Connect with us

Analysis

Analysis: NEO Price Skyrockets to $30 as Major Coins Settle Down

Published

on

The aftermath of Monday’s massacre turned out to be very volatile, but now trading in most of the majors calmed down, with only NEO continuing its crazy period. The most affected coin by Chinese ICO ban surged higher today and it’s now trading near its pre-announcement levels above $30, after doubling from its crash lows in a matter of days. The coin is now right at the declining trendline that dominated its correction off the all-time high near $52, and the long-term picture still looks promising. Resistance is ahead around the $40 level while strong support is found near $22.

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

NEO/USDT, 4-Hour Chart Analysis

The largest crypocurrencies are all modestly higher, with Bitcoin Cash gaining the most in the improving environment, while Litecoin also holding up well after its strong rebound. The rest of the market is quiet, with the coins trading in narrow ranges. Ethereum, Ripple, Monero, Dash, and ETC are all still well off their rally highs and the segment is still not out of the woods, with the long-term technicals still signaling overbought conditions. Let’s see how the short-term charts look today.

// -- 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 -- //

Bitcoin

BTC/USD, 4-Hour Chart Analysis

Bitcoin continues to be relatively strong, as the weakness in the USD and the still looming geopolitical risks help the most valuable coin, and the post-fork momentum also continues to push the BTC higher. The currency tested the $4400 level this morning, and it remains above the crucial support, despite the still overbought long-term picture. We expect more corrective action form the coin, but for now the short-term picture remains positive. Crucial support levels are still found near $4000, $3800, $3500 and $3150.

Ethereum

ETH/USD, 4-Hour Chart Analysis

ETH is trading in the vicinity of the key $330 level, underperforming BTC during the rebound, but holding up above the $300 level after Monday’s strong decline. The coin faces short-term resistance near $350, and if the relative weakness of the token persists a dip towards the $300 level is likely in the coming days. Below that further support is found near $285 and $250, and investors should still wait with new positions until the correction runs its course.

Litecoin

LTC/USD, 4-Hour Chart Analysis

LTC continues to be the strongest major together with BTC, trading just below its all-time high after the sharp rebound of the past two days. The long-term picture remains overbought, but the short-term momentum could propel the coin to a new high. Resistance is ahead near $95, while support is found at $80, $75, and near $64.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is still stuck below the $360 price level after the bounce, and with the short-term momentum being back in neutral territory, the coin might be ready to roll over and head back towards $300. The long-term picture is still stretched, and more correction is likely before the next sustained move higher. Below $300 support is found at $265 and near $220.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP is still trading in the broad consolidation pattern that developed following the break-out from its long-term correction. The coin is hovering around the $0.22 resistance, and with the long-term picture still looking encouraging, we still advise long-term investors to hold on to their positions. Should the broad correction continue in the segment, the possible dips will present good buying opportunities, with support levels found at $0.20, $0.18, and $0.16.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic is trading just above the $18 level, similarly to XRP, both regarding the short- and long-term setups. The coin is expected to test the all-time highs after the current correction concludes, although volatile trading is expected until then. The long-term support zone near $14 should hold during the move, and the down swings could be good buying opportunities in the coin.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero is still overbought concerning the long-term picture, as it continues to trade below the $125 resistance, below the recent all-time high above $150. We still expect a move below $100 in the coming period, with further support levels found at $72 and $58. A short-term move towards the highs is still possible but long-term investors should still wait with new positions.

Featured image from 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?

3 Comments

3 Comments

  1. Andie

    September 7, 2017 at 6:08 pm

    “Skyrocket?” Rather hyperbolic.

  2. Attilathekilla

    September 7, 2017 at 9:00 pm

    Couple days ago we are sent a trade recommendation to buy ETH over 320 now we are told to wait as its expected to correct? . . . Would be nice to have an update on that specific trade.

  3. Chris G

    September 8, 2017 at 12:38 am

    Mati Greenspan recommended this one last week – should have scooped it up. I’m thinking it’s time to close short term positions on Ethereum.

You must be logged in to post a comment Login

Leave a Reply

Analysis

Bitcoin’s Record-Breaking Rally Continues as Prices Cross $8,100

Published

on

Bitcoin surged to new highs on Sunday, as the world’s largest crypto by market cap continued to generate bids following the cancellation of Segwit2x.

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

BTC/USD Price Levels

The value of a single bitcoin reached a daily high of $8,110.59, its best level on record. At press time, BTC/USD was valued at around $8,002 for a gain of 4%.

With the gain, bitcoin’s market cap now exceeds $133 billion. That’s roughly $100 billion greater than Ethereum, the market’s second most valuable cryptocurrency.

// -- 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 -- //

Bitcoin has added more than $1,100 over the past five sessions. It was down around $5,600 just one week ago.

Bitcoin Cash (BCH), a digital currency alternative that broke away from the original blockchain Aug. 1, was down 5.1% at $1,185. BTC and BCH locked horns earlier this month after the Segwit2x hard fork was abandoned.

$10,000 and Beyond?

Institutional clearing platform LedgerX has initiated its first long-term bitcoin futures option, which is set to expire Dec. 28, 2018. In setting up the option, LedgerX is assuming a price of $10,000 at the time of expiration. That’s a 25% premium on current levels.

Investors who buy the option are essentially saying they believe prices will exceed $10,000 by the time of expiration.

Bitcoin is being helped by growing institutional demand for the digital currency, as hedge funds, day traders and other mainstream investment outfits look to access this burgeoning asset class. CBOE and CME Group have each announced plans to integrate bitcoin into more conventional investment vehicles in the coming months.

The rush of institutional money into bitcoin is a sure sign that the digital asset class is becoming too big to ignore. The value of all cryptocurrencies in circulation has already exceeded $230 billion, with more than a dozen coins valued at $1 billion or more. Nine others have a market cap of $500 million or greater.

Coinbase Responds

The rise of institutional capital has also compelled Coinbase to introduce a custodial service targeted at account holders with more than $10 million in assets. This service targets hedge funds and other institutions that have remained largely on the sidelines of the crypto revolution.

In a recent blog post, Coinbase CEO Brian Armstrong announced that the new service will launch sometime next year.

“When we speak with these institutions, they tell us that the number one thing preventing them from getting started is the existence of a digital asset custodian that they can trust to store client funds securely,” Armstrong wrote.

In addition to maintaining the minimum $10 million asset requirement, institutions must pay a $100,000 setup fee to gain access tot he Custodial program. In response, institutional investors will receive assurance that their assets are secure.

The Coinbase Custody website lists broad support for bitcoin, Ethereum (ETH) and Litecoin (LTC), as well as ERC20 tokens. The ERC20 protocol has emerged as the favorite for startups launching initial coin offerings (ICOs), a controversial crowdfunding model that has already overtaken early stage venture capital.

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

Cryptocurrencies

Is Ethereum Ready to Play Catch Up With Bitcoin?

Published

on

In mid-June of this year, the difference between the market capitalization of bitcoin and Ethereum had narrowed down to less than $8 billion. This had many market participants excited. They expected Ethereum to dethrone bitcoin as the leader, a move popularly termed as flippening.

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

Key observations

  1. Ethereum has hugely underperformed bitcoin
  2. The chart pattern suggests that Ethereum is likely to play catch up in the next few months
  3. Stay on the long side of Ethereum to benefit from the bullish setup

However, fast forward five months and the difference in the market capitalization of the top two cryptocurrencies has increased to about $96 billion. This shows that while bitcoin has raced ahead in the past few months, Ethereum has hugely lagged behind.

However, is the underperformance about to end?

The chart pattern shows that Ethereum is likely to embark on a rally of its own that can carry it to $645 to $670 levels in the next few months. Let’s see how we arrived at these levels.

// -- 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 -- //

Ethereum opened trading at $8.16 on January 1, 2017. It started its rally in March and by June 12, it reached a high of $420, an astronomical rally of about 5047%. Thereafter, it entered a period of consolidation, digesting the gains.

On the charts, Ethereum has formed a large symmetrical triangle, which usually acts as a continuation pattern. The breakout is generally in the direction of the long-term trend, or the trend that was prevailing before the pattern formed. In this case, the sharp move from January to June confirms that the cryptocurrency was in an uptrend before forming the triangle.

However, this is not a fool proof trade because sometimes the symmetrical triangle acts as a reversal pattern. Therefore, the best way to play this trade is to wait for a breakout of the triangle before initiating any trade.

Where can we take an entry?

Currently, the resistance line of the triangle is at about $378 levels, a level close to today’s intraday highs. The bears are likely to strongly defend this level. However, if the bulls breakout of $378 and manage to close above the resistance line, the trade on the long side will set up.

Different traders use different methods to confirm whether the breakout is valid or not. Some wait until price moves 3% above the breakout level, others wait for three consecutive closes above the resistance level.

However, we have observed that the best breakouts never look back, hence, waiting for three days may lead to a missed opportunity. Therefore, we can wait for a closing above the resistance line of the triangle and initiate the long positions on the following day.

The breakout can face resistance at $400 and $420. However, we expect the virtual currency to scale both these resistances and rally towards its pattern target zone of $645 to $670.

Notwithstanding, even the most reliable patterns can fail. Therefore, our stop loss will be kept at $340. We don’t want to hang on to the trade if it falls back into the triangle. We shall raise our stops to breakeven as soon as Ethereum breaks out to new lifetime highs. From thereon, we shall trail the stops higher to protect our paper profits.

Note

The chart pattern suggests a resumption of the long-term uptrend in Ethereum. However, this will not get confirmed until the cryptocurrency breaks out and sustains above $380. Therefore, please initiate positions only on a breakout and close above the triangle. Entering presumptive trades may result in losses.

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

Long-Term Cryptocurrency Analysis: Bitcoin Flirts with $8000 as Altcoin Bull Persists

Published

on

Bitcoin’s swift recovery was the main topic of the week, as the most valuable coin not just regained its steep losses, but hit a marginal new high towards the end of the period. The entire segment is experiencing capital inflows as the total value of the coins climbed above $230 billion for the first time ever after finally leaving the vicinity of the $200 billion mark.

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

BTC breached the $8000 level before turning slightly lower on Friday, but despite the severely overbought daily chart, it is still trading near its all-time highs. As the long-term picture still suggests a deeper correction, investors should wait with opening new positions and traders should also control position sizes here. Key support levels are found at $7700, $7000, and $6700, while the recent key break-out level at $5000 still hasn’t been re-tested.

BTC/USD, Daily Chart Analysis

// -- 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 -- //

Dash is still the most bullish altcoin from a technical standpoint, despite this week’s short-term correction, as the coin is trading above its prior all-time high, and this weekend, it looks ready to test the break-out high near $500. Support levels are still found at $400, $360, and $330, and as the long-term picture is approaching overbought territory, investors should only hold on to their positions here.

DASH/USD, Daily Chart Analysis

The other major altcoins are also mostly in bullish setups, with some of them already in the latter stages of this cycle, like Monero and IOTA, but elsewhere in the segment, there are still opportunities for both traders and investors. Let’s see the detailed long-term view.

(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

Trending