The Barclay Cryptocurrency Traders Index monitors the performance of the 19 funds that trade in virtual currencies. He has been beaten this year and to date is down 43.1 percent this year.
However, funds that are market makers and that trade in arbitrage strategies are having a field day, as some have gained 30 percent in the first quarter.
This shows that, regardless of the condition of the market, traders can always develop a strategy to take advantage of it.
The miners do not have that luck. According to Morgan Stanley, Bitcoin mining will remain unprofitable if prices remain below $ 8,600.
The big problem is that nobody knows how to evaluate the main cryptocurrencies. The targets range from $ 100 to $ 100,000 and more, but when prices do not fall even during bad news, it's usually a sign that the fund is around the corner. We believe that most digital currencies have bottomed out, at least in the short term.
BTC/USD
The Bitcoin has finally broken the 50-day SMA after having remained in a fixed range for seven days. Although this is a bullish signal, we still do not see a strong purchase conviction, since the movement lacks momentum. This shows that market participants are cautious about this rebound.
The next goal, pointing upwards, is $ 9,400, where we suggest reserving partial earnings. Once this level is crossed, it is possible to advance to $ 10,000.
If prices do not manage to stay above the 50-day SMA, it will be a bearish sign and prices may fall to the first support level of $ 7,900. Therefore, we suggest that traders should maintain the limits of the BTC / USD pair at the equilibrium point
ETH/USD
Ethereum convincingly surpassed the 50-day SMA on April 19, which is a bullish signal. It has become positive and should continue the race towards the $ 730 levels.
Although the 50-day SMA continues to fall, the 20-day EMA has gone up. A bullish trajectory will provide greater strength to the ETH / USD pair.
Although we are optimistic, we have not suggested any trade in Ethereum. We will wait to enter or consolidate to enter new long positions.
BCH / USD
In our previous analysis, we had noticed that Bitcoin Cash does not face resistance in the 50-day SMA and that is what happened. The price buzzed the moving average on April 19 and we reached our first goal of $ 1,114.
Traders can reserve partial benefits at current levels and maintain a trailing stop at the remaining position. If the bullish sentiment continues, the BCH / USD pair may rebound to $ 1,300 and then to $ 1,600.
However, we should warn traders that the cryptocurrency has a history of vertical drops, so it is best to protect paper profits with a narrow loss limit.
We must never allow a profitable position to become a loss.
LTC / USD
After remaining in a range set for a few days, Litecoin has found purchase support. He is currently trying to break the critical overload resistance from the down trend line and the 50 day SMA.
If successful, the LTC / USD pair will be positive and will recover to the $ 178 level.
The logical stop limit of loss for trade is $ 127, which does not offer a good risk-benefit ratio. Therefore, we will wait before recommending any trade with the currency.
If the price drops resistance, you should find support at $ 141.
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