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Analysis

Cryptocurrencies Still in Correction Mode as Volatility Declines

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Ethereum and Bitcoin are still driving the major swings in the crypto market as correlations remain elevated between the majors and the smaller coins. The two giants bounced lower off the crucial resistance zones that we pointed out yesterday, and Ethereum is trading well below $300 while Bitcoin is stuck near $2500 today in early trading.

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Volatility declined since the huge moves of the first couple of days of the week, and we expect more choppy action, as the coins “digest” the violent moves. The short-term downtrends remain intact for now but the previously strong coins like Dash and Antshares continue to show bullish signs amid the broad correction.

Bitcoin

BTC/USD, 4-Hour Chart Analysis

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Bitcoin’s rally stalled near the key $2600 level today, where the declining short-term trendline and a strong support/resistance level are converging. The support zone between $2450 and $2475 continued to hold the currency yesterday, and we expect BTC to remain within the two major zones today as volatility will likely decline further before the next major move, with the rising long-term trendline also providing support in the area.

Ethereum

ETH/USD, 4-Hour Chart Analysis

Ethereum continues to trade near the $300 level on the USD chart, with the 38.2% Fibonacci Retracement also being in the close proximity of the current price, while the $270 level acting as primary support in the current setup. The short-term MACD is showing neutral readings after the strong moves in both directions, and the long-term consolidation pattern continues to dominate the coin, so we expect more, albeit less volatile, corrective price action.

ETH/BTC, 4-Hour Chart Analysis

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin remains technically stronger than the two most valuable coins, still trading above the prior high near $38 following yesterday’s slide. Short-term traders would get a new buy signal above $44, confirming a higher swing low, but for now the picture remains neutral as the declining trendline of the correction is already broken.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash remains the strongest looking major following the bounce, as it held up well during yesterday’s decline, with the $175-$180 zone acting as support all day long. The coin remained above the declining trendline of the correction and a move above $190 would trigger a new short-term buy signal, while traders could also open short-term positions now, with a relatively tight stop below $175. The ongoing correction in Ehtereumand Bitcoin might still weigh on Dash, but a break-out to new highs seems likely int he coming days.

Ripple

XRP/USDT, 4-Hour Chart Analysis

Ripple is still trading in its prior ranges in both the USD and the Bitcoin pair, as the long-term consolidation patterns still dominate trading in the coin.The declining short-term trend is intact, just as in the case of ETH and BTC, and the MACD indicator is neutral on both charts, without XRP showing nor relative weakness or strength here, leaving the technical setup unchanged.

XRP/BTC, 4-Hour Chart Analysis

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Analysis

Technical Analysis: Litecoin and Ethereum on the Move as Rotation Continues

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The altcoin bull run continued today despite the US Thanksgiving holiday, as trading remained active in the majors, and another important break-out occurred, this time in Ethereum. Litecoin is also strong today, and the coin is testing the key $75 resistance level, as it follows in the track of ETH again. The currency still looks set to hit the next target at $82.50, with the all-time highs below just below the $100 level also in sight. While the long-term momentum is edging towards overbought territory, the coin remains bullish on both time-frames, with strong support still found at $64 and $56.

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LTC/USD, 4-Hour Chart Analysis

Ethereum scored a new record high after moving past $400 for the first time in five months, and considering the lengthy consolidation before the move, more upside is likely for the second largest coin. With the long-term momentum still not being overbought, the token’s price might test the $500 mark in this leg higher, with Fibonacci targets ahead at $475 and $512. Support levels are found below $400 at 4380 and $350.

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ETH/USD, 4-Hour Chart Analysis

Ripple is also attempting another bullish move, while Monero and Dash are consolidating just below their recent highs, while IOTA is in a short-term correction pattern as well. More and more altcoins are now in the latter phases of their rallies, just like Bitcoin, but traders still have opportunities with favorable risk-rewards ratios. Let’ see the short-term charts.

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Analysis

Break-Out: Another Crazy Rally in Ethereum?

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What crazy rally you might ask? Bitcoin is the star, right? Everything was about BTC (and BCH) in the last few months, and lots of traders forget the gains that ETH posted amid the take-off of the ICO Rocket during the spring.

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Comparing ETH and BTC in 2017

By the numbers, out of the two largest coins, 2017 is still the year of Ethereum as the 3600% rise in the token’s price dwarfs Bitcoin’s impressive 630% gain. Could Ethereum be on the verge of another epic surge? Before answering that question, first let’s see what happened with the coin in recent months.

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How Did We Get Here?

ETH/USD, Daily Chart Analysis

Ethereum finally broke above the magical $400 barrier that has kept a lid on the token’s price for five months after the crazy run-up in May. What first followed after that stellar move, was a 70% decline top-to-bottom, with a flush-out panic low in July.

Our trend model turned long-term positive even before the spike lower, but since then, the coin only managed to get close to the all-time highs, while Bitcoin eclipsed the previous star with its dominant performance. Now the tide might be turning, as ETH is finally gathering bullish momentum and today it breached the $400 mark, flirting with a break-out from the giant triangle consolidation pattern.

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Altcoins

Zcash Dip Offers Chance to Buy

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The ZEC/USD pair went into a downtrend for several days after hitting the 435 level in June. It shed more than half of its value before establishing strong support at 140. The market tried to reclaim resistance at 310 twice, but was sent back on both occasions. As a result, we have a massive reversal structure that might skyrocket the pair into a new all-time high.

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The market closed above 310 a couple of days ago on weak volume which is why it’s struggling to stay above that level. Technical indicators show that momentum is weakening, increasing the likelihood of a dip. A slight correction not only gives the market legs for its next move up, but it also offers you a chance to place orders.

They key indicator to watch for is volume. As long as volume remains sluggish, the market will most likely slide down to 280 first and then 262 next. That’s a good zone to accumulate positions. If volume suddenly spikes, at least 230k at Bitfinex, then we have a legitimate breakout that will take the market to 465.

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 Summary of Strategy

Buy: between 280 and 262 OR confirmed breakout with volume of at least 230k at Bitfinex

Support: 280, 262, and 243

Resistance: 310, 352, 400, and 412

Target: 465

Stop: If the market breaches 243

 

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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