As you all must know by now, I am a trader at heart, not an investor. It’s always been difficult for me to buy-and-hold, because I feel like I can see where corrections will take place, so why not sell if you know its coming?
But these last few days I am having a slight change of heart. There is so much money pouring into the cryptocoins, and there is no reason to believe that will stop soon. In fact, the amount of money pouring into there might just keep on increasing for years.
Case in point. Bitcoin. The last 2 times I saw a selloff was due, they both occurred, but were very weak corrections. That can only mean that there are a lot of buyers out there. Not like the old days when there was a small handful of crypto-traders. At that time, when a correction occurred there were no more buyers left – everyone was all in – and price plummeted.
So who are these new buyers? It doesn’t matter, but it seems likely that many of them have never heard of the altcoins. Last week they want to buy Bitcoin at $1800, but neglected Litecoin and his siblings at far cheaper prices. I don’t think that this ignorance will continue forever. One day in the not-distant future money will likely be pouring into the altcoins as well.
So it occurs to me that now the smart thing to do is just buy a ton of cheap coins, the ones that are moving, and sit on them. For example for every 10,000 XLM or XRP one buys, every 1 cent rise in price is worth $100. Is there anyone who doubts that the price of these coins will be more than $1 by the end of the year? They might be closer to $10 or $20. What if you bought 500,000 or a million of them while they are still cheap? That’s what the so-called Bitcoin whales did 5-6 years ago. With 500,000 of these cheap coins, every 1 cent rise is $5,000.
It seems like those of us lucky enough to be on this train at this juncture have a once-in-a-lifetime opportunity.
Like I said, it has taken a truly profound realization that we are in the beginnings of what might be a monster multi-year bull market to make me realize that investing is a better option than trading …
Speaking for myself, I will likely not short any market. When I see a correction coming I will look to buy more if I can, at lower prices. Its like we are in 1977 and buying yahoo and Microsoft stock at $1 a share, particularly in the case of the still really cheap altcoins that are seeing some volume.
DASH has been superglued to a 3rd arc pair for some time now. It is one right side of the pair now. Perhaps falling to the top of the square will be enough to shake it free.
ETC has been moribund since hitting the 3rd arc. When it gets to the arc again, let’s see what she does.
ETH has been stuck in an arc pair for some time. But it appears that she will be forced to either break up or break down. My guess is she will break upwards.
LTC corrected at the end of a square. She will test that 4th arc again soon. My guess is she will penetrate it.
Augur has had plenty of time to advance since clearing the last arc. The fact that she has not means she probably will continue moving sideways to the next arc.
XBT corrected at the 3rd arc of this setup as expected. But it was/is a weak correction. My guess is that the arc will yield on the next test. Next resistances are $2600 (4th arc) and $3600 (5th arc).
I like Stellar Lumens. I see that the 2nd arc has been a problem though. If the next test of the arc fails, price will likely fall. If it does, I will use the opportunity to buy more.
Remember: The author is a trader who is subject to all manner of error in judgment. Do your own research, and be prepared to take full responsibility for your own trades.
Cryptocurrency Analysis: Ripple Continues Rampage as Litecoin and Ethereum Enter Correction
Ripple remained in the center of attention in the segment after breaking out to a new all-time high yesterday, and the coin almost doubled in value, climbing above the $0.80 level. The currency concluded a 6-month long consolidation pattern with the move after being the only major on a long-term buy signal in our trend model.
XRP gave a short-term sell signal today, while turning neutral regarding the long-term setup. Investors now shouldn’t add to their positions, although further gains are still possible, and reducing holdings somewhat is a good idea here. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.
XRP/USDT, 4-Hour Chart Analysis
While Bitcoin stagnated, and Bitcoin Cash jumped, Ethereum, Litecoin, Dash, and IOTA has been drifting slightly lower, although the recent gains are still mostly intact, and the basic setup in the segment is unchanged.
Litecoin fell below the $300 level after yesterday’s consolidation, and the coin faced strong selling pressure in the latter half of the session. The currency remains extremely stretched regarding the long-term momentum indicators, and although the short-term uptrend is still intact, a deeper correction is likely in the coming weeks, with key support levels found at $125 and $100, and weaker levels at $260 and $170.
LTC/USD, 4-Hour Chart Analysis
Daily Analysis: Dollar Falls, Gold Jumps after Yellen’s Final Move
Wednesday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||56.65||-0.68%|
The Federal Reserve hiked interest rates as expected today, and although the central bank’s monetary statement was slightly more hawkish than expected, the market’s reaction didn’t reflect the much-anticipated move. The worse than expected Core CPI reading that underlined the low-inflation narrative weighed on the recently strong Greenback, while stocks were unchanged after decision and bonds gained ground as yields retreated.
EUR/USD, 4-Hour Chart Analysis
The major indices are hovering near their all-time highs with the DOW leading the way higher, hitting a new record for the second day in a row. While volatility Is expected to remain low as we approach the end of the year, market internals and valuation levels are still concerning from a long-term perspective, and stocks outside the US are also negatively diverging. The action in crude oil could be slightly more interesting as the commodity is starting to act in a slightly bearish manner after a grinding multi-month rally.
WTI Crude Oil, 4-Hour Chart Analysis
The Brexit process is still in the center of attention in Europe, although volatility took a nosedive on the old continent as well, and it’s unlikely that the Christmas period will be much different, given the predictable drop in volumes and trading activity. The date of the next election in the financially and politically troubled Italy has been set to March 4th next year, and the early date caused some turmoil in the countries assets, which dragged the Euro Stoxx 50 lower today, together with the DAX and the other major indices.
As the total market cap of the crypto-market crossed the incredible $500 billion mark, Ripple, NEO, and Ethereum made headlines with lofty gains in the face of the severely overbought readings elsewhere in the segment. While XRP and NEO are still not overbought from an investment perspective, Ethereum reached our final target for its break-out and triggered a long-term sell signal.
ETH/USD, 4-Hour Chart Analysis
The previously surging IOTA continued its correction, Litecoin consolidated in a relatively narrow range, while Dash, ETC, and Monero scored marginal new highs before turning lower together with BTC. The most valuable coin that has lost some of its momentum “mojo” in recent days fell back below last week’s highs, and that could mark a failed break-out and a start of the deeper correction that seems more and more likely.
BTC/USD, 4-Hour Chart Analysis
Key Economic Releases on Wednesday
|11:30||UK||Claimant Count Change||5,900||3,300||6,500|
|15:30||US||Crude Oil Inventories||-5.1 mill||-3.6 mill||-5.6 mill|
|21:00||US||Fed Rate Decision||1.5%||1.5%||1.25%|
Featured image from Shutterstock
Technical Analysis: Volatility on the Rise Again, as Ripple and Ethereum Hit Targets
Ripple has been the star of today’s session in the cryptocurrency segment, as the only major coin on a long-term buy signal in our trend model continued yesterday’s break-out, and surged to a new all-time high. The currency cleared the $0.425 level that marked the top in May, and after the more than 6-month long consolidation phase, it promptly neared the $0.50 level.
While the short-term momentum indicators are now stretched, the coin is still in an encouraging long-term setup, although the best period to buy already passed. The coin could be dragged lower in the case of the expected broad correction in the segment, but we expect XRP to outperform in the coming period, with support levels found at the prior high and below that in the range between $0.30-$0.32.
XRP/USDT, 4-Hour Chart Analysis
Ethereum has been the other top coin on the rise, as the second largest digital currency surged past the final range projection target of the break-out two weeks ago at $685 in the aftermath of the launch of the BTC futures on Monday. The ETH token is now also on a sell signal on all time-frames, and we advise investors and investors to wait for the next major correction to establish new positions. Support levels are now found at $575, $500, $480, and $400.
ETH/USD, 4-Hour Chart Analysis
- Cryptocurrency Analysis: Ripple Continues Rampage as Litecoin and Ethereum Enter Correction December 14, 2017
- Trade Recommendation: XMR/BTC Pair Throwback December 14, 2017
- Trade Recommendation: FCT/BTC Bullish Reversal December 14, 2017
- Can a New Generation of Regulated Token Sales Save ICOs? December 14, 2017
- Trade Recommendation: NZDJPY December 14, 2017
- Trade Recommendation: Bitcoin December 14, 2017
- Asian Market Update – Thursday: Ethereum Extends Rally; Asian Stocks down After US Rates Hike December 14, 2017
- Daily Analysis: Dollar Falls, Gold Jumps after Yellen’s Final Move December 14, 2017
- Crypto Market Reaches Historic Milestone as Ether, Ripple Surge December 14, 2017
- Technical Analysis: Volatility on the Rise Again, as Ripple and Ethereum Hit Targets December 13, 2017
A part of CCN
Analysis5 days ago
Long-Term Cryptocurrency Analysis: Look Out Below?
Recommendations6 days ago
Trade Recommendation: Litecoin
Analysis1 week ago
$100 Litecoin Looks Poised for Greater Upside
Cryptocurrencies4 days ago
Trade Recommendation: Zcash
Cryptocurrencies2 days ago
Trade Recommendation: Bitcoin Cash
Cryptocurrencies6 days ago
Trade Recommendation: Stellar
Cryptocurrencies6 days ago
Trade Recommendation: Ethereum Classic
Analysis3 days ago
Technical Analysis: Litecoin Continues Surge as Bitcoin Tests Highs