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Analysis

The Bottom is Here? Bitcoin Price Hits $3000 then Storms to $3600

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Yesterday’s crash continued unabated today, and it reached epic proportions as investors dumped all the major coins with both hands, before several Chinese exchanges (like OKcoin, Huobi) confirmed their (only) partial closure. The prior panic selling drove BTC below the $3150 support, then $3000 and the June all-time highs. With the coin losing more than 40% top-to-bottom the end of the decline could be very close and the first major rally already started today, as Bitcoin’s price catapulted to $3600 very quickly and altcoin prices also soared off their panic lows.

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While we couldn’t be sure that a major bottom is already formed, and a re-test usually comes after such a move, investors now should be buying the short-term dips. The deep correction that we expected cleared the overbought readings of the prior monster rally, and sentiment is getting bearish enough for at least a tradable rally.

BTC/USD, 4-Hour Chart Analysis

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The other major coins were hit even harder amid the broad liquidation, and the total market capitalization of the segment crashed below $100 billion, marking a loss of $80 billion in two weeks. Ethereum got close to the $200 (-50% off the all-time high) level, Litecoin spiked to $35 for an almost 60% plunge, while Ripple touched the $0.15 level. The selling pressure reached yesterday’s relatively strong coins as well, as IOTA fell below primary support, while Monero also declined by 20+%. As the market might be at a major turning point, let’s look at the short-term charts before the weekend.

Ethereum

ETH/USD, 4-Hour Chart Analysis

ETH followed BTC higher off the panic lows, and got back to the next major $235-$250 support/resistance level. The coin is getting long-term oversold, and today’s low could mark the end of the correction, although a re-test of the lows is possible. Investors should now be adding to their positions on the short-term dips. Support is found near $200 and around $175, while resistance is ahead at $280 and $300.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin spiked below $50, but it’s now back near the crucial level, after it briefly tested the long-term base formation near $35. The coin is very likely hit a panic bottom today and although more sideways action is probably ahead, the short-term dips should be bought by investors, while traders should wait for a confirmed trend change in the volatile environment.  Support is still found at $47, $44, and $38 while resistance is ahead at $56, and $64.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash held up well during the crash, but it still got close to the $220 level and the prior highs, after dipping below the $265 support. The coin is now back above the key level, but we expect more volatility and a possible re-test of the lows before a sustained move higher. That said, the long-term picture is encouraging, and investors should be looking for buying opportunities during the bottoming process. Strong support is still found near $220, with resistance ahead near $300.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP found support in the long-term base formation and it is now back near the top of the pattern at the $0.18 resistance. The declining short-term is still intact, but the coin could be among the first coins to head higher after the end of the correction, and long-term investors should still add to their positions here. Support is still found at $0.16, while resistance is ahead at $0.18, around the $0.20 level, and near $0.22.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic experienced liquidation below the key $13.50 level, and it plunged to the next long-term support near $9 on huge volume. The coin has to get back above the prior support level, or it will remain in a declining long-term trend. Until the recovery, short-term traders should wait with opening new positions, but the current levels are still attractive for long-term investors.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero remained relatively strong amid the sell-off and it is trading back above the $80 support, after spiking below the key level today in early trading. While volatility is still expected to remain high, today’s low is likely the final bottom of the correction and investors could already add to their holdings. Resistance is ahead at 4100, $125, and near the all-time high above $150, while support is at $80 and $68.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO hit the support level near $13 before the strong rebound, and it recovered above the $16.50 support/resistance. Today’s bottom is likely to be a tradable one after the crash. We expect only brief moves below $16.50, and investors should be adding to their positions now. Short-term traders should still wait until a new uptrend is established as volatility will likely remain high. Resistance levels are ahead at $22, $25, and $30, while support is a found at $13, and $11.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA held above the $0.35 level as we expected, and it is now trading above the line-in-the send support zone between the $0.45 and $0.48 levels, confirming the short-term relative strength of the coin. The declining trend is still intact in the coin, but the long-term picture is encouraging and investors could still add to their positions. Resistance is still ahead near $0.65, with key support at $0.35.

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3 Comments

3 Comments

  1. Chris G

    September 15, 2017 at 5:53 pm

    thanks mate

  2. [email protected]

    September 15, 2017 at 6:51 pm

    Is it safe to say that near the $3200 level of BTC, purchase of other Altcoin can be made for short-term trade ?

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Analysis

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

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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.

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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

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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.

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Analysis

Technical Analysis: Litecoin and NEO Jump as Bitcoin Trades near $8000

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The cryptocurrency segment continued its bullish run, as the total value of the coins climbed above $230 billion for the first time ever, while Bitcoin also posted marginal new highs. The most valuable currency is still overbought regarding the long-term picture, and we continue to expect a deeper correction in the coming period, despite the recent strong rally. Support levels are still found $7700, $7000, and $6700 while the $8000 level is ahead as a major obstacle.

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BTC/USD, 4-Hour Chart Analysis

Litecoin has been the most active major besides Bitcoin, as it rallied strongly after breaking out above the key $64 resistance and it breached the next target at $75 before heading below $70 again. The coin remains in bullish long- and short-term patterns, and we expect a move above the major resistance zone ahead with the next target found at $82.50.

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Litecoin/USD, 4-Hour Chart Analysis

NEO is showing strength in the second half of the session, while Monero is recovering well from a short-term dip, similarly to IOTA and Ethereum Classic. Ethereum continues to represent stability in the segment, while Ripple failed to build up momentum so far after yesterdays spike higher. With still most of the altcoins being in bullish setups, let’s see the short-term charts.

(more…)

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Analysis

XRP Looking to Make a Significant Rally

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The XRP/USD pair went into a deep correction after hitting 0.29490 a month ago. It nosedived to the major support level of 0.19052. The pair consolidated for a few weeks which gave the market the legs to test resistance at 0.22924.

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Technical indicators show that the pair was ready to breach its immediate resistance, which it did this morning. Now that resistance has broke at 0.22924, it’s time to buy. This successful breakout will take the pair to 0.23997 first and 0.26563 next before hitting the target of 0.26796 which is coincidentally a major resistance level.

Technical indicators hint that the market would most likely be overbought by the time it hits 0.26796. Should it respect the major resistance level, the likelihood of the market turning extremely bearish increases. Therefore, it is recommended to closely watch your trail stops to preserve your gains.  

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Summary of Strategy

Buy: As close to 0.22924

Support: 0.22224 and 0.20081

Target: 0.26796

Stop: If the market breaches 0.20081 as next reliable support is 0.19052

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

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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.



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