Technical analysis on cryptocurrencies for 29.11.2017

BTCUSD

Bitcoin overcame the psychological resistance of $10,000 without the slightest hesitation, coming close to the $10,500 level. In just over two weeks, the world's most popular cryptocurrency rose by 61%, increasing in value 10 times since January 2017.

According to AMarkets analysts, the bitcoin rate continues to be supported by feverish demand from investors in Japan and South Korea. The growth of the asset may also be linked to expectations that in 2018 the largest derivatives exchange in the United States, CME, plans to launch trading in bitcoin futures. If global regulators remain loyal to bitcoin, large investment funds, which were previously deprived of the opportunity to work with digital currency in an unregulated space, will join purchases of cryptocurrencies. Considering that the derivatives market exceeds $630 trillion, even a drop from this sea can trigger even greater growth in bitcoin. Against the backdrop of such a rally, we suggest leaving technical analysis aside for a while. The next target is $11,000. We place the stop below the support at $10 thousand.

XRPUSD

According to AMarkets analysts, the recovery dynamics also still remain characteristic of Ripple. High purchase volumes helped the coin break above the upper boundary of the uptrend and approach the coveted target at $0.280. However, the combination of resistance at $0.280 and the weekly R3 level has so far proven too tough for buyers, which is what caused the local correction during Wednesday's Asian session. At the current stage, the $0.25-$0.26 area is being tested from above. There are no signals for a downward reversal, but we may see a return to the lower boundary of the channel and further movement within it toward the targets of $0.280-$0.298. Given the above, we recommend accumulating additional longs as the price returns to the $0.25 area. The maximum target is $0.3.

BCHUSD

Bearish dynamics in Bitcoin Cash persist; despite the narrowing trading range, the bulls still cannot seize the initiative. The loss of the weekly Pivot ($1539) and the 50% Fibonacci level threatens to accelerate the downward dynamics of the BCHUSD rate toward support S1 ($1300). A rebound upward is possible on MACD; however, given the minimal impact of the growth in purchase volumes (2.5 times) on the BCHUSD rate, we suggest holding off on resuming longs, at least until support S1 ($1300) is tested, just above which EMA200 is located. Given the above, for now we act with short orders.

Material provided by the analytical department of AMarkets