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Buying or Shorting Crypto Currencies? BTC, ETH & LTC

December 11, 2020 19:04
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Curious about the current support and resistance levels for the most common crypto currencies? Here, Stanko handle technical analysis and important news connected with Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). The price of Bitcoin and other cryptos has made a very big jump in a small-time period, and it is important to say that this situation also supports Ethereum and Litecoin.

A recent price surge: But for how long?

The price of most public cryptocurrencies has surged in a relatively short period, and some market observers have expressed concerns that the asset class may have entered a speculative bubble. Technically looking, Bitcoin is the main driver of the cryptocurrency market, and when the price of Bitcoin drops that have a negative influence on all other cryptocurrencies. It is very hard to measure the real fundamental value of this cryptocurrency and predict where Bitcoin's price will go in the long-term, but according to some analysts, Bitcoin could reach a new all-time high in the upcoming months. Ethereum and Litecoin could also reach a new all-time high in the upcoming period, and in my opinion, there's a very good reason to pay attention to these two cryptos rather than Bitcoin. The positive trend of these three cryptocurrencies remains intact, but there will certainly be lots of opportunities for shorting these cryptocurrencies despite this. The last few days we've seen a significant drop for all of the main crypto currencies, so lets get into details and see all the most important support and resistance levels. In case you already know what you are looking to trade, try out Kriptomat – a great exchange place to buy crypto.

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Technical analysis of Bitcoin (BTC)

The price of Bitcoin currently stands around $19 143 and at this value, the total market cap of Bitcoin is around $355 billion. It is important to mention that Bitcoin has the most volume on the cryptocurrency market and the Bitcoin trading volume indicates how many Bitcoins are being bought and sold on specific exchanges.

On this chart (the period from February 2016), I marked current support and resistance levels to help traders understand where the price could move. The more often price tests a level of resistance or support without breaking it, the stronger the resistance or support area is. When the price passes through the resistance, that resistance could potentially become support. Bitcoin remains in the “bullish phase, “and if the price advances above $19 500 the next resistance could be located around $20 000. The current support level is $18 000 and if the price breaks this level, it would be a “SELL” signal and we have the open way to $17 500 and $17 000. If the price drops below $16 000 which represents a very strong support, the next target could be located around $12 000. The best place to buy or trade bitcoin in the US is called eToro. For Europeans, we rather recommend Capital for Bitcoin trading.

Technical analysis of Ethereum (ETH)

Ethereum uses Ether (ETH) as its token and it is important to say that ETH is the second-largest cryptocurrency in terms of market cap behind Bitcoin. Beyond a tradeable cryptocurrency, Ethereum is a decentralized platform that runs smart contracts. Application developers also use Ether to pay for transaction fees and services on the Ethereum network. The price of this cryptocurrency is correlated with Bitcoin's price, and when the price of Bitcoin drops, that usually has a negative influence on the price of Ethereum.

The price of this crypto currently stands around $595 and at this value, the total market cap of Ethereum is around $67 billion. On this chart (the period from April 2020), I marked major support and resistance levels to help traders understand where the price could move. Ethereum remains in the “bullish phase “and if the price advances $650, the next resistance could be located around $700. The current support level is $500, and if the price breaks this level it would be a “SELL” signal and we have the open way to $450 and $400. If the price drops below $400, which represents very strong support, the next target could be located around $300. Europeans can trade Ethereum – both shorting and buying – by either Go Capital or the Scandinavian platform Skilling.

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Technical analysis of Litecoin (LTC)

Litecoin is a very popular cryptocurrency to monitor since it appears to hold a number of advantages over Bitcoin. Litecoin provides faster transaction confirmations (2.5 minutes on average) and Litecoin's transaction fees are, on average, considerably lower than that of Bitcoin.

On this chart (the period from December 2019), I marked major support and resistance levels to help traders understand where the price could move. The more often price tests a level of resistance or support without breaking it, the stronger the resistance or support area is. When the price passes through the resistance, that resistance could potentially become support. Litecoin remains in the “bullish phase “and if the price advances again above $90 the next resistance could be located around $100. The current support level is $70 and if the price breaks this level it would be a “SELL” signal and we have the open way to $60. If the price drops below $60 which represents very strong support, the next target could be located around $50. You can get started with Litecoin trading easily with Capital.

Conclusion of crypto currency valuation

The price of Bitcoin, Ethereum, and Litecoin will probably strengthen even more in the upcoming weeks, but there will certainly be lots of opportunities for shorting these cryptocurrencies despite this. The price of Ethereum and Litecoin is correlated with the price of Bitcoin, and when the price of Bitcoin drops, that usually has a negative influence on the price of Ethereum and Litecoin.