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Crypto Update: Volatility Declines as Coins Drift Lower

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The major cryptocurrencies are having a relatively quiet and bearish session so far, with still meaningful divergences between the stronger and weaker coins. As the US markets closed today in recognition of George H. Bush’s passing away, trading activity is expected to remain lower than average in the segment, especially following the volatility contraction of the recent period.

The overall picture in the market is still clearly negative, and although the relatively stronger coins remain well above their bear market lows, even a short-term trend change is far away, with the short-term swing highs from last week being out of reach, for now.

That said, current stability could still point to an ongoing bottoming process following the collapse in November, but traders and investors should remain defensive here, and only consider ultra-short-term positions, with strict risk management.

BTC/USD, 4-Hour Chart Analysis

Bitcoin settled down below the key $4000-$4050 zone following yesterday’s rally attempt, and although the volatility in the coin’s market is very low, the lack of bullish momentum is still a worrying sign for investors. Even considering the weakness of the past week, BTC remains among the relatively stronger coins, but as the prior swing high is well above the current price level, the short-term buy signal in our trend model is in danger.

Also, the long-term sell signal is clearly in place, and with that in mind, traders should remain defensive here, with strong support still found near $3600 and $3000, while above the primary zone, further strong resistance is ahead near $4450 and between $5000 and $5100.

ETH/USD, 4-Hour Chart Analysis

While Ethereum is still holding up above, the key $95-$100 support zone and the prior bear market low, the battered coin remains under clear selling pressure, with even the primary resistance level near $120 being out of reach for bulls.

That said, given the oversold long-term picture, the short-term trend signal remains neutral, and there is still hope that we are seeing a bottoming process in ETH.  A recovery above $120 could still trigger a larger scale correction, with further resistance above $120 is ahead near $130, $150, and $160.

Monero Stuck Below $60 as Litecoin Fails to Retain Relative Strength

XMR/USDT, 4-Hour Chart Analysis

Although Monero is holding up slightly above its prior bear market low, it is still showing technical weakness, even though it’s better off than the current bearish leaders. The coin is struggling to get back above the crucial long-term support/resistance zone near $60, and although it is clearly oversold from a broader perspective, bearish forces remain dominant on all time-frames. Above $60, further resistance is ahead near $65 and $80, while support is now found at $53, $50, and $45.

XRP/USDT, 4-Hour Chart Analysis

Ripple continues to be weak from a short-term perspective, and it failed to recover above the $0.3550 resistance, with the November lows being very close to the current price level. Further resistance is ahead near, $0.3750, and $0.40, with the key long-term $0.42-$0.46 also towering ahead of the coin, and even as the long-term setup remains way more positive than in the case of the other majors, our trend model is on a clear short-term sell signal, with support levels found near $0.32 and $0.30.

Litecoin/USD, 4-Hour Chart Analysis

Litecoin is trading very close to at the key support zone between $30 and $30.50, and together with Bitcoin, it’s very close to getting downgraded in our trend model, as it failed to retain its recent relative strength.

The coin’s current weakness is a negative sign for the whole segment, since there is still no sign of a developing bullish leadership.  LTC is facing resistance near $34.50 and $38 while below the primary zone, further support is found near $26.

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.

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.

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4.7 stars on average, based on 420 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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Altcoins

EOS Price Analysis: EOS is Set Up for Bigger Gains, Following Recent Technical Development

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  • EOS has jumped around 45% between the sessions of 15th – 17th December. 
  • Bulls shrug off all negative related news flow that has surrounded EOS in recent weeks.

The EOS/USD bulls are on a serious mission to recovery. Unlike several of its peers, a slowdown in momentum has not been seen with the EOS price. More importantly, a breakout has been observed from a range-block, of which EOS/USD was confine within. This had been the case since the 7th December, managing to escape however on 17th and capitalize further on that.

EOS Shakes off Negative Commentary

Over the past few weeks, there have been several negative bits of news flow. Recently, as covered by Hacked in a prior article, the Cardano founder, Charles Hoskinson, had a fair few words to say about EOS. He had noted that action from regulators was potentially right around the corner for EOS. Hoskinson had specifically raised concerns about the EOS token sale.

Elsewhere, it was recently covered by Chinese press that EOS decentralized apps (DApps) have been victim to hacks totaling around $1 million since July. The report cited data which was collected by PeckShield, who are a blockchain security organization. This suggests that the DApps on EOS have been hit by at least 27 breaches from July up to late November. This is an amount of 400,000 EOS, equivalent to 8 million yuan, at the time of the published report.

Lastly, at the back-end of last month, there was some FUD surrounding the CTO of Block.one, Daniel Larimer. The community and social media space were concerned about Larimer working on new projects. This prompted worries that he may be leaving EOS, keeping in mind the EOS mainnet hadn’t even reached a year.

EOS has pretty much shrugged much of this FUD off, as seen with this latest rally. It has far outperformed its peers with the big gains collected over the past two sessions.

Technical Review EOS/USD

EOS/USD daily chart

EOS/USD had a decent extension to the upside after breaching the confinements of the detailed range-block.  The bulls initially jumped a chunky 45% over the period of 15th to the 17th December. However, into the session on Tuesday, the price has run into some minor resistance, seen at the 4th December high area. This can be noted within $2.60 territory.

The pullback being observed at the time of writing isn’t too much of a surprise, given the burst higher in such a short time frame. Profit-taking is only natural in this case. It is a minor retreat ahead of further potential moves north. Eyes will be on the breached range-block for support, the top of that seen at $2.18.

Should the bulls gather enough momentum for a push above the minor near-term resistance seen, then a fast 60% move could be seen. This would take EOS/USD back towards $4.40, where another minor supply zone is observed. Further north, a reclaim of the pre-November fall levels, i.e., $6 territory, is the next major target.

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.

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4.5 stars on average, based on 88 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.




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Analysis

Crypto Update: Ripple and Litecoin Lead Another Rally Attempt

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The last 48 hours saw a nice bounce in the cryptocurrency segment, which led to improvements in the short-term technical setup of some of the most oversold coins. While the rally, which is being spearheaded by Litecoin and Ripple, hasn’t changed the still overwhelmingly bearish long-term picture, it could be the start of a larger scale counter-trend move. We will take a closer look at the broader picture in our long-term cryptocurrency analysis, which will be released tomorrow.

The deeply oversold long-term momentum readings and the horrible sentiment in the segment could fuel a more sustained move, but until we have confirmation that the short-term trend change in the key coins, traders and investors should remain defensive even towards the relatively stronger coins.

The strongest coins should form a pattern of higher highs and higher lows before entering new positions, and for now, our trend model only shows neutral short-term readings even in the case of the leaders, and most of the coins are still on sell signals on both time-frames.

BTC/USD, 4-Hour Chart Analysis

Bitcoin hit marginal new bear market lows before bouncing higher yesterday, and although the coin got close to the $3600 level, it remains in a bearish technical setup, and our trend model is still on sell signals on both time-frames.

That said, a move above primary resistance could set up a failed breakdown pattern, which could trigger a larger scale correction, but for now, traders and investors shouldn’t enter positions here. Further strong resistance is ahead between $4000 and $4050, while support is found near $3250 and $3000.

ETH/USD, 4-Hour Chart Analysis

Ethereum also remains on sell signals on both time-frames despite the rally attempt, as it continues to be stuck below the key $95-$100 resistance zone. The coin is still deeply oversold from a long-term standpoint, but until a confirmed short-term trend change, odds still favor new lows in the coming weeks, and traders should stay away from Ethereum here. Further strong resistance is ahead near $120 and $120, while the next major support zone is found between $73 and $75.

Bullish Leadership Finally Forming Among Altcoins?

LTC/USD, 4-Hour Chart Analysis

Litecoin spiked as high as the $30-$30.50 support/resistance zone on Monday after breaking out above the $26 resistance level and it also broke the steep short-term downtrend line. Should the coin form a higher swing while remaining above $26, a short-term trend change would be confirmed, but for now, given the clearly bearish long-term picture, traders should wait before entering the coin’s market. Below $26, key support is found between $23 and $23.50 while the next major resistance level is ahead at $34.50.

XRP/USDT, 4-Hour Chart Analysis

Ripple is on a similar technical position to Litecoin, as although the sharp bounce took the coin above both the $0.30 and $0.32 resistance levels after hitting marginal new lows, a short-term trend change is not yet confirmed.

The coin needs to form a higher swing low and stay durably above $0.32 for an upgrade to buy in our trend model, and for now the long-term sell signal remains clearly in place, with the next major resistance zone is found near $0.3550.

XMR/USDT, 4-Hour Chart Analysis

On a negative note, only a few coins show clear technical improvements thanks to the rally attempt, and the likes of Monero, DASH, Stellar, NEO, and ETC only registered weak bounces and even in the case of the surging EOS and IOTA, the gains were only enough to regain a fraction of the recent losses.

So, while a short-term trend change could be ahead after the rout, traders should remain cautious until a clear bullish leadership is established in the segment.

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.

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4.7 stars on average, based on 420 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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Ethereum Price Analysis: ETH/USD Not Out of the Woods Yet

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  • ETH/USD odds are still stacked against the bulls for now, as price remains within range-block.
  • Ethereum co-founder Vitalik Buterin, says his creation is becoming more and more decentralized.

ETH/USD has enjoyed a chunky bull run over the past three sessions, with that slowing down Tuesday. Between the 15th – 17th December, the price had gained a chunky 23%. ETH/USD hit its highest level seen since 9th December. It appears the bulls, however, have run into a near-term barrier. ETH has been moving within a range-block from 7th December, which is still the case. The momentum so far not proving to be enough to take the price through for now.

Ethereum More Decentralized – Vitalik Buterin

The co-founder of Ethereum, Vitalik Buterin, discussed how the network is becoming more decentralized of late. He was recently speaking in an interview with Blockchain Insider.

Buterin believes that a change is starting to be seen in terms of the further decentralization of the Ethereum blockchain. He believed that it was much too centralized around himself. He further affirmed the observations over the last 12 months of governance actions, which were he suggested were responsible for this.

The Ethereum creator said, “Number one, like a lot of the features in the Constantinople hard fork, that are launching in January, basically happened without me. Number two, issuance reduction from 3 ether to 2 ether which is going into Constantinople, I was not involved at all.”

Only just some days ago, a team lead within the Ethereum development circle, Péter Szilágyi, confirmed the scheduled update. This was covered by Hacked in a prior article. He had noted the upgrade is to start around 16th January 2019.

Ethereum 1.X Update

Focus outside of the Constantinople hard fork is on Ethereum 1.X. This will be a new developed update, which is anticipated to take place during June 2019 provided there are no delays.

Buterin said, “Ethereum 1.x, short-term scalability improvements that are going on to the main chain, before we can switch over to sharding. That whole effort started without my involvement at all.” The update is supposedly a replacement of the EVM – Ethereum Virtual Machine.

Technical Review – ETH/USD

ETH/USD daily chart

As detailed earlier, ETH/USD has been moving within a range-block. The upper part of this recent range appears to have slowed down the bulls. The key levels to this block for now, seen at $101 to the upside, and $83.45 to the downside. It is as simple as depending on which area is broken that shall determine the fate of the trend.

Despite the enormous jump of around 16% for ETH/USD, the fact of the matter is the odds are still stacked against the bulls. This being the case so long as the price remains confined within the detailed formation above.

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.

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4.5 stars on average, based on 88 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.




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