Connect with us

Analysis

Analysis: Ethereum and Monero Shine as Crypto Market Tops $120 Billion

Published

on

The cryptocurrency segment experienced some rotation after the first day of the week, as BTC showed some relative weakness following its strong break-out during the weekend. The most valuable coin still inched higher, and it got close to the $3500 level for the first time ever, but Ethereum, Monero, and NEM all gained more. BTC remains short-term overbought, but the currency hasn’t been hurt too much by the strong bounce in Bitcoin Cash, which got back to $350, as volatile trading continues in the forked coin.

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

BTC/USD, 4-Hour Chart Analysis

The divergence between the weaker and stronger majors remained apparent, as ETC and Ripple continued to trade sideways, still failing to join the rally. Dash and Litecoin also lack short-term bullish momentum, but both coins have a stronger long-term setup to encourage traders. The overall market mood is still positive and the sector is back at all-time highs regarding capitalization, although BTC is looking slightly stretched and taking on new long-term positions is not recommended here. Let’s take a look at the technical setup of the other majors.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Ethereum

ETH/USD, 4-Hour Chart Analysis

ETH is getting close to the most likely target of the current short-term move near $285, with the MACD indicator edging towards overbought readings. The coin has confirmed the trend change last week, and the token is finally is finally showing relative strength. That said, the all-time highs are still $120 away, and with the long-term momentum still only being neutral, more buying opportunities are likely ahead after the next short-term consolidation.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin is still trading in very narrow range right at the $46 level, holding to its gains from last week.  A move towards $50 and the prior high above $56 is still likely, and the long-term range projection target remains just below $60.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is right at the $200 resistance today, as it bounced back off the declining short-term trendline overnight. A break-out from the consolidation pattern is still likely, which would point to the re-test of the prior high above $220, with short- and long-term momentum indicators still being in neutral territory, and the coin being on a buy signal.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP continued to drift lower in a narrow range after breaching the 0.18 level during the weekend, remaining among the weakest majors. The long-term correction pattern is still intact, but the price is quickly approaching the declining trendline. Crucial resistance is ahead at $0.22 with support found at $0.16.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

ETC is also trading in a narrow range, failing to move above the $16 and $18 resistance levels. The long-term picture is still bullish, but a break-out of the declining trend would be needed to confirm the rally. Primary support is around the $14 level, providing a solid base for the token.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero reached above $52 today, still being one of the strongest coins, and trading just 10% off its all-time lows. While the short-term picture is getting overbought a rally to $58 is in the cards, but short-term traders should wait with new positions, and reduce exposure here. Support levels are now found at $50, $46, and near $42.

NEM

NEM/BTC, 4-Hour Chart Analysis

NEM remains bullish both short- and long-term although it failed to rally past the previous high on the BTC chart near 0.00009. That said, the break-out is intact and a move to 0.00010 is still the most likely scenario. Storng support is found at 0.000075, and below that near 0.00007.

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 255 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.




Feedback or Requests?

Analysis

Nasdaq Technical Update: Technology-Driven Index Poised to Retest 2018 High

Published

on

Technical Overview

  • On Tuesday (May 15), NASDAQ retested and held above the 7,320 level (April’s high – white horizontal trendline and white arrow in Figure 1).
  • Over the next 5 trading sessions, the index oscillated within a tight 90-point range (7,340 – 7,430). This price action was considered constructive as the consolidation occurred above short-term support.
  • Today (May 23), the index opened over 40 points lower, with an intraday low of 7,335, and moved up throughout the entire trading session. As the index opened at the daily low and closed at the daily high, it formed a white Marubozu candle (i.e. the candle has no upper or lower wick). While I haven’t done extensive testing on the pattern, other technicians have found the one-day pattern to carry almost no predictive power. It is the location of the candle that matters the most. Had it occurred just below a major resistance or after a sharp decline (i.e. indicating a “relief-rally”), the pattern may have proved to be insignificant. However, given the intraday low came less than 15 points away from the key 7,320 level, before moving sharply higher for the rest of the day, the pattern is deemed very significant.

Support levels:

// -- Discuss and ask questions in our community on Workplace.
  • The 8 EMA (yellow line, currently at 7,378).
  • The lower support of the large trading channel, currently at 7,360 and rising by roughly 7 points/day (green trendline; only lower support shown to avoid overcrowding of the chart).
  • The 7,320 level (April’s high)
  • The intermediate-term support (ITS – violet trendline), currently at 6,990.

Resistance levels:

  • The May 14 high (7,458).
  • The 2018 high (7,600 – 7,637) range

Figure 1. NASDAQ Daily Chart

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Implications

  • Today’s move is expected to mark the beginning of the leg-up that retests the 2018 high. The index needs to move above the May 14 high (purple horizontal trendline) to confirm and activate a short-term upside target of 7,600 (i.e. just below the 2018 high).
  • Long positions in index-tracking ETFs or constituents recommended as long as the index remains above 7,320

Outlook

  • Short-term bullish above 7,320.
  • Long-term bullish if the index breaks above its March high.
  • Short-term neutral if the index breaks below 7,320 but remains above its ITS (violet trendline).
  • Long-term bearish if the index breaks below the ITS.

Featured image courtesy of 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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.8 stars on average, based on 12 rated postsPublished author of technical research. In his work on price “gaps”, published in the 2018 International Federation of Technical Analysts’ Annual Journal, he developed a new technical tool for analyzing and trading the “gap” phenomenon – the “K-Divergence” (http://ifta.org/public/files/journal/d_ifta_journal_18). Besides obtaining a Master in Financial Technical Analysis, he has completed a BBA and an MBA from the Schulich School of Business in Toronto and has completed all exams for the CFA, CMT and CFTe designations. Currently, providing research to investment management and financial advisory firms. http://www.linkedin.com/in/konstantindimov




Feedback or Requests?

Continue Reading

Analysis

Falling Crypto Markets Signal Buying Opportunity

Published

on

After the spectacular performance of crypto prices in April, any person with a dose of common sense would have expected a big pull back this month.  By big pull back we are taking a page from the playbook of technical analysis so a 50% retrenchment would not be unusual.

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

Until just recently, May was shaping up as a calm consolidation of prices.  With the exception of Ethereum, most of the major market caps pulled back around 10-12% in relatively calm trading.  Crypto skeptics will point out how bitcoin and others have underperformed stock indices like the Nasdaq Composite that is heading for a positive return of over 4%. But there there are more important signs taking place.

This week calm has turned into a sizable selling wave with bitcoin, bitcoin cash and Ethereum falling 11%, 23% and 24% respectively.  So suddenly, what’s causing this to happen?

According to a headline in CCN:

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

The recent correction of the cryptocurrency market and the short-term decline in the price of bitcoin, Ethereum, and other major cryptocurrencies and tokens can be mainly attributed to three major factors: Bitfinex taxation policy, scandal of South Korea’s two largest cryptocurrency exchanges UPbit and Bithumb, and the initial sell-off of the Mt. Gox trustee’s bitcoin funds.

Accepting each of these factors in the face of the dramatic price declines should warm the hearts of investors.  Here is why it is a time for joy starting with the Bitfinex situation.

Bitfinex is the biggest bitcoin-to-USD exchange. Headquartered in the crypto tax haven of BVI, Bitfinex has requested personal information about it customers such as tax ID and social security numbers.  BVI is the home not only of Bitfinex but the chosen domicile of many ICOs.

The obvious source of this change in reporting policy can be drawn to U.S. pressure on BVI and the effect is clear.  Those investors who chose to resist the Bitfinex request sold their crypto.

We won’t go into all of the details of UPbit and Bithumb only to point out that this created a selling panic similar to Bitfinex.  Investors sell their crypto for good and obvious reasons but the reasons have little to do with the role of blockchain technology in the global economy.  In other words, when investment decisions are driven by fear, that spells opportunity nearly every time.

How Much Is the Downside?

Each of the factors mentioned is likely to be forgotten before any of us can imagine. Disaffected investors will simply find other exchanges to transact their business. This is not to condone those who choose to hide their identity.  It is simply a fact that there will will always be a location somewhere in the world that has loose tax reporting policies.

Knowing this means we need not fall into panic mode but actually welcome the crypto price correction and get ready to add to our portfolio.  The logical question that comes up is which name will produce the highest upside. The answer is that there is 30%-50% upside on average so choose your favorite flavor.

One thing worth remembering:  big cap names like bitcoin and Ethereun underperformed most altcoins during April, but are now showing the better downside relative performance.

So, in the next up leg, more risk orientated crypto investors will most likely get more action from names like EOS and Zcash to mention just two of many options. The market is displaying signs of rational analysis of risk and that is the sign of a maturing market.  In the long term scheme this is great news.

So answering the question, how much downside remains, is always an impossible task and can be a distraction.  Prices are back in a value range and that is the important conclusion.

Featured image courtesy of 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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
4 votes, average: 5.00 out of 54 votes, average: 5.00 out of 54 votes, average: 5.00 out of 54 votes, average: 5.00 out of 54 votes, average: 5.00 out of 5 (4 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.4 stars on average, based on 75 rated postsJames Waggoner is a veteran Wall Street analyst and hedge fund manager who has spent the past few years researching the fintech possibilities of cryptocurrencies. He has a special passion for writing about the future of crypto.




Feedback or Requests?

Continue Reading

Analysis

Pre-Market: Turkish Lira Spooks Markets, as Dollar Still in Focus

Published

on

Stock markets are broadly lower today, as yesterday’s risk-off shift continues to dominate trading, with the Turkish currency woes, the Italian political standoff, and the weaker than expected European PMIs providing ample ammunition to bears.

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

S&P 500 Futures, 4-Hour Chart Analysis

While the post-crash period since early February had its ups-and-downs, the best way to describe it is still a simple consolidation. In the US, trading has been taking place mostly in the range of only two sessions in early February, and the S&P 500 is still stuck in the middle of that range.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Forex markets are in turmoil, as Dollar-centered trading continues across the board, and the hunting season for vulnerable emerging market currencies is still on. The recent strength in the reserve currency together with the rising yields sparked an exodus from more risky assets across the globe and with the Euro hitting another 6-month low today, the pressure will likely persist. Investors await tonight’s Fed meeting minutes which could make a huge impact on the Dollar and equities, especially if the central bank cools down rate hike expectations after the strong Dollar rally.

EUR/USD, 4-Hour Chart Analysis

First, it was Argentina, now it’s Turkey that’s in the center of attention, as the country plagued by a huge private Dollar debt load end rampant inflation is highly sensitive to rising rates and a weaker currency.

USD/TRY (Turkish Lira), Daily Chart Analysis

More experienced investors could have a strong feeling of déjà vu, as the Turkish leadership is blaming a concentrated attack against the country, while the market is waiting for the inevitable central bank intervention in the form of an emergency rate hike. For now, there is still hope that the storm will pass, but should an outright currency crisis break-out, rate hikes won’t be enough, and even capital controls will only provide a temporary solution, and a hard landing for the economy will be almost guaranteed.

Europe Also Down as Oil Pulls Back

DAX Index, 4-Hour Chart Analysis

European stocks which have been lifted by the falling Euro in recent weeks fell to two-week lows today, after the bearish PMI releases and the lower than expected British inflation figures. While the string of negative economic surprises continued, emerging market woes were largely ignored by investors so far, and the rising short-term trends are still mostly intact throughout the Old Continent.

Commodities are lower mixed amid the large currency moves, as the Dollar’s strength weighs on the whole asset class. Gold is still stuck below $1300 despite its recent resilience, while Oil is trading just off its highs, even as the OPEC is reportedly contemplating a supply increase following the “normalization” of oil prices. The cartel which, led by Saudi Arabia has openly been seeking higher prices

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 255 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.




Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending