Altcoin Analysis: BTC, ETH, XRP, EOS, LTC — Cryptocurrency Review
Participants in the cryptocurrency market are getting used to new levels, and although volatility is reduced, as long as it still remains at high values. Trading volumes in most cryptocurrencies fell. The market capitalization rate added 2.3% from Wednesday and is now at $175 billion.
Now, when interest in cryptocurrency has sharply increased again, when a large number of participants joined the growth, stayed long and waiting for another growth wave, the market needs a pause, to digest what happened. Profitable trades often become profitable, because buying decisions were made long before the revaluation took place, so from the point of view of trading practices, it is not always rational to increase their trading activity in the circumstances that have already happened.
The price of BTC at the next update of the maximum did not reach the level of $5300, after which it was corrected. Volumes at the same time significantly decreased. Current movements occur at heightened volatility, which is the natural behavior of most market instruments after rapid changes in price levels. There is no reason to say that the correction is over and soon we will see a new wave of growth.
On the contrary, we believe that participants will need more time to get used to new levels, so now we are watching the dynamics from the outside. In the case of the emergence of a new local uptrend, it is possible that points with an acceptable profit/risk ratio will appear on the chart, and then it will be possible to look for a moment to open a new long position.
In the ETH, the price, after updating the maximum, rolled back down by 12% and is currently making recovery attempts against the background of high volatility. In order to make any predictions, first of all, you need to wait for the volatility to decrease, after which, depending on the patterns, it will be possible to evaluate the technical picture and, possibly, make new rates. In the current situation, we estimate the likelihood of movement both up and down, approximately 50/50, so we stand aside until the moment when the passions in the market finally subside and the emotions of the participants return to a calm state.
XRP is in the area of highs, however, looking at the chart, it should be noted that on the background of high volatility, speculators’ emotions are going wild, which makes it impossible to open a new long position with little risk. In the current situation, the decision to stand aside so as not to cut all the profits earned will probably be correct. It is important to take a pause and look at everything that happens with a sober mind. As a rule, the statistics of successful trading indicates that all quality transactions are made until the moment when excessive emotions are present on the market. It is possible that the formation of a new local trend, where there will be points for opening a position with little risk, will give the opportunity for the emergence of new trading ideas.
In EOS, after updating the highs, the price went upwards to about 8% and then corrected. As in the other instruments we are considering, we consider it important, first of all, to wait for the volatility indicators to decline to normal levels before making any trading decisions. In this case, it is difficult to predict the depth and duration of the correction with a high degree of accuracy; moreover, the current formations do not imply a low risk, and therefore, even in the case of long opening, its size will be quite small. In this connection, we are waiting for the formation of a new local trend and reduction of volatility, after which we will look for new entry points.
LTC is the only coin in which we considered the possibility of re-opening a position by a small volume in the case of updating highs. Expectations were met, and all positions were covered by a sliding foot. Now we consider it important for some time to observe the current dynamics from the outside in order to feel the pulse of the market and, by the nature of the transactions concluded by other participants, to assess the current, and possibly future, moods.
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Author: Marko Vidrih
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