The action in the crypto markets over the weekend has been simply phenomenal. After the Segwit2X hard fork was called off last Thursday the crypto markets have been bouncing around like a kangaroo on steroids.
Most of the action has been centered around the new version of bitcoin known as Bitcoin Cash or BCH. eToro is very proud to announce that we have now added BCH to our platform for your trading and investment pleasure.
Please feel free to join the discussion or place a trade directly at: https://www.etoro.com/markets/bch
eToro, Senior Market Analyst
Please note: All data, figures & graphs are valid as of November 13th. All trading carries risk. Only risk capital you can afford to lose.
BCH is a rather new player on the Crypto-scene. It was created on August 1st as an alternative to BTC and has blocks that can hold up to 8 MB worth of transactions, whereas the original bitcoin is capped at 1 MB. Though Bitcoin Cash is very far from claiming bitcoin’s title as “digital gold” it has made some strong advances over the weekend.
Some cryptocurrency miners discovered that for a few brief hours it was actually more profitable to mine BCH than BTC, which caused many of them to switch over.
In this graph, we can see that the mining power, also known has the hashrate, for BCH has now overcome that of BTC…
Even though mining profitability has now returned to its former status, many have still not switched back and there remains a very large backlog of unconfirmed transactions on the Bitcoin Blockchain.
122,000 transactions could take a while to work through so anybody sending bitcoin right now will either need to pay a higher fee or wait a bit longer for their transactions to be confirmed. However, I did see this number as high 176,000 at the height of the chaos.
The price action on bitcoin cash since Thursday has been insane. There are many conspiracies floating around the web that this has all been one extremely elaborate pump and dump. Of course, you don’t need to dig deep to know that some of the biggest backers of this new coin are rather shady fellows indeed.
The price went from a steady $637 per coin all the way up to $2,500 in under 60 hours before giving most of it back.
Most of this value came directly from BTC, which is now showing a notable pullback from its all time highs just shy of $8,000. The first support of $5,500 (blue) has already been triggered. However, if this cash splash continues, we should see strong psychological support every $500, until we hit the yellow trend line.
The big winner on the side has been DASH coin. With all the drama on the main chain, Dash has been seeing some excitement as an already established internet payment method. After breaking out of its consolidation triangle a week ago, the price has seen its own explosion, stealing just a bit of the market cap from bitcoin itself.
The traditional stock markets seem to be on pause. After eight straight weeks with nothing but gains, we’re now seeing some of the indexes registering losses. European markets fell about 0.5% on Friday and the Asian session this morning is giving rather mixed signals.
In Friday’s update, we spoke about Oil. Prices have come off of their highs and West Texas Crude is now going for $56.75 a barrel. Coming into focus now is the OPEC meeting on November 30th. The price controlling cartel is doing their best to build up expectations for this meeting. At this point, they’ve done such a great job that it will prove difficult to deliver up to said expectations.
Also, tomorrow there will be a great gathering of global central bankers in Frankfurt. These type of meetings sometimes prove vital to understanding the long term trends, so of course, we’ll have more on that in tomorrow’s update.
Wishing you a very profitable week ahead!
This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.
The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.
Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.
Technical Analysis: Bitcoin Up Again as Altcoins Mixed in Volatile Trading
Bitcoin is at a new all-time high today, although the momentum of today’s move is far below from what we saw recently, and the coin only managed to reach a marginal record high yet again. BTC is now worth $300 billion, and it is still trading right at the short-term trendline, inside a rising wedge pattern that shows a clear momentum divergence.
With the short-term trend still being intact further gains are still possible, but as all the majors are overbought from a long-term perspective, we still advise investors to wait for a better buying opportunity before adding to their holdings. Primary support is still found near $13,000, with further levels at $11,300, $10,000, $9000, and stronger levels at $8200 and $7700.
BTC/USD, 4-Hour Chart Analysis
XRP entered a volatile short-term correction after its two-day surge after giving a short-term sell signal yesterday, and the coin spiked back towards $0.60 before settling down just below yesterday’s highs. The long-term setup also turned overbought thanks to the almost 300% rally, and now investors should reduce their holdings, even as further gains are still possible. 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
Trading recommendation: Lisk/Bitcoin
The best way to trade a range-bound market is to buy at the lower end of the range and sell at the upper end. If the range is large and well established, it offers us a good risk to reward objective. We believe that LSK/BTC fits the bill and offers us an attractive opportunity to buy at the support and sell at the resistance.
- LSK/BTC has formed a large trading range.
- Buy at the lower end of the range.
- Sell at the upper end of the range.
LSK/BTC has been trading in a large range of $0.00046 on the lower end and $0.0016 on the upper end. On three occasions, the cryptocurrency pair has bounced off the supports. Similarly, it has returned from the $0.0016 levels thrice. The range is well defined. Currently, price is trying to rebound after breaking below the lower end of the range last week. We believe that a buy at current levels offers us a low-risk and high-reward trading opportunity.
On December 07, the cryptocurrency pair broke below the support of $0.00046. However, the very next day, it climbed back into the range, which is a positive indication. This shows that the bulls want to keep the range intact. However, the rally from the lows hit a roadblock at the 20-day EMA.
Currently, LSK/BTC is again pulling back towards the lower end of the range. If the support holds, we believe that the digital currency will again rally to the upper end of the range. Therefore, we suggest buying 50% of the desired allocation close to $0.00050 levels. Remaining 50% of the position should be purchased once the digital currency breaks out of $0.00068. The profit objective is a rally to the upper end of the range at $0.0016. The trade should be closed if the virtual currency breaks down and sustains below the lower end of the range. This is a long-term trade.
Trade Recommendation: Waves
This is a long term trade. The market gives us a new swing high which can be used for placing buy orders. This high is above SMA100 and if the price breaks this level, it will be a good trend reversal signal. We should expect for a new uptrend. MACD lines support upward movement and DMI allows opening long trades. It looks like a good buy opportunity. Entry level is 0.000950 with stop orders at 0.000360 level. Profit targets should be at 0.001400 and 0.002200 resistance levels. The part of trade volume can be left for new highs. If you don’t use leverage, trading volume for this trade is up to 10% from your deposit.
Profit Targets: 0.001400 and 0.002200
The trading signal is based on Bittrex chart.
Disclaimer: The analyst does not have investments in Waves.
- Technical Analysis: Bitcoin Up Again as Altcoins Mixed in Volatile Trading December 15, 2017
- Trade Recommendation: MaidSafeCoin/Bitcoin Bounce Play December 15, 2017
- Trading recommendation: Lisk/Bitcoin December 15, 2017
- Trade Recommendation: Waves December 15, 2017
- Trade Recommendation: Bitcoin Gold December 15, 2017
- Trade Recommendation – Waves/BTC December 15, 2017
- ICO Analysis: Deepbrain Chain December 15, 2017
- Asian Market Update – Friday: Coins mixed; Asian stocks tumble as investors assess Fed, ECB decisions December 15, 2017
- Cryptocurrency Analysis: Ripple Continues Rampage as Litecoin and Ethereum Enter Correction December 14, 2017
- Trade Recommendation: XMR/BTC Pair Throwback December 14, 2017
A part of CCN
Analysis6 days ago
Long-Term Cryptocurrency Analysis: Look Out Below?
Recommendations1 week ago
Trade Recommendation: Litecoin
Cryptocurrencies6 days ago
Trade Recommendation: Zcash
Cryptocurrencies4 days ago
Trade Recommendation: Bitcoin Cash
Cryptocurrencies1 week ago
Trade Recommendation: Stellar
Analysis4 days ago
Technical Analysis: Litecoin Continues Surge as Bitcoin Tests Highs
Cryptocurrencies1 week ago
Trade Recommendation: Ethereum Classic
Cryptocurrencies1 week ago
Trade Recommendation: Neo