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Analysis: Coins Rally On as Selling Pressure Eases

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The recovery in the major coins continued so far this week, as Bitcoin and NEO are leading the market higher after a choppy weekend. Friday’s decline faded away as the most important support levels held, with BTC remaining above $3500 and Ethereum bouncing off $250. BTC is now nearing the $4000 level after breaking above the declining trendline, and providing a short-term buy signal. Strong support is found near $3800, $3500, and $3150, while above $4000 key resistance is ahead at $4400.

BTC/USD, 4-Hour Chart Analysis

The other majors are mixed this week, as correlations are breaking down following the concerted moves of the deep correction. NEO which was one the most affected by the China-related sell-off is surging higher off its lows, and Litecoin is also among the better performing coins after a period of relative weakness. The rotation, that is a bullish characteristic left Dash, Monero, and IOTA slightly lagging but still in bullish long-term positions. As the performance of the majors is starting to differ more, let’s look at the short-term charts for clues.

Ethereum

ETH/USD, 4-Hour Chart Analysis

ETH showed considerable relative strength during the weekend, and the coin is holding up well above the crucial $285 level, although it failed to rally above $300. The coin is also trading well above the declining trendline and it might be very close to a break-out form the short-term consolidation pattern. Above $300 the next crucial levels are found at $330 and $380, while support is found near $250 and $235.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin is yet to provide confirmation of the end of the correction, as it is still trading below the declining trendline and the key $56 level. That said, the coin recovered above $51 and it is relatively strong today, but for now, short-term traders should still wait with new positions. Above $56 resistance is found near $64, while support is near the $44 level.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is still trading above the declining short-term trend despite the bearish pressures in the segment, and the coin is now far off from yesterday’s rally highs near $360. The all-time high just above $400 is also in sight, but a dip towards $300 is still likely before a sustained move higher, as the rest of the majors are still clearly in correction mode. That said, long-term investors should be buying the short-term dips, with further support found near $265.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP is getting close to breaking out from the declining trend while holding up above the $0.18 support. We still expect a rally above the key resistance zone near $0.22 level soon as the effects of the broad correction wane. Further support is found at $0.16 and $0.14 while resistance is ahead around the $0.195level and above $0.22 at $0.26.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic broke out from the short-term declining trend, but it remains just below the long-term trendline, still being the weakest major concerning the technical picture. The coin faces strong resistance around the $13.50 level, and although the current prices are attractive for long-term investors, short-term traders should still wait for a confirmed trend change.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero remains among the weaker majors concerning the short-term picture, as it is working way through the correction of its prior stellar rally. The coin is still stuck between the $80 support and the $100 resistance, and further choppy price action is likely before a sustained move higher. That said, long-term investors should already be buying the short-term dips, with further support at $68 and resistance at $125.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO has been the star of this week so far, rallying past the $25 level today after trading near the $16.50 support during the weekend. After breaking out from the declining trend, the coin cleared the $22 resistance and posted a short-term buy signal. Despite the lofty gains, the current levels are still attractive for long-term investors as well, with resistance now ahead at $30.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA held the $0.45-$0.48 support zone once again during the weekend, and that level could be the base for the next major move higher. The coin remains bullish regarding the long-term picture, and a break-out from the short-term consolidation pattern would open up the way towards $0.64.Further resistance is ahead at $0.75 while support is found near $0.35.

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Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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Analysis

Crypto Update: Bitcoin Plunges Below $6500 as Heavy Selling Resumes

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The cryptocurrency segment is having another very negative day after a calmer period, as selling pressure intensified yet again. All of the major coins turned sharply lower, with the laggards of the recent period, Litecoin, Monero, and Dash confirming their downtrend and the relatively stronger coins also taking a beating.

The total capitalization of the segment dropped below $270 billion, and from a long-term technical standpoint, several currencies are in precarious positions. With no clear news catalyst behind the move, technicals are playing a very important role, and last week’s lows will likely be in focus in the coming days.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is still relatively weak both on the short- and long-term time-frames, and it dropped back to the $6275-$6500 zone that has been acting as primary support during the recent leg lower. Given the importance of the long-term zone between $5850 and $6000, a break below $6275 could set up a crucial test in the coming days. For now, traders still shouldn’t enter new positions, while investors should hold on to their coins as the bullish secular trend is still intact.

No Hiding From the Selloff as Altcoins Broadly Lower

LTC/USD, 4-Hour Chart Analysis

With the weakest coins leading the way lower again, new swing lows are likely in the majority of the coins, although there is still hope for bulls that a major long-term breakdown can be avoided. Ethereum fell below $500 after touching the declining short-term trendline, and it remains in a bearish trend, even as it’s still in a much better technical position compared to BTC, holding up well above the April lows, and being further away from last week’s swing low as well.

ETH/USD, 4-Hour Chart Analysis

 That said, we remain negative regarding the short-term outlook for the second largest coin, and traders shouldn’t enter new positions here.  Above the $500 level, strong resistance is ahead between $555 and $575, while primary support is found at $450, with further zones near $400 and $480.

BNB/USDT, 4-Hour Chart Analysis

There are no real hiding places for crypto investors from the current selloff even as Binance Coin is still holding up relatively well, within a clear uptrend and above crucial technical support.  That said, as we warned before, given the broad downtrend in the segment, traders should be cautious with new short-term positions.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 279 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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Analysis

Italy Spooks markets Again as Stocks Remain Under Pressure

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European stocks Led the way lower today despite a bullish start in Asia, as equities gave back their gains when Daimler published a surprising profit warning, which was deeply affected by the recent trade war developments, reigniting fears of a tariff-driven downturn in global trade.

DAX, 4-Hour Chart Analysis

The Old Continent got into more trouble later on, when two anti-EU officials were named in Italy, resurrecting fears of a clash between the systematically crucial country and the core of the Eurozone. Italian yields rose in European trading, and although they are still shy of the levels hit during the May scare, the periphery could be in trouble as the ECB pledged to exit the market by the end of the year.

Nasdaq 100 Futures, 4-Hour Chart Analysis

The main European indices were smashed lower during the session, with the DAX hitting a two month low, still being very weak relatively speaking compared to its US peers. US stocks sold off heavily following the opening bell and they failed to recover, unlike two days ago, and the major benchmarks traded well below yesterday’s levels just before the close.

The Nasdaq and the Russell 2000 lost some of their recent mojo, pulling back heavily of the all-time highs during the day. All in all, the risk off shift continues to dominate across the board, as we expected and we remain negative on risk assets here, especially regarding emerging markets, even as the Dollar’s rally could be over for a while.

Dollar Pulls back as Pound Surges

USD/CAD, 4-Hour Chart Analysis

The Dollar took a beating as the Philly Fed Index came in much worse than expected, and as the Bank of England sent hawkish signals, pushing the Pound and the Euro higher. The central bank left its benchmark rate unchanged at 0.5%, but a rate hike this year got much closer, with a key member of the bank voicing inflationary concerns.

The Greenback fell more than what the events would imply, so a larger scale consolidation could have already started in the currency following the recent gains and the marginal new high yesterday. With the EUR/USD pair nearing the 1.1450-1.15 support zone, the USD/CAD hitting 1.33 and the AUD/USD touching 0.7350, a meaningful counter-trend move would be timely in the surging reserve currency.

WTI Crude Oil, 4-Hour Chart Analysis

Gold continued to drift lower before the Dollar’s reversal and it hit $1262 for the first time since lat December before bouncing back above the $1270 level in late trading. Crude oil also fell sharply in early trading, and the WTI contract traded with a $64 handle before rallying back to $66 per barrel.

The OPEC meeting, which is expected to result in a supply increase by the cartel made the crucial commodity very volatile in recent days, but we expect the bearish trend to continue, with a likely dip to the $60 level in the coming weeks.

Featured image from Shutterstock

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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Analysis

Crypto Update: Coins Drift Sideways as Trading Activity Plunges

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Liquidity dried up in the cryptocurrency segment in recent days, as trading volumes have been declining progressively, while the major coins got stuck in tight ranges. Only a few coins show signs of activity, and the bearish short-term patterns continue to dominate the market. With a group of currencies, namely Litecoin, Monero, Dash, and Bitcoin itself clearly dragging the segment down, the short-term trend will likely continue, as the previous leaders are now showing strength either.

While all of the top digital currencies are showing some gains today, and the total value of the market edged close to $290 billion, major resistance levels are still towering above. The fact that the effect of the Bithumb hack faded away quickly is a positive here, but until signs of bullish momentum and a clear leadership forming, the short-term outlook remains bearish.

BTC/USD, 4-Hour Chart Analysis

Bitcoin continues to trade near the $6750 level, edging ever closer to the declining short-term trendline, in a bearish consolidation pattern. Bulls would need a sustained move above $7000 to negate the declining trend, but for now at least a test of last week’s lows is likely with a possible move towards the key long-term zone between $5850 and $6000.  The short-term zone around $6350 level provides support, while further resistance is ahead near $7350.

Ethereum Nears Trendline as ETC Attempts Breakout

ETH/USD, 4-Hour Chart Analysis

Ethereum has been among the strongest coins in the last few days again, and coupled with its long-term relative strength, the second largest coin is still the best candidate to lead a recovery. That said, the coin still faces strong resistance between $555 and $575, and bullish momentum is suspiciously weak. Primary support is found at $500 with further zones near $450 and $400.

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic has been positively diverging compared to the rest of the market, together with Binance Coin, and to a lesser extent Tron ever since its inclusion to Coinbase, and the coin moved above the key $16 resistance yesterday in late trading.

While ETC is slightly overbought from a short-term perspective, a consolidation above $16 and a subsequent move higher could confirm a trend change. For now, the short-term trend signal is only neutral, and traders should remain cautious given the broad downtrend in the segment

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 279 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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