Connect with us

Cryptocurrencies

A Little Breakout Goes a Long Way

Published

on

Happy Canada Day, Eh?

// -- Discuss and ask questions in our community on Workplace.

The afternoon session is likely to be a bit muted as the US indexes close out early in preparation for the 4th of July. However, even though the Yanks Knucks are taking a long weekend, the markets should remain pretty fluid.

The real downtime will come in tomorrow evening when they light up the barbecue and start the fireworks stocks and commodities will take a rest.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

There is a possibility of fireworks in the Cryptomarkets of course because Cryptos have no borders and no national holidays. They trade 24/7/365!

Mati Greenspan
eToro, Senior Market Analyst

 

Please note: All data, figures & graphs are valid as of July 3rd. All trading carries risk. Only risk capital you’re prepared to lose.

Market Overview

It’s already been quite an eventful day in Asia. Some positive manufacturing data has come out from both China & Japan but that’s just the icing on the cake.

China has just opened up their $9 Trillion debt market to foreign buyers through a link in Hong Kong. Now, anybody who wants to buy Chinese bonds can do so even if they are not Chinese citizens. A huge step towards the goal of opening the Chinese markets to global investors.

In Japan, the mood is not quite as celebratory. Prime Minister Shinzo Abe has suffered a humiliating defeat in local Tokyo elections and will very likely need to make some cabinet changes in the near future in order to consolidate his power.

Mr. Abe’s policies are one of the main reasons that the Japanese Yen has been so weak over the past few years. Here take a look at the USDJPY since Abe’s election in December 2012.

(Remember USDJPY shows Dollar strength so chart going up means Yen getting weak.)

Here Comes Phil

After Theresa May’s embarrassing victory in the snap elections last month, a softer brexit now seems to be the order of the day.

Chancellor of the Exchequer Philip Hammond, AKA Spreadsheet Phil will be filling us in on some important details today. Phil was feeling a lot of pressure before the elections as a soft brexit guy in a hard brexit world. But now that the public yelled soft, his position has somewhat firmed.

Big businesses who were feeling sick to the stomach about leaving the EU will be feeling a bit better today listening to level-headed Phil, especially after the Bank of England’s show last week.

The GBPUSD is sticking firm to its psychological resistance of 1.3000. With a little help from Brexit, the Pound is much cheaper than anybody could have dreamed two years ago.

Now, thanks to a BoE who is looking more likely to firm up the Pound, and a government who isn’t looking to tank it, a little breakout could go a long way.

Ether way

Both Bitcoin and Ethereum seem to have found themselves a comfortable price range.

Just looking at the technical analysis we can see some triangles forming in the markets.

Here’s Ethereum…

and here’s Bitcoin…

With this type of pattern, technical analysts will expect the price range to continue to diminish until eventually it is forced to break out.

For example, Litecoin had a little breakout last night (blue circle), which very quickly turned into a whopping swing (orange rectangle).

With the absence of any strong fundamental information, these technical moves on the charts become extremely significant to short term traders.

Let’s have an amazing week ahead!

This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation.

Past performance is not an indication of future results. All trading carries risk. Only risk capital you’re prepared to lose.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

1 Comment

1 Comment

  1. embersburnbrightly

    July 3, 2017 at 7:18 pm

    I enjoyed the word play in this article. Hoping that ETH and BTC fairly quickly follow the same pattern as LTC!

You must be logged in to post a comment Login

Leave a Reply

Altcoins

Bitcoin Cash Spikes on South Korean Volume

Published

on

Bitcoin cash (BCH) resumed its uptrend Friday following a sudden spike in South Korean trade volumes. Recent activity in the Asian country suggests that the bitcoin alternative could gain more exposure in the short term.

// -- Discuss and ask questions in our community on Workplace.

BCH/USD Price Levels

The BCH/USD exchange rate surged above $1,750 on Thursady, where it was still some $800 shy of the all-time high. Prices would later consolidate below $1,700 as markets paced the gains. At press time, BCH/USD was up 6.6% at $1,662.

With the recent gain, bitcoin cash is worth a combined $28.4 billion, according to CoinMarketCap. That puts it third among active cryptos, behind online bitcoin and Ethereum.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Thursday was bitcoin cash’s second major spike of the month, with more traders backing the alternative blockchain. After months of futility, BCH caught fire in mid-November after the backers of Segwit2x abandoned their planned hard fork. Following an initial spike, bitcoin (BTC/USD) declined sharply.

The complete opposite has occurred in recent weeks, with bitcoin cash tempering its advance and BTC adding thousands en route to multiple record highs. The original bitcoin was down more than $110 on Friday, but continued to trade well north of $8,000.

BCH has put up strong gains in recent weeks, a clear sign that the market has moved to a higher base. The cryptocurrency struggled to make a name for itself after it broke away from the original blockchain on Aug. 1. Based on the latest price action, BCH is making the case for a return to $2,000.

South Korea Factor

Trading activity in South Korea continues to be at the center of bitcoin cash’s rally. The Asian country has emerged as a major player in the global cryptocurrency market, with investors there showing a greater propensity to adopt altcoins.

On Thursday, the country’s Financial Supervisory Service (FSS) said it had “no plans” to monitor the cryptocurrency space because it believes the digital tokens do not represent real money.

“Though we are monitoring the practice of cryptocurrency trading, we don’t have plans right now to directly supervise exchanges,” said Choe Heung-sik, the agency’s chief. “Supervision will come only after the legal recognition of digital tokens as a legitimate currency.”

Positive vibes from South Korea may be partially responsible for the huge upswing in trading volumes tied to BCH. Trading volume in the cryptocurrency has risen above $4.1 billion in the past 24 hours, according to CoinMarketCap. That’s the highest level in nearly two weeks.

Bitcoin cash is also benefiting from Bitstamp’s decision to integrate the cryptocurrency next month “in response to the demand.”Bitstamp is the world’s twelfth largest digital currency exchange, according to Business Insider.

Separately, digital wallet provider Bitwala announced plans to integrate BCH into its platform, a clear sign that the token was gaining wider acceptance. The platform, which has more than 57,000 users, said it will now facilitate storage of BCH as well as money transfers. The team also said it is working hard to integrate mobile BCH wallets in the near term.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Analysis

Technical Analysis: Litecoin and Ethereum on the Move as Rotation Continues

Published

on

The altcoin bull run continued today despite the US Thanksgiving holiday, as trading remained active in the majors, and another important break-out occurred, this time in Ethereum. Litecoin is also strong today, and the coin is testing the key $75 resistance level, as it follows in the track of ETH again. The currency still looks set to hit the next target at $82.50, with the all-time highs below just below the $100 level also in sight. While the long-term momentum is edging towards overbought territory, the coin remains bullish on both time-frames, with strong support still found at $64 and $56.

// -- Discuss and ask questions in our community on Workplace.

LTC/USD, 4-Hour Chart Analysis

Ethereum scored a new record high after moving past $400 for the first time in five months, and considering the lengthy consolidation before the move, more upside is likely for the second largest coin. With the long-term momentum still not being overbought, the token’s price might test the $500 mark in this leg higher, with Fibonacci targets ahead at $475 and $512. Support levels are found below $400 at 4380 and $350.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

ETH/USD, 4-Hour Chart Analysis

Ripple is also attempting another bullish move, while Monero and Dash are consolidating just below their recent highs, while IOTA is in a short-term correction pattern as well. More and more altcoins are now in the latter phases of their rallies, just like Bitcoin, but traders still have opportunities with favorable risk-rewards ratios. Let’ see the short-term charts.

(more…)

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Altcoins

Zcash Dip Offers Chance to Buy

Published

on

The ZEC/USD pair went into a downtrend for several days after hitting the 435 level in June. It shed more than half of its value before establishing strong support at 140. The market tried to reclaim resistance at 310 twice, but was sent back on both occasions. As a result, we have a massive reversal structure that might skyrocket the pair into a new all-time high.

// -- Discuss and ask questions in our community on Workplace.

The market closed above 310 a couple of days ago on weak volume which is why it’s struggling to stay above that level. Technical indicators show that momentum is weakening, increasing the likelihood of a dip. A slight correction not only gives the market legs for its next move up, but it also offers you a chance to place orders.

They key indicator to watch for is volume. As long as volume remains sluggish, the market will most likely slide down to 280 first and then 262 next. That’s a good zone to accumulate positions. If volume suddenly spikes, at least 230k at Bitfinex, then we have a legitimate breakout that will take the market to 465.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

 Summary of Strategy

Buy: between 280 and 262 OR confirmed breakout with volume of at least 230k at Bitfinex

Support: 280, 262, and 243

Resistance: 310, 352, 400, and 412

Target: 465

Stop: If the market breaches 243

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

 

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Trending