Ether (ETH) surged above the $173.841 to $180 resistance zone on Jan. 30 but the bulls have not been able to build on the strong up move. The price has reversed direction from $186.969. 

ETH USD daily chart. Source: Tradingview

There is a strong support at $173.841, which is just below the 200-day SMA at $175. If this support breaks, we expect the bulls to defend the 20-day EMA at $166. If the price bounces off either of these support levels, the bulls will make another attempt to move up to $197.75.  

Contrary to our assumption, if the bears sink the price below the 20-day EMA, the next support to watch out for is the $157.50 to $150 zone. A break below this zone will be a huge negative. The traders can trail the stops on the long positions to $160.

XRP/USD

The bulls are struggling to sustain XRP above $0.2326. This is a negative sign as it shows a lack of buyers at higher levels. There are several supports between $0.2326 and the neckline of the inverted head and shoulders pattern. We anticipate the bulls to defend this support zone aggressively.

XRP USD daily chart. Source: Tradingview

If the price rebounds off the support zone, the bulls will make another attempt to scale above the resistance at $0.25401. If successful, a move to $0.31503 is possible. 

Contrary to our assumption, if the XRP/USD pair breaks below the neckline, a drop to $0.20041 is possible. As the pair is struggling to move up, we suggest traders reduce their risk by trailing the stops on the long positions to $0.21.

BCH/USD

Bitcoin Cash (BCH) came very close to the overhead resistance at $403.88 on Jan. 30. However, the bulls have not been able to scale above this level and the price has once again turned down from it.

BCH USD daily chart. Source: Tradingview

There is a strong support at $360 but if the bears sink the price below this support, a drop to the 20-day EMA at $335 is likely. We expect the bulls to defend the 20-day EMA aggressively. If the price rebounds off $360 or the 20-day EMA, it will increase the possibility of a breakout of $403.88.

Conversely, if the bears sink the price below the 20-day EMA, a drop to $306.78 is possible. If this support holds, the BCH/USD pair might consolidate for a few days. The pair will turn negative on a break below $296.13. The developing negative divergence on the RSI warrants caution.

BSV/USD

Bitcoin SV (BSV) is currently at the support line of the symmetrical triangle. If the bears sink and sustain the price below the triangle, it will be a huge negative. This pattern has a target objective of $159.52 on the downside.

BSV USD daily chart. Source: Tradingview

However, we anticipate the bulls to attempt to stall the decline at $236. If successful, the BSV/USD pair will continue to consolidate between $337.8 and $236 for a few more days. The pair will turn positive above $337.80.

LTC/USD

Litecoin (LTC) broke above the overhead resistance at $66.1486 on Jan. 30, which completed a cup and handle pattern. This bullish setup has a target objective of $96.439. The 20-day EMA is sloping up and the RSI is in the overbought zone, which suggests that bulls have the upper hand.

LTC USD daily chart. Source: Tradingview

Currently, the bears are attempting to sink the price back below $66.1486. If successful, the price can dip to the 200-day SMA at $61.73 and below it to the 20-day EMA at $57.50. If the price rebounds off the 20-day EMA, the bulls will once again attempt to push the LTC/USD pair above $70.50.

However, if the price breaks below the 20-day EMA, a drop to $50 is possible. If the price sustains below $66.1486, it will invalidate the bullish setup. Therefore, we will wait and watch for a couple of days before suggesting a trade in it.

EOS/USD

EOS broke above the overhead resistance of $4.24 on Jan. 30, which was a huge positive. However, the bulls could not sustain the breakout and the price has again dipped back below $4.24. This suggests profit booking at higher levels. 

EOS USD daily chart. Source: Tradingview

The EOS/USD pair can now dip to the 20-day EMA at $3.68, which is likely to act as a strong support. If the price rebounds off the 20-day EMA, the bulls will once again attempt to propel the pair above $4.24.

However, we spot a developing negative divergence on the RSI, which is a bearish sign. If the bears sink the price below the 20-day EMA, a drop to the 200-day SMA at $3.3 is possible. 

BNB/USD

The bulls managed to push Binance Coin (BNB) above the overhead resistance at $18.50 on Jan. 30 and 31 but they have not been able to hold on to the breakout.  This shows a lack of buyers at higher levels.

BNB USD daily chart. Source: Tradingview

If the price sustains below $18.50, the BNB/USD pair will remain range-bound for a few more days. The pair will turn negative on a break below $16.50.

However, if the price rebounds off the 20-day EMA and breaks out of $18.50, a move to the 200-day SMA at $18.79 and above it to $21.8 is possible. For now, the stops on the long positions can be retained at $15.90.

ADA/USD

The bulls are struggling to scale above the overhead resistance at $0.0560221. This shows a lack of buyers at higher levels. Cardano (ADA) can now dip to the next support at $0.0461161. The 20-day EMA is also placed close to this level, hence, we expect the bulls to defend it aggressively.

ADA USD daily chart. Source: Tradingview

If the price bounces off $0.0461161, the bulls will again attempt to push the price above $0.0560221. If successful, a rally to $0.0652290 is likely.

As the ADA/USD pair has not been able to break above $0.0560221, partial profits can be booked at the current levels, if not done already, as suggested in our previous analysis. The stops on the remaining long positions can be kept at breakeven.

ETC/USD

Ethereum Classic (ETC) has turned down from $12.87278. The altcoin can now retest the breakout level of $10, as suggested in our previous analysis. If the price bounces off $10, it might offer a low-risk buying opportunity.

ETC USD daily chart. Source: Tradingview

However, if the retest of $10 fails to hold, the pullback can extend to the 20-day EMA at $9.15. We expect the bulls to defend the 20-day EMA aggressively. A bounce off this level or from $10 will increase the possibility of a move to $14.

Conversely, if the bears sink the price below the 20-day EMA, a drop to $7.7853 is possible. The developing negative divergence on the RSI is a bearish sign. Hence, traders should wait for the uptrend to resume before initiating long positions once again.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.