Analysis Crypto Capitulation Is Upon Us Published 8 months ago on March 15, 2018 By James Waggoner Capitulation: kuh-pich-uh-LEY-shuhn (noun) the action of surrendering or ceasing to resist. From their December peak, cryptocurrency assets have given back over $400 billion. This amounts to more than the GDP of many countries. If this were values lost in the stock market whose worth is in the trillions, it would be called a minor correction. In crypto terms there is only one word to describe the carnage: capitulation. As painful as it is, the point to be made here is the capitulation is a good thing. Read on and I will share some thoughts for you to consider. Mass Media Mania First let’s take a look at some of the news that is causing such despair. Most recently the selling mania has been in response first to Facebook and more recently to Google. Both of these mass social media giants have ban cryptocurrency advertising. Read closely and you won’t be shocked to realize that the target of their ire are the many ICOs. The problem is not that Facebook and Google are the only advertising platforms. The problem is that they are considered mainstream media and without these two, the trend of cryptocurrencies gaining legitimacy is delayed. That is right, I said delayed not blocked or prevented. The World Has Changed Five years ago, when bitcoin was unknown to most people, this might have been a fatal move. Today is a different story. I recently traveled to a remote mountain town in the interior of Mexico. Everyone I met had heard about Bitcoin and eyes lit up with excitement when I ask if I could pay for lunch with bitcoin. Today are dozens of websites dedicated to cryptocurrencies, either holding them, exchanging them or just writing about them. Probably the most effective advertising remains on Google, it is called Google Search and it is free. If someone wants to learn about owning bitcoin or any other currency, there is a ton of educational information. Of course it would be far better all around if Mark Zuckerberg and Eric Schmidt had taken a different approach such as banning only advertisements for ICOs, but that didn’t happen so supporters of crypto aren’t comforted in their beliefs that bitcoin is going mainstream in 2018. The Flipside Is Being Ignored Every argument has a flip side. If the removal of ads contributes to cleaning up ICO scams, that is a good thing. We can all agree on that point. And let’s be honest there is more than one problem the crypto community needs to clean up. This adds to the ongoing regulatory news including March 7th ruling in US Federal District Court that cryptocurrencies are commodities. As such they can be regulated by the Commodity Futures Trading Commission (CTFC). On the same day the Securities & Exchange Commission issued the following order: “If a platform offers trading of digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration,” the commission said in its “Statement on Potentially Unlawful Online Platforms for Trading Digital Assets.” Not All Regulation Is Inherently Bad The mere hint of added government regulation typically sends stock market investors heading for the exits and the same holds for investors in crypto. But this raises the question, is some regulation of crypto a good thing? If we examine the full spectrum of regulation to this point on a global scale there is one common target most everywhere. That is the practice of exchanges. So far there has been little or not regulation, threatened or enacted, to protect investors from loss of funds due to security breaches. The question that needs to be ask is this. Will SEC regulation result in better pricing and lower trading costs; if So, then this would provide a desirable outcome. It is understandable if you laugh at the prospect of any government regulation having a beneficial outcome, but if you look at past SEC practices, you would come away with different conclusion. So when the next regulation catches the headlines will it be to ban the existence of bitcoin, Ethereum, Ripple, Litecoin and others or to protect the investor from scams and excess costs? Capitulation Is A Good Sign Over the course of a pretty long investment experience, I have witnessed true misery on more than one occasion. The pain is unbelievable, there is no perspective on the future and all you want is to take action to end the misery. That is when you know the worst is happening and nothing is ever going to make it better. That is when major stock market bottoms are formed. It surely is painful these days for crypto investors. This is a good sign. Featured image courtesy of Shutterstock. Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (26 votes, average: 4.77 out of 5)You need to be a registered member to rate this. Loading... James Waggoner 4.4 stars on average, based on 115 rated postsJames Waggoner is a veteran Wall Street analyst and hedge fund manager who has spent the past few years researching the fintech possibilities of cryptocurrencies. He has a special passion for writing about the future of crypto. Follow @HackedCom Feedback or Requests? Related Topics:bitcoin bubblebitcoin pricesCryprocurrency market capcryptocurrency regulation Up Next Long-Term Bitcoin Analysis: Where is BTC from an Investment Standpoint? Don't Miss Pre-Market: Stocks Bounce Again Overnight but Trend Remains Bearish You may like Cryptocurrencies are “Here to Stay,” According to European Commission Vice President SEC Rejects Nine Bitcoin ETF Applications Coinbase Explores Adding Dozens of Altcoins for Custody, XRP Included Cryptocurrency Exchanges “Crying for Regulation,” According to New Study SEC Delays Ruling on Five Bitcoin ETFs; VanEck/SolidX Proposal Under Discussion Capitol Hill: ‘Crypto Innovation Should Be Fostered, Not Smothered’ 5 Comments 5 Comments BittBurger March 15, 2018 at 7:03 pm Author: Numerous spelling and grammatical errors in the last 2-3 paragraphs you might want to clean up. Im here to help! 🙂 Log in to Reply James Waggoner March 15, 2018 at 7:32 pm where is the edit button? Happy to make changes. Log in to Reply BittBurger March 15, 2018 at 7:33 pm No idea. I’m not an author here. Log in to Reply tommudd March 15, 2018 at 7:41 pm I am ready to rock and roll, lookout market here we come Log in to Reply James Waggoner March 15, 2018 at 7:42 pm I am with you, no pain no gain. Thanks for your comment Log in to Reply You must be logged in to post a comment Login Leave a Reply Cancel replyYou must be logged in to post a comment. Altcoins Cardano Price Analysis: ADA/USDT Smashes Out of Wedge, but Saved by Critical Demand Zone Published 13 hours ago on November 14, 2018 By Ken Chigbo ADA/USDT testing a huge area of demand and a breach by the bears could be catastrophic. Cardano Foundation confirm reshuffle, as Michael Parsons, the former chairman, steps down. ADA/USDT has continued to be victim of downside pressure after its latest bull run. The price had gained a chunky 20%, between 31st October and 6th November. ADA/USDT managed to peak just above $0.08200 territory. This was the highest level seen since 15th October. Shortly after, gradual selling started to take place, to then see all the gains plus much more taken by the heavy bears. It appears current bull runs are not sustainable, very much vulnerable to being sold- particularly as these tend to happen in an explosive manner within a short time frame. Cardano News Flow Cardano this week made an announcement that Michael Parsons, the former chairman, has resigned from his position at the Cardano Foundation. Prior to this rapid departure, there had been much history of community members demanding for him to be removed. The position will be filled by the Council Member Pascal Schmid, a University of St. Gallen graduate and a financial expert. Cardano’s creator, Charles Hoskinson, accused the foundation and Parsons of neglecting their duties, in addition to bringing in close friends and family into top positions within the organization. Technical Review – ADA/USDT ADA/USDT daily chart ADA/USDT is running at three consecutive sessions in the red- a move which is inline with the broader market, a mass cooling across all major cryptocurrencies. The price was forced to drop a hefty 13% in the late part of the session on Wednesday. Price action was initially moving within a wedge pattern. This had been the case since the back end of September. ADA/USDT was contained within this formation. Given the noted heavy selling pressure that was seen across the market late Wednesday, the lower trend line of the wedge was forced to give way to sellers. Looking to the downside, ADA/USDT has been saved from further declines thanks to a critical demand zone. The area is seen tracking from $0.07000 down to $0.06000. It has proven to see strong buyers swoop in. The price last traded down here between 12-18th September. Buyers kicked in to then drive ADA/USDT to the north, seeing gains just shy of some 50%. The bulls were able to run the price up to $0.09500 into a known supply area. A peak was seen, and this rally was then gradually sold. Should the above-mentioned demand area fail to hold and see a daily close below, it could be catastrophic. A development such as described, could leave the door wide open to a fresh wave of heavy selling. 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 (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (0 votes, average: 0.00 out of 5)You need to be a registered member to rate this. Loading... Ken Chigbo 4.5 stars on average, based on 50 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets. Follow @HackedCom Feedback or Requests? Continue Reading Analysis Pre-Market Analysis And Chartbook: Markets Flat Ahead of Key Economic Data Published 16 hours ago on November 14, 2018 By Mate Cser Wednesday Market Snapshot Asset Current Value Daily Change S&P 500 2,729 0.02% DAX 30 11,467 -0.05% WTI Crude Oil 56.16 1.59% GOLD 1,202 -0.03% Bitcoin 6,211 -0.80% EUR/USD 1.1287 -0.01% As traders awaited the key US economic releases of the week, the Consumer Price Index (CPI) and the Retail Sales report, financial markets were relatively quiet and flat before the Wall Street open, but things got volatile since then, despite the muted CPI reading. The progress in the Brexit negotiations and the liquidation event in crude oil were making headlines today, although the advance in the Pound stalled, as equity markets and in general risk assets are still under clear selling pressure following the turmoil in October. The second half of the week will likely see strong moves across asset classes, and given the negative technicals, odds favor a risk-off shift globally. EUR/USD, 4-Hour Chart Analysis The Dollar is consolidation after its move to new 16-months highs on Monday, and for now, the currency failed to confirm the break-out, at least as measured by the Dollar index. The EUR/USD is showing a slightly different picture compared to the broader measure, and the common currency is still in a steep downtrend, even as it is back near the key 1.13 level, retracing a large chunk of Monday’s move. A durable recovery above 1.13 could signal a failed break-down and another consolidation phase in the pair, with the long-term momentum indicators still being oversold, but the broad downtrend is clearly intact, and long positions should only be considered as short-term trades. Nasdaq 100 Futures, 4-Hour Chart Analysis In equities, we continue to see bearish technicals from a broader perspective, and although the post-Fed selloff halted, for now, the re-test of the October lows still seems likely in the coming weeks. The Nasdaq is still relatively weak compared to the other major US benchmarks, and the tech benchmark is the closest to its lows, even after yesterday’s bounce. The overnight session saw a slight bullish bias in stocks, with the indices holding on to above their weekly lows, but we still view the short-term rally attempts as selling opportunities given the hostile technicals across the globe. Crude Oil in Turmoil as Copper Holds Support, For Now WTI Crude Oil, 4-Hour Chart Analysis The bounce that we have been expecting in crude oil didn’t materialize despite the deeply oversold momentum readings, as the dip below the $58-$60 zone triggered a liquidation event in the commodity. The worst day for oil in 3 years saw the WTI contract falling below $55 per barrel, its lowest level in a year. Today, oil is attempting a recovery, and we continue to expect a rally up to the $63-$65 zone in the coming weeks. Copper Futures, 4-Hour Chart Analysis Elsewhere in the commodity segment, we are seeing further signs of weakness, despite the pullback in the Dollar. Gold is having a flat quiet day, so far, hovering near the $1200 price level, while despite the renewed trade-deal optimism, copper failed to bounce higher substantially amid the slight risk-on shift. The industrial metal is trading just above its recent swing low, and a move below that would be a sign that the lengthy consolidation phase is ending and the broader downtrend is about to resume. ChartBook Major Stock Indices S&P 500 Futures, 4-Hour Chart Analysis Dow 30 Futures, 4-Hour Chart Analysis VIX (US Volatility Index), 4-Hour Chart Analysis DAX 30 Index CFD, 4-Hour Chart Analysis FTSE 100 Index CFD, 4-Hour Chart Analysis EuroStoxx50 Index CFD, 4-Hour Chart Analysis Nikkei 225 Futures, 4-Hour Chart Analysis Shanghai Composite Index CFD, 4-Hour Chart Analysis EEM (Emerging Markets ETF), 4-Hour Chart Analysis Forex USD/JPY, 4-Hour Chart Analysis GBP/USD, 4-Hour Chart Analysis EUR/GBP, 4-Hour Chart Analysis AUD/USD, 4-Hour Chart Analysis Commodities Gold Futures, 4-Hour Chart Analysis Featured image from Shutterstock Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (0 votes, average: 0.00 out of 5)You need to be a registered member to rate this. Loading... Mate Cser 4.7 stars on average, based on 394 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market. Follow @HackedCom Feedback or Requests? Continue Reading Analysis EOS Update: Preparing for a Big Bullish Move Published 17 hours ago on November 14, 2018 By Kiril Nikolaev, CFA EOS has been stuck in a range since August 8, 2018. It’s been trading between $6.65 and $4.50 with a midpoint of $5.30. If you’re a day trader, the range is wide enough to exploit and generate serious profits. However, this is not the case for many retail investors who bought the bottom and are anticipating the next big rally. They’d want to know when EOS (EOS/USD) would make another substantial move. The good news is we are certain that it’s soon, very likely within a month. The next question would be the direction. This is something we’ll never be 100% certain of. However, we looked at the charts and we’re confident that this move will usher in a new higher high. In this article, we reveal how this coin is preparing for a big bullish move. Unnerving Lack of Volatility EOS has been slowly flatlining since September 2018. The trading range has become tighter and tighter with each passing week. You can see the almost non-existent volatility in the weekly RSI. The indicator has moved within a three-point range (42 – 45) in the last two months. Weekly RSI range In addition to the weekly RSI, the daily trading range has been suffocating. The last time Bollinger bands were this tight was about a year ago. It was at the point before EOS launched a massive bull run. Daily Chart Before you get excited, we have to be clear that narrow trading ranges do not necessarily foretell a bull run. However, it is a prelude to a big move. It is the proverbial calm before the storm. The storm, we believe, will nourish the bellies of starving bulls. Alleviating Resistance to Support (RS) Flip EOS has a diagonal trendline that cuts through both the bull and bear runs. The trendline started to exist on January 20, 2018 when it acted as resistance and prevented the market from going above $15.75. The first RS flip happened on April 24 when EOS breached resistance of $12.00. This helped the market climb to $23.029 on April 29. The diagonal trendline continued to serve as a support for EOS until June 22 when the market breached support of $9.50. This effectively flipped the support into resistance. EOS worked very hard to take back the diagonal trendline but to no avail. As a result, the market dropped to lows of $4.1778. Diagonal trendline The price action described above illustrates the impact of this trendline. It provides massive resistance when the market is below it. On the other hand, it offers firm support when EOS traded above it. Thus, the market would have been in a bad shape now if bulls would not have put up a strong fight. Luckily, they did. With a series of higher lows, bulls eventually flipped the resistance into support on September 27. They also completed the retest when EOS dropped to $5.0014 on October 11. This tells us that bulls are mobilizing. It looks like they are quietly and patiently accumulating at these levels. Promising Inverted EOS Chart If you’re having trouble believing that EOS is starting to look bullish, then allow us to present to you the inverted chart. One look and you’ll know that this chart is prime for massive shorting. Inverted weekly chart This inverted chart looks like it already topped out. It tried really hard to take out resistance of $3.50 but it failed again and again. Its inability to breach the resistance led to exhaustion. You can see the rally fading in the declining volume. The market persistently rose even if volume steadily decreased. This is not a sustainable ascent. As a result, the market appears to have broken down of an ascending triangle pattern. It is currently retesting the resistance but without volume, it is likely that the market will resume its descent. When it does, EOS will make its big move. Bottom Line With volatility almost non-existent, EOS appears to be preparing for a massive move. While this is something we are certain of, the direction is still not guaranteed. However, the recent RS flip of the diagonal downtrend and the inverted weekly chart make us believe that EOS is gearing up for a big bullish move. Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (0 votes, average: 0.00 out of 5)You need to be a registered member to rate this. Loading... Kiril Nikolaev, CFA 3.7 stars on average, based on 269 rated postsKiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances. Follow @HackedCom Feedback or Requests? Continue Reading Ethereum Price Extends Slide as ETH Mining No Long... Update: Crypto Selloff Deepens as Bitcoin Hits New... Etheera (ETA) Hits the Big Time with 82,960% Growt... 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We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com. Trending Cryptocurrencies6 days ago Why Investors Should Pay Attention to Electroneum Cryptocurrencies1 week ago Why Investors Should Pay Attention to Pundi X Altcoins1 week ago John McAfee Gets Skycoin (SKY) Tattoo; Coin Price Immediately Jumps 12% Cryptocurrencies7 days ago Why Investors Should Pay Attention to Ravencoin (RVN) Opinion1 week ago The Ripple Debate Continues as Coinbase Considers Listing XRP Analysis6 days ago Bitcoin Update: Transition from Depression to Disbelief Altcoins1 week ago Tron Gets Five Fiat Pairs Amid 260% Volume Boost; TRX Price Waiting to Move Altcoins1 week ago Litecoin Price Analysis: $60 and Beyond?