But the technical analysis is predicting growth
Facebook has pledged that its new cryptocurrency will represent a totally new instrument, the like of which has never been seen before. The social network enlisted numerous crypto experts to help it develop its flagship coin, which it claims is free from many of the drawbacks associated with other digital currencies. One of the major advantages of Libra is its alleged absence of vulnerabilities — a problem which has plagued many other coins whose buyers have become a target for hackers. Even the largest crypto exchanges haven’t been completely immune from cyber attacks, with many suffering break-ins and thefts.
Facebook has committed to launching its new cryptocurrency by 2020, but it has since run into resistance from the US authorities, with Congress advising the social networking site to postpone its launch. It has requested that Facebook declare a moratorium on the further development of its digital currency until such time as Congress and the relevant regulatory bodies have had ample time to fully research this topic.
The US authorities decision to derail Facebook’s project has come as a huge disappointment to crypto investors. They thought Libra was a done deal, but now their enthusiasm has all but disappeared. Aside from these concerns, there are also doubts as to whether Facebook’s cryptocurrency will receive regulatory approval in a number of countries, of which Russia is one.
On the back of this news, we are likely to see a decline across the entire crypto market starting next week. This negative growth will affect both big-named and more obscure coins alike.
However, the technical analysis indicators we use on our Libertex trading platform paint a different picture altogether.
They predict a rise for Ethereum, supported by the EMA 21. Meanwhile, the EMA 60 is seen crossing the EMA 200 from the bottom up. Once they have crossed, all the EMAs will then align in order of period length, which will mean the formation of an uptrend.
After leaving the overselling zone, the Stochastic is now ready to re-enter it. We recommend buying once it touches the EMA 21 and be sure to keep your stop loss below the 226.610 minimum.
Ripple is also expected to rise under support from the EMA 21. In fact, this asset’s EMA 21 has already crossed the EMA 200 from the bottom up and the EMA 60 is getting ready to do the same. An uptrend is emerging. A high Stochastic is a sign that a slight correction is on the way.
We recommend buying when it touches the EMA 21 and be sure to keep your stop loss underneath the trend line and below the closest minimum of 0.37540.
An upward trend is forming in Litecoin. We can already see the EMAs lined up in order of period length. The EMA 21 is at the top, with the EMA 60 just below. Then, right at the bottom, we have the EMA 200.
If we look closely, we can trace the price’s previous divergence from the EMA 21. This means we should start buying when it touches the EMA 21, i.e. from the pullback point. As is frequently the case with trends, there’s nowhere closeby for us to set our stop loss. With this in mind, we should place our stop loss below the previous minimum of $98.000 since the price could also ultimately diverge from the EMA 60.
The technical analysis shows Bitcoin moving in an uptrend with all EMAs aligned in order of period length. The EMA is on top, with EMA 60 just below and EMA 200 right at the bottom. This indicates a trend. The EMA 21 is acting as a support and so we suggest you start buying as soon as the price reaches this level (pullback point). A good place to set your stop loss would be the previous minimum ($7443).
The Stochastic is moving out of the overbuying zone, so it is probably best to wait for it to rebound to the EMA 21.
On the basis of all this, we could see a situation emerge in which Bitcoin might once again drop below the $9000 mark. Meanwhile, Ethereum, XRP and Litecoin could also slide to $250, $0.40 and $135 respectively. Longer term, however, we are certain that the crypto market will continue its pattern of growth.