Analysis
Crypto Update: Another Bounce Fails as Ethereum and Ripple Still Weigh
Strong selling pressure continues to dominate the cryptocurrency segment, with the two largest altcoins Ethereum and Ripple leading the way lower, trading on new lows after the weak bounce of the last couple of days. All of the majors are sporting steep losses, with none of the top 50 coins being in the green, but Bitcoin continues to hold up relatively well in the rout, still hovering above the key support zone near $7650.
BTC/USD, 4-Hour Chart Analysis
BTC is clearly in a short-term uptrend, but for now, the bearish momentum is weakening, and the coin is right at the recent swing low, while the weaker majors already violated that level. Despite the relative strength, the coin hasn’t given a short-term buy signal, and traders and investors should still wait with new positions in BTC.
ETH/USD, 4-Hour Chart Analysis
Ethereum is the most important laggard in the segment, as the coin couldn’t find footing since the reports regarding the Google ad-ban, with the price of the token breaching the February low today.
Primary support is now at $500, and the coin faces strong resistance near $575 and $625 even before the key $740-$780 zone. Short-term traders should still stay away from entering new positions, with the strong downtrend being intact, while long-term investors could add to their holdings here.
Altcoins Still Looking Bleak as Several Majors Hit New Lows
LTC/USD, 4-Hour Chart Analysis
Litecoin is still among the few relatively strong coins, although Monero, ETC, Bitcoin Cash, and IOTA are also showing some stability amid the broad selloff, holding up above or at the weekly lows.
LTC is trading just above the $150 support level, which also mark the Thursday swing low, and the positive momentum divergence continues to be present. That said, the coin is still only neutral forma short-term perspective and traders should still wait before entering the market, with strong resistance ahead between $170 and $180.
NEO, Ripple, Cardano, Stellar, and Dash are all among the weaker majors, violating the recent lows of the downswing, although Ripple is only marginally below the key level and a quick recovery would be an early bullish sign.
As the downswing matures, traders should look for an increasing number of coins showing positive signs before speculating on a reversal, as there are still plenty of coins dragging the segment lower.
We will take a look at the long-term prospects of the majors following the selloff later on this weekend.
Featured image from Shutterstock
Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.
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Analysis
Crypto Update: Ethereum Tops $550 as Altcoins Hit New Rally Highs
The major coins are having another bullish day after a consolidation period with all of the top 10 cryptocurrencies sporting meaningful gains. Altcoins are leading the charge higher, as the switch in relative strength that we pointed out several times seems to be a lasting phenomenon, with the ETH/BTC pair confirming a short-term uptrend.
BTC/USD, 4-Hour Chart Analysis
Bitcoin is also up today, but while the majority of altcoins are trading on new rally highs, BTC is stuck below the prior swing high at $8400, which is also a previously established resistance level. The dominant declining trendline is also in that area, and that strong zone could hold back the largest coin for a longer period. A breakout would confirm a new rising short-term trend, with the next major resistance zone ahead between $9000 and $9200.
ETH/USD, 4-Hour Chart Analysis
Ethereum is among the strongest coins short-term, and with smaller cap altcoins also joining the rally, the whole segment could be ready for a move higher. That said, the broader declining trend is still intact with the coin trading in a strong resistance zone between $555 and $575. A new short-term uptrend is now confirmed but with the declining trendline just ahead, the coin could be in for volatile swings in the coming days. The next target zone is at $625, while support is found at $500 and $450.
Broad Altcoin Rally Lifts All Ships
XRP/USD, 4-Hour Chart Analysis
Ripple, which was among the weakest majors for a prolonged period is one of the leaders today, climbing above $0.75, and eyeing the next major level at $0.84, with tbe coin already being above the previously dominant declining trendline.
On a slightly negative note, correlations are still high between the majors, but there are standout performers despite the concerted rally. Among the long-term leaders, Litecoin is trading near $150, while Monero added to yesterday’s gains, and it’s testing the $240 resistance as we speak.
The early leaders of the rally are slightly lagging in the current short-term swing, but that is likely a sign of rotation, as the likes of EOS, NEO, and IOTA are also higher today, while holding up wrll above the correction lows.
With all of the majors on buy signals in our trend model, we expect the rally to continue even as strong resistance zones are ahead and the road will likely be bumpy after the steep and lengthy downswing.
Featured image from Shutterstock
Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.
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4.5 stars on average, based on 224 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.
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Analysis
Rally Fades in Stocks as Apple Weighs on Nasdaq
We warned yesterday that stock markets got vulnerable as the major US indices reached short-term overbought readings, and after a choppy Wednesday session, equities turned lower today in early trading. Apple fell by more than 2% in early trading on a supplier report regarding declining orders from the smartphone giant, and the sliding stock dragged the tech segment lower.
S&P 500 Futures, 4-Hour Chart Analysis
While the short-term technical picture deteriorated, the losses are muted so far, and the rising short-term trendlines are holding up. Volatility ticked higher, with the VIX bouncing off its two-month lows, but the index is well below the levels seen in the beginning of the month, as Syria-related fears continued to ease and the Chinese-US trade spat also took the back seat in the mainstream media.
DAX, 4-Hour Chart Analysis
Stocks finished broadly lower in Europe, while Asian equities reversed their early gains, with trading volumes still being low across the board. The economic calendar was almost empty today, with only the much worse than expected British retail sales figure adding to the string of negative surprises coming out form the UK this week. In the US, the Philly Fed index came in higher than expected, while weekly jobless claims were in line with expectations.
Dollar Stable as Short Yields Hit New Highs
2-Year Treasury Yields, 4-Hour Chart Analysis
Treasury yields resumed their rise in the quiet environment, and as the short end of the curve continues to outperform the flattening of the yield curve continues in earnest. While forex markets are still mostly flat, the Dollar is drifting higher against most of its peers in US trading.
AUD/USD, 4-Hour Chart Analysis
Commodity-related currencies are little changed, although both the Aussie and the Canadian Dollar are off their recent highs, and should they roll over, the bullish case would receive another hit. Despite the weakening of the risk rally, crude oil continues to hit multi-year highs, with the WTI contract getting close to the $70 per dollar level today. Gold fell back below $1350, as the choppy consolidation pattern is still intact, and the slight risk-off shift wasn’t enough to trigger meaningful safe-haven flows.
Featured image from Shutterstock
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Analysis
More Chance to Go Up for Litecoin
Litecoin short term outlook is quite positive, while in a longer term, it’s somewhat mixed. Shortly, the digital coin may face a very strong resistance at $141, being currently priced at $140. As Dmitriy Gurkovskiy, Chief Analyst at RoboForex, says, Litecoin already tried to test this level earlier this week, but did not succeed.
In the mid-term Litecoin is trying to break out the current range, and in case it finally manages to break out $141 and stay above, it may go up to $168. Before reaching this target, however, another downtrend may be formed, with Litecoin plunging to the support at $114 again. If the bears succeed in breaking out this level, too, another sell-off target will be at $87.
Current outlook, however, is mostly positive, with the key support being at $114 and the key resistances at $141 and $168. The MACD on D1 is in its negatives, but is going up, issuing a buy signal, while the Stochastic is in the positive area and confirms its buy signal, already issued some time ago.
Fundamentally, Litecoin has got much support this week. The market started buying out the coin once the news on the token being listed at Korbit appeared. As the recent reports say, the crypto started being traded on Korbit yesterday, while withdrawal should be available starting today, Apr 19. This is important for Litecoin: first, Korbit is one of the oldest and most reliable exchanges in Korea; second, as we have already stated a few times, if the crypto becomes widespread across multiple exchanges, its liquidity gets boosted, while the accessibility simplifies the transaction processes.
Korbit decided to hold a contest, with the top 6 LTC/KRW traders getting prizes in Litecoin (the winner gets LTC 50, the runner-up will walk away with LTC 25). Meanwhile, Litecoin being available on Korbit also helped the crypto to rise on Bitfinex.
Currently, Litecoin is one of the most volatile currencies, mostly because of it always being in the news, which does good to its promotion. As such, it was announced a few days ago that LTC would be used as a payment method, and TenX already started developing a prepaid card for that purpose.
By: Dmitriy Gurkovskiy, Chief Analyst at RoboForex
Disclaimer
Any predictions contained herein are based on the authors' particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
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5 stars on average, based on 1 rated postsI have two degrees in Social Psychology and Economy. After graduation I worked as the Head of the Laboratory of Technical and Fundamental Analysis of Financial Markets at The International Institute for Applied Systems Analysis. The experience and skills he gained helped me to realize my potential as an analyst-trader and a portfolio manager in an investment company. At the moment I'm a financial expert, writing for various financial media sources and a Chief Analyst at RoboMarkets.
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