Bitcoin started the day deep in bear territory at $6700, before testing a low of $6200. Though it has slightly retraced back to $6400, the momentum is still bearish, and could see Bitcoin test $6000 in the next 24 hours. As such, for a trader looking to trade in bitcoin (BTC), a short entry at $6400 with a target of $6000 is most ideal. A break below $6000 could see Bitcoin retest 5800, a price level that has offered significant support in the past.
However, if there is an upsurge in buying volumes and bitcoin (BTC) pushes above $6700, it would be more practical to go long with a target of $7000. The volatility in the market makes such wild price swings possible within the day.
Like the rest of the market, XRP started the day in the red, and hit a low of $0.26. However, it has since retraced, and is now trading in a narrow range between $0.286 and $0.278, though overall momentum is still bearish. For a day trader, the key level to watch is $0.278. If XRP breaks below the price level, then it would be most practical to go short, with a profit target of $0.257. This is a level that has offered a significant level of support in the last few weeks.
However, if there is a surge in buying volumes and the price breaks above $0.308, it would be most pragmatic to go long, with a target of $0.32.
Litecoin is heavily bearish at the moment having broken below the 100-day moving average support level at $59 to test a low of $53. Going by the heavy bearish momentum in the market, Litecoin could drop further and test a low of $51.33. That’s a key support level, at which Litecoin (LTC) could range for a couple of days.
However, if a sudden volumes spike takes Litecoin (LTC) above $58, a long entry would be more ideal, with a profit target of $60.63 in the day.
Stellar opened the day in the red, but its drop has been minor relative to most of the market. In the day, it has touched a low of $0.192 before consolidating at $0.198 – $0.196. For a day trader looking into Stellar (XLM), it’s most practical to wait for a break outside of this range. If the price breaks below $0.196, a short entry would be idea with a target of $0.184. That’s a more long-term support level, one that would most likely hold.
But if the price breaks above $0.198 and momentum pushes it above $0.20, it would be best to go long, with a target of $0.21. However, with the heavy selling volumes in the market today, a short entry offers the best risk/reward ratio for a day trader.