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Weekly Analysis; Bitcoin, Stellar and Litecoin

Most investors and traders are accumulating Bitcoin, which may result that Bitcoin price reaches $12,000. The statistics from Skew, show Bitcoin’s spot volume on LMAX Digital, which is an institutional cryptocurrency exchange, has overtaken other retail exchanges. Consequently, it signals that institutional investors are accumulating Bitcoin and expect the price will grow. In this article, we are going to have a weekly analysis over 3 main cryptocurrencies.

 

 

We have a growth in institutional investors participation in derivatives market. The statistics from Arcane Research shows that the majority of investors are taking delivery of Bitcoin from the Bakkt Bitcoin exchange.

The other important metric, which traders can use is volatility. Bitcoin options data shows that the implied volatility of at the money options decreased significantly to its 16-month low. It shows that traders do not expect price reduction in the near future. As a result, they are not interested to pay more in order to hedge their position.

As we mentioned, the data shows that institutional investors are waiting for a price growth. On the other hand, the retail traders are watching the price to put large bets whenever the price started to move upward.

Here we are going to study the charts for 3 main cryptocurrencies, which may start a trending move by the next coming week. Stay with our latest weekly analysis of cryptocurrency market.

BTC/USD

For the past few days, Bitcoin has been holding above the 20-day exponential moving average, which is equivalent to $11,137. It shows, the buyers bought the dip to the $11,165 support on Oct. 19. In fact, it suggests accumulation at lower levels.

BTC/USD chart
BTC/USD daily chart

Resistance at $11,719 could be hit by BTC if the price can be pushed by bulls up to the downtrend line. If the price could break out this level, it may continue to grow to its first target, which is $12,000 and the next one which is $12,460.

The relative strength index is also above 61. In addition, the both long-term and short-term moving averages are rising up. Consequently, it shows that the bulls are in control of the market.

But, if the pairs turn down from the down trend line and then drop below the 20-day EMA, then the above mentioned positive view will be invalidated. In this case, the price drops down and will continue to decrease until the next support at $10,500.

BTC/USD 4 hour
BTC/USD 4-hour chart

If we take a look at 4-hour chart, it formed a bearish descending triangle pattern. This pattern will complete a breakdown and close below $11,165. The target for this bearish pattern will be at $10,611.

It’s notable that if bulls can push the price up above the downtrend line, then the bearish pattern will be invalidated. If such those scenario happens, it will attract short covering by bears, which result in a rally to $12,000.

However, a gradually upward moving of 20_EMA and the RSI in the positive zone will suggest a slight preference of the bulls.

Weekly analysis; XLM/USD

Stellar dropped below the 200-day simple moving average ($0.077) on Sept. 21. Bears continued to decrease the price to $0.066841. But, bulls start buying xlm and this competition result an ascending channel. In fact, bulls are trying to push price above the overhead resistance at $0.084584.

XLM/USD
XLM/USD daily chart

The buyers may make one more attempt in order to push the price above $0.084584, if the pair stays above the moving average. In case, it happens, the pair could begin a new uptrend, which may rally to $0.10.

In addition, the RSI is in the positive zone and the moving average is gradually up sloping, which show that bulls are in control.

XLM/USD
XLM/USD 4-hour chart

The condition mentioned above suggests that the bulls will try to push the price above the overhead resistance. If they could push the price, then the price will rally to $0.091042.

There is another possibility as well. If the bears pull down the price below the 20-EMA, the price may drop to $0.076546. In addition, if the price break below this level, it may result in a decrease to the support line of the channel.

Weekly analysis; LTC/USD

Litecoin (LTC) is trying to create an inverse head and shoulders pattern. The pattern will be completed and close above $51.50. There is a balance between supply and demand as the RSI is below the midpoint and moving average formed a flat line.

LTC/USD
LTC/USD daily chart

The long tails on the candlestick on Oct. 2 and Oct.16 signals that the bulls are buying at the dips to the trendline. If the bulls succeed to push the price above the moving average, we can expect the LTC/USD pair could rise to $51.50 again.

If the bears could sink the pair below the trendline, then this bullish view mentioned above will be invalidated. As a result, it may keep the pair in the range-bound for a few days.

LTC/USD
LTC/USD 4-hour chart

If we notice to the 4-hour chart, it shows that the bounce of trendline is trying to remain above $47.7845. It signals that buying will stop at higher levels. The RSI is in the negative zone and 20-EMA is falling down.

As a result, the bears may try another time in order to break the trendline support. If they succeed, the pair could drop to $42.

On the other hand, if bulls can hold the price above $47.7845, it is expected that price will rise to $50 and then $51.50.

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