Bitshares/Bitcoin: Long-Term Buy
Bitshares/Bitcoin, Daily Chart Analysis
We have been monitoring the correction in the coin for the past three weeks, and now Bitshares is on the verge of breaking the declining trendline that has been dominating the move. The currency is one of the first smaller coins to show strength since last week’s move and we expect at least a break-out above 0.00010 and test of the 0.00012 level (where we would reduce the initial position) in the coming period, with a possible move to 0.00014 and a test of the highs below 0.00018. The MACD seems to be forming a bottom near the 0 level, pointing to a resumption of the advancing trend. Stop losses could be set slightly below the 0.00008 level compared to Bitcoin.
We advise relatively small positions in the coin given the volatility in the smaller coins, and the wide stop-loss, with the still correction ETH and BTC also creating a risk of a more consolidation. That said the risk reward ratio looks attractive and long-term investors should add to their positions if the coin re-tests the 0.00008 level (which coincides with the 61.2% Fibonacci retracement of the recent move) in the coming days. The coin could be a good buying opportunity compared to the USD, where we expect an initial rally above the $0.30 level.
Featured image from Wikimedia Commons
Technical Analysis: Ripple Breaks Out Amid Ethereum Upgrade
The major cryptocurrencies are on the rise once again today, with Ethereum’s major Byzantium update being in the center of attention. The second largest blockchain network has been updated through a hard fork, as usual, and the successful lock-in led to an initial surge in the price of the ETH token. The digital currency recovered above the $330 level after Sunday’s pull-back, but so far it failed to durably break-out above the prior swing high just above $340.
With the long-term momentum readings still being neutral, the coin could be on the verge of testing the $380 resistance soon, with the all-time high near $400 being the last major technical obstacle. Below $330 further support is found at $300 and $285.
ETH/USD, Daily Chart Analysis
Bitcoin is also on the rise after dipping below $5500 during the weekend, and the most valuable coin is joined in the rally by Ripple, which most likely finished its short-term correction and could be ready for another leg higher. The other majors are also generally higher, with NEO and IOTA being ahead of the pack, while the rest of the market trading near unchanged. As the broad rally seems to be well and alive, let’s see how the short-term charts are shaping up.
Ethereum Gets an Upgrade
Digital currency Ethereum successfully upgraded to the Byzantium protocol on Monday, signaling that the larger Metropolis project is proceeding on track.
Ethereum Hard Fork
Ethereum’s developer community has indicated that the recent software upgrade is running smoothly so far. The fifth hard fork in the Ethereum blockchain officially occurred at 05:22 UTC, about 45 minutes earlier than previously estimated. The upgrade was scheduled for block 4,370,000.
Debates about the merits of the proposed changes were few and far between, with developers generally optimistic about the new protocol. Last-minute bugs, including a DoS vulnerability, appear to have been adequately addressed by Ethereum’s software developers.
Byzantium is the first leg of the Metropolis upgrade, which is the third phase of the Ethereum development project. It was also the first major upgrade since ether’s value skyrocketed. This made developers even more cautious about safeguarding the value of the token without stoking am unexpected chain split.
As we’ve explained previously, hard forks are a boon to ether prices due to the positive impact of the upgrade on the developer community. Ethereum has emerged not only as a store of value for investors seeking alternative assets, but a platform for entrepreneurs to launch their own digital currencies. The vast majority of the projects listed on Hacked.com’s ICO Ratings page have beem built on the Ethereum network. This trend is expected to continue as more startups embrace the platform’s technical specifications in pursuit of their own digital currency. ICOs have raised billions this year, despite regulatory crackdowns globally.
Ether continues to trade above $340.00 following the hard fork. The token has been well supported over the past week, with the broader cryptocurrency market following bitcoin’s lead.
The next phase of the Metropolis rollout is Constantinople. However, no date for its implementation has been specified.
Featured image courtesy of Shutterstock
Trade Recommendation: Waves
This trading idea is based on a bullish divergence. It’s a trend reversal signal near the 0.000650 support level. The price diverges with the MACD histogram and RSI.
The MACD lines support upward movement. DMI allows to open long trades. We have buy opportunity. Pending orders should be placed at the 0.000760 level with stop orders at the 0.000620 level. Profit targets are 0.001000 and 0.001300 levels. If you don’t use leverage, the recommended trading volume for this trade is up to 10% from your deposit.
Profit Targets: 0.001000 and 0.001300
The trading signal is based on Bittrex chart.
- ICO Analysis: Bloom October 17, 2017
- Daily Analysis: Volatility Near Record Low 30 Years After Black Monday October 16, 2017
- Technical Analysis: Ripple Breaks Out Amid Ethereum Upgrade October 16, 2017
- Jamie Dimon May Hate Bitcoin, but J.P. Morgan Is Embracing Blockchain October 16, 2017
- Ethereum Gets an Upgrade October 16, 2017
- Trade Recommendation: EURJPY October 16, 2017
- Trade Recommendation: Waves October 16, 2017
- A Surprise Turn to the Right October 16, 2017
- Asian Market Update – Monday: Asian Shares Point Higher Ahead of a Big Week in China October 16, 2017
- It’s Decision Day for Catalonia’s President October 16, 2017
Ethereum1 week ago
Ethereum’s Hard Fork Is Coming
Analysis1 week ago
Long-Term Cryptocurrency Analysis: Coins Consolidate But Uptrend Still Dominant
Analysis5 days ago
Analysis: Bitcoin Price at $5200, How Much is There Left in the Tank?
ICO1 week ago
ICO Analysis: TripAlly
Analysis3 days ago
Technical Analysis: Ethereum, Monero, and Litecoin Jump as Bitcoin Goes Parabolic
ICO1 week ago
ICO Analysis: PayPie
Cryptocurrencies5 days ago
Trade Recommendation: Monero
Analysis4 days ago
Technical Analysis: Litecoin Follows Bitcoin Higher as Market Tops $165 billion