In a recent “Ask Me Anything” on Reddit, billionaire Ray Dalio warned investors that the current astronomical pace of printing money is unlikely to stop in the near future, and that keeping money rich can lead to losses. Dalio said that bitcoin (BTC) “could serve as a diversification tool for gold and another stock of asset values.”
A new report from CoinShares shows that the transition from gold to cryptocurrencies may have already begun. The report highlights that the outflow of gold investment products in the same period amounted to 9.2 billion dollars and cryptocurrency products – 1.4 billion dollars. Interestingly, in addition to Bitcoin, Ethereum funds also attract investments.
As organizations increase investment in cryptocurrency, Mike Novogratz, founder of Galaxy Digital and CEO of CNN, told CNN that people should invest about 5% of their net worth in bitcoin and some in ether (ETH). Novogratz did not rule out a 30-40% retracement, but it confirmed that Bitcoin would not fall to zero.
Similarly, Winklevoss’ twin advised participants in the Singapore Fintech Festival to study Bitcoin because they believe Bitcoin will reach $ 500,000 in the future.
While the long-term picture looks optimistic, it may be difficult for retailers to take on HODL in the event of a sharp decline similar to that seen in the last 24 hours.
Let’s break down the charts of the top 10 cryptocurrencies to determine the critical levels to watch out for.
Bitcoin / US dollars
Bitcoin (BTC) failed to rise above the resistance of $ 19,500 on 6-7. December. This could attract profits for traders in the short term, and the downtrend also pushed the price below the 20-day exponential moving average of $ 18,314.
However, the fall did not cause panic among traders, and the bulls continued to buy the BTC / USD pair on the downturns. This is a positive sign, as it shows that the feeling is still bullish. Now the bulls will try to push the price towards the $ 19,500 resistance level.
If the price does not stay above the 20-day moving average or rises above the resistance of $ 19,500, this is probably another round of sales. If the price of the bears falls below $ 17,650, the pair could fall to the 50-day simple moving average of $ 16,314.
The flat 20-day EMA and Relative Strength Index (RSI) just above the midpoint indicate several days of range movement.
A break below $ 16,191.02 will indicate that the bears will gain the upper hand, while a break above $ 19,500 will tip the advantage in favor of the bulls. Until then, the pair may remain unstable between the two levels.
ETH / USD
Ether broke below the rising triangle line and the 20-day moving average ($ 559) on December 8th. This move negates the bullish sentiment, but on the positive side, the bulls bought in the fall and pushed the price back above the 20-day moving average.
If the bulls manage to maintain demand at a higher level, the ETH / USD pair may rise again to the $ 622,807 resistance zone to $ 635,456.
On the contrary, the trend line can now act as resistance. If the price falls below this resistance, the Bears will try to push the pair below $ 530,487. If successful, the pair could drop to $ 488,134.
Although these are both bullish and bearish opportunities, the constant 20-day moving average and RSI above 54 do not indicate an advantage for bulls or bears. Thus, the probability of movement within the area for several days is high.
XRP / US Dollar
Although bulls pushed the XRP over the downward line on December 6, demand fell at higher levels. This pushed the price back below the downward line on December 8 and the 20-day EMA ($ 0.543) today.
The bulls purchased today fell to the support level of $ 0.50 and are currently trying to keep the price above the 20-day moving average. If successful, the XRP / USD pair may be within reach for several days.
The fixed exponential moving average of 20 days and the RSI just above the midpoint indicate a balance between supply and demand. A break of over $ 0.6794 changes the advantage for the bulls, while a break below $ 0.50 indicates that the bears have an advantage.
LTC / USD
December 7 The doji candlestick pattern showed bulls and bears swinging around the next move. This uncertainty was reversed when Litecoin (LTC) switched and crashed below its 20-day moving average ($ 79) on December 8.
LTC / USD is down to $ 71.9801 today, but the long tail of the light shows strong purchases at lower levels. A stable 20-day EMA and RSI near the midpoint indicate equilibrium.