The past few days have seen a series of flip-flops on news. First was the news of the Korean government banning cryptocurrency trading that led to a sharp fall in prices. Then came the rebuttal that there was going to be no ban in the near future.
The latest news from South Korea is that they have still not given up on the plan to shutdown cryptocurrency exchanges. The markets reacted with a selloff in all virtual currencies.
The second news was that Ripple had partnered with MoneyGram for money transfers.
This shows that the traders should not impulsively buy or sell on any news. It’s always better to wait for a trend to form and then buy into it. Is the current fall a buying opportunity or is there more to go? Let’s find out.
For the past four days, the bulls have been attempting to hold the critical support of $12,600 to $12,900 in Bitcoin and push prices back into the symmetrical triangle.
In our previous two analysis, we said that Ethereum will find it difficult to breakout of the overhead resistance zone of $1382 and $1434 and that is what happened. The cryptocurrency returned from a high of $1424.3 on Jan. 13.
After trading inside a range of $2072 to $2950 for the past few days, Bitcoin Cash broke down below support.
We had forecast a possibility of a fall to $1.40 in Ripple on Jan.6. Today, the cryptocurrency touched a low of $1.17.
There is a tussle between the bulls and the bears at the critical support of $3.03 in IOTA. While the bears have broken below the supports, the bulls are attempting a pullback.
Today, Litecoin broke down below the symmetrical triangle pattern and also the 50-day SMA, which is a negative development.
We had suggested a long position in NEM in our previous analysis. The pullback on Jan. 13 did not reach our target levels and our stop loss was triggered today, when the bears broke below the uptrend line.
We are carrying long positions in Cardano from 0.00005733 levels. Though price reached our first target of $0.00006616, it could not reach the second target objective of $0.00007221, because it topped out at 0.00006915.