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Analysis: Dash Tests All-Time High as Bitcoin Correction Continues

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BTC settled down slightly after a swift 10% correction yesterday, and it continues to trade near the $4000 level, still being strenuously overbought regarding the long-term picture. The coin might be forming a short-term Head and Shoulders topping pattern, which would have a target price of $3200 if completed. That said, a move above $4200 could signal more short-term upside, with the 4-Hour MACD moving back to neutral territory. Long-term investors should still stay away from new positions after the huge rally.

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BTC/USD, 4-Hour Chart Analysis

Ethereum bounced back to the $300 level after yesterday’s dip, as the ecosystem is getting ready to a major upgrade. The trend is clearly up in the coin, as it is in Dash and Monero, while the rest of the majors are more neutral. Ripple and Ethereum Classic remain in downtrends, while Litecoin is still trading sideways, without a clear short-term trend. The coming days will be crucial for BTC and Ethereum, while Dash might be ready for its much-awaited break-out. Let’s look at the short-term charts for clues.

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Ethereum

ETH/USD, 4-Hour Chart Analysis

ETH approached the rising trendline during yesterday’s dip, but it remained clearly bullish and recovered above the crucial $285 level. The MACD indicator is about to provide a bullish cross, and the next leg up in the uptrend could begin in the coming days. Key resistance levels are ahead near $330, at $380, and above that near the prior all-time high at $400.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin is virtually unchanged today, trading near the $42 level after breaking below the advancing short-term trend. The coin is still in neutral territory both short- and long-term, and traders should wait with new positions until a new short-term trend is established. Support is still found near $42 and $38, with resistance ahead at $46 and $50.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash continues to act strong and the coin spiked higher today in early trading but failed to stay above its prior highs. The currency is still holding up well above the $200 level, and it is also above the prior triangle consolidation pattern, pointing to rally towards our range projection target just below $260.

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple is still the weakest major short-term showing no signs of an imminent break-out, despite the more than two-month long correction. The coin is still inside a forming long-term base pattern, but short-term traders should wait for a break-out from the current pattern before entering new positions. Resistance is ahead near $0.16 and $0.18, while support is found at $0.14.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic showed some strength near the lower boundary of its crucial support zone around the $14 level, but the coin remains well inside its correction pattern. Strong resistance ahead at $16 and at $18, and short-term traders should wait for at least a move above $14.50 before entering new positions, while investors could still add to their positions here.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero is still trading inside a short-term consolidation pattern near the $46 level, still showing relative strength after its encouraging rally. Further support levels are found at $42 and near $37, while the prior all-time is ahead as resistance above the recent swing high at $53.50.

NEM

NEM/BTC, 4-Hour Chart Analysis

NEM continued its bounce against BTC as expected, spiking above the 0.000065 level amid the Bitcoin correction. The coin is still likely to re-test the 0.00009 level in the coming period, as the long-term picture remains bullish. Support is found near the 0.0000575 and 0.000048 levels, with primary resistance ahead at 0.000075.

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Analysis

Technical Analysis: Bitcoin Grinds Higher as Records Tumble in Altcoins

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The historical surge in the segment, which is the second such move this year, continued today, with another round of break-outs in some of the major altcoins and tepid gains for BTC investors. Ethereum, Ripple, Dash, and first and foremost Litecoin was leading the charge, with the recent star LTC topping $300, just after a day of hitting the $200 mark.

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Litecoin defied all odds after reaching extremely overbought readings, and the coin rode the speculative wave, turning exponential, not unlike IOTA and Bitcoin previously. With the coin being stretched in an unprecedented way on all time-frames, investors could even consider selling their core positions at the current levels, as a deep correction is almost granted in the coming period. The first meaningful support level is found at $125, and a re-test of the $100 level is probable during the next major correction.

LTC/USD, 4-Hour Chart Analysis

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Ripple finally ended a long period of relative weakness today, and the only major on a long-term by signal jumped over primary resistance at $0.26 and crossed the $0.30-$0.32 too in the euphoric sentiment. As the coin is not long-term overbought following the 6-month long consolidation, the buy signal in XRP remains intact, with the only major resistance level being found at the all-time high near $0.425.

XRPUSDT/USD, 4-Hour Chart Analysis

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Technical Analysis: Litecoin Continues Surge as Bitcoin Tests Highs

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With the crypto world being focused on the historical futures launch, the major coins all enjoyed buying following a hectic weekend, and a volatile week as a whole. BTC itself got another boost from the widespread publicity and the volatile correction of the recent days ended, with the most valuable coin bouncing back towards its all-time high.

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While the long-term picture remains severely overbought, the short-term picture is not stretched and further gains are possible even amid the elevated correction risk. That said, investors should wait for a more favorable entry point to ad dot their holdings, while traders should control position sizes in the light of the long-term setup. Major support levels are now near $13,000, $11,300, and $10,000, with stronger levels still at $8200 and $7700.

BTC/USD, 4-Hour Chart Analysis

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The major altcoins are all up today, but only Monero and Litecoin are still within short-term uptrends, and the segment as a whole is still dangerously overextended, and a deeper correction is very likely in the coming weeks. LTC continued its recent break-out, getting close to the $200 level, and joining the extremely overbought group regarding the long-term momentum, and triggering a long-term sell signal in our trend model. Key support levels are found $100 at $75 and $64, with a weaker primary level at $125.

LTC/USD, 4-Hour Chart Analysis

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Analysis

Long-Term Analysis of the Silver Market

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Silver

The silver market has once again caught investors’ interest as the price is nearing areas not seen since late 2008.

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2017 started at a low point for silver, and it seems it will end the year that way as well, meaning investors who bought at the beginning of the year haven’t suffered nor gained much.

This doesn’t mean, however, that the price hasn’t moved during the year. After the low start of the year, silver quickly tacked on about 18% to a top of $17.50 per ounce.

In terms of fundamentals in the silver market, things look a bit complicated for 2018. There are multiple forces pulling in different directions for the price of silver going forward:

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Positives

  • A sharp stock market correction can be expected to occur some time in 2018. Most likely, this will happen sooner rather than later. Stock market crashes always trigger a flight to safety, meaning gold, silver, and quite possibly bitcoin, can benefit.
  • We are seeing signs that inflation may be starting to rise again, although this is not confirmed yet. Rising inflation is always good for precious metals.
  • If the US federal budget deficit widens as a result of the new tax reform, the US dollar may suffer as a consequence. Goldman Sachs put out a note to investors in November 2017 saying that the US debt is “on track” to reach an “unsustainable” level in coming years. Fed Chair Janet Yellen has also said about the US debt that it is “the type of thing that should keep people awake at night.” Rising debt levels creates uncertainty about the economy, which is generally good for gold and silver.

Negatives

  • Central banks around the world seem committed to raise interest rates in 2018. Rising interest rates are bad for precious metals because it would make it more attractive to put money in the bank.
  • The cryptocurrency bull market is on track to continue, diverting attention and capital away from precious metals as a traditional store of value. However, this one is uncertain, as it may also be considered a positive in the way that the rise of cryptocurrencies brings the inflationary and unsustainable nature of fiat currencies into focus.
  • The US dollar may have hit a bottom in 2017 and trade higher compared to other major fiat currencies going into 2018. A stronger dollar is always bad for precious metals, which are priced in dollars.

Silver chart

When looking at the chart, we can see that silver is back down to were it started the year, which coincides with a major support area where it has turned several times in the past few years.

From a technical perspective, silver has been trading in a triangle pattern on the longer-term weekly chart, with the price now trading very near the lower end of the triangle, adding confluence to our bias that silver will trade up from here.

Silver failed to live up to our prediction from early 2017, and is now even trading well below the level from that time.

A low price by any measure combined with two major technical support levels adds confidence to our trade and makes silver a low risk and potentially high reward trade for 2018.

Depending on your own strategy and investment style, you may want to wait for the price to break out from the current triangle pattern it has been trading in for the past year and a half. You would then give up some of the potential return for an even safer trade. After that, major resistance is found around $17.50 and $18, with lots of upside potential if we can finally break through those levels.

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