The number of hedge funds trading exclusively digital currencies rose to 120, with approximately 2 , $ 3 Billion Assets under Management, According to the Autonomous Next Financial Research Firm
Although this sounds like a lot, it's worthless compared to the US $ 3.15 managed by the Hedge fund industry in the third quarter.
Cryptocurrencies has only attracted a small number of institutional investors because most remain skeptical. The latest criticism comes from legendary investor Warren Buffet, who said that Bitcoin is in the bubble territory.
Well, a correction after such a rally is certainly possible. Therefore, we always recommend a stop loss to our readers. Even if the digital currencies corrected themselves strongly, our losses will be limited and our capital will be preserved. We can reinvest again at lower levels
BTC / USD
We recommended long positions in Bitcoin in our previous analysis, with a target of $ 6,000. On October 27, digital currency reached a high of $ 5,986, where, hopefully, traders would have reserved partial profits as suggested. Where is Bitcoin headed?
Bitcoin is currently correcting towards the trendline support at $ 5600. Just below this support is the 20-day exponential moving average at $ 5513. We expect to buy to emerge at these levels, however, we are not sure whether this level will hold this time
Our stops at $ 5650 have been affected We would like to sit and wait, because if the support area of $ 5513 to $ 5600 breaks, the digital currency will slide to levels of $ 4975.
On the other hand, if the support area is maintained, the Bitcoin will likely remain between $ 5600 and $ 6000. However, the next purchase on virtual currency will only be triggered It reaches new heights and crosses the resistance line of the ascending channel
Currently, we can not find any configuration of purchase, therefore, we are not recommending any new trade on Bitcoin.
ETH / USD
We have no position or recommendation on Ethereum. Bulls and bears pause after the extremely volatile day of October 22nd.
Ethereum has a series of resistances ranging from $ 300 to $ 315, so we recommend a long position only on a breakout, and close above $ 315 with a tight stop The first target is $ 353
the decline, it is supported by the trend line at $ 280, below which it should fall to $ 272 and then to $ 252.
At current levels we do not find any configuration of purchase on Ethereum, so we do not suggest trading on it.
BCH / USD
We have been watching some Bitcoin Cash purchases but we do not recommend trading because the risk / return ratio was not favorable, do we see a trade on it now?
Cryptocurrency is coming back now from the upper end of the range to $ 400. The simple 50-day moving average is also $ 398. Therefore, we expect strong resistance at levels of 400.
However, if the digital currency comes out of this resistance, it has a goal of $ 518. an escape and close above $ 400. We will limit our risks by maintaining a stop loss of $ 350. We do not want to keep trading if it falls back into the lineup.
However, if Bitcoin Cash fails to break and close above $ 400, it will probably remain for a few days
XRP / USD
Buyers and sellers seem to have deserted the digital currency over the last three days, which has reduced volatility. However, this period of low volatility should not last long. We should soon see an expansion of volatility.
Si Ripple is missing moving averages, it should attempt a pullback to at least $ 0.23955, the 50% Fibonacci retracement of the $ 0.29699 drop to $ 0.188211 .This level, then a rally at $ 0.25311 and $ 0.27241 is also possible
Therefore, we recommend a long position at $ 0.22 with a stop loss of $ 0.19650 .As this is a risky trade, we suggest using only 30%
However, if the cryptocurrency fails to go up, it can go down to levels of $ 1.8211.
LTC / USD
Litecoin was not As a result, our purchase levels were not triggered.
The 50-day SMA is located at $ 55.59, while the EMA 20 days is $ 56.57. Just above moving averages is the upper limit of the range of $ 57,729. If the digital currency breaks with all these resistances, there is a good chance that this will trigger a new uptrend
Therefore, we retain our purchase recommendation provided in our previous analysis. Please buy on an escape and close above $ 57.7. The stop loss is $ 51, while the target goal is $ 71
If Litecoin fails to clear resistance from overhead, it will return to levels of 52 $.