Connect with us

Analysis

Cryptocurrency Analysis: Bitcoin Price Tumbles to $7000 as Rally Fizzles

Published

on

After the recent surge in Bitcoin reached a euphoric phase, triggering both short and long-term sell signals, the coin finally rolled over today, and quickly fell to $7000 from its all-time high just above the $7500 level. Altcoins haven’t followed the most valuable coin for now as the negative correlation of the majors with BTC remained intact.

// -- Discuss and ask questions in our community on Workplace.

Bitcoin is still severely overbought from an investment perspective, and while the short-term rising trend is intact, a possible head and shoulders pattern is forming on the 4-hour chart, which could be first the phase of a deeper correction, with an initial target of $6700. Support levels are still found at $6700, $6000, $5800, and $5400. We advise both traders and investors to wait with opening new positions in Bitcoin.

BTC/USD, 4-Hour Chart Analysis

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Ethereum Classic followed through on its break-out, as we expected, and it surged past the key $13.50 level, while Monero also moved sharply higher to test the $100 resistance today. The Other major altcoins are also slightly higher today, but the technical setup is unchanged in case of the rest of the market.  Let’s see how the short-term charts look after the eventful weekend.

Ethereum

ETH/USD, 4-Hour Chart Analysis

Ethereum is still trading near the $300 level, as the volatility in Bitcoin didn’t affect the token’s market substantially. The coin is still trading within the long-term uptrend despite the lengthy consolidation, but the $315 resistance remains strong above the current price level. That said, we still expect a move towards the $330-$350 zone in the coming period, while support is found at $285 and $250.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin is also trading in a relatively narrow range around the $56 level, while the coin remained clearly above the $51 support level, despite last week’s altcoin sell-off. The currency is still in an encouraging long-term setup, although the consolidation pattern remains dominant. In the case of a bullish move, targets are found at $64 and $75, while support below $51 is near $44.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is trading in a lengthy correction pattern despite the recent bounce, although the upper boundary of the formation is approaching the current levels. The coin faces strong resistance at $300, but we expect a move above that zone and a resumption of the underlying rising trend soon. Targets for the move are at $330 and $360, while key support is found at $265.

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple popped higher slightly today after a low volatility period, but it remains stuck in a range around the $0.2050 level, with still no short-term buy signal being given by the coin. That said, the long-term picture remains bullish, with targets ahead near $0.2250, $0.26 and $0.30. Support is found just below $0.20, near $0.18, and at $0.16.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic is getting short-term overbought after the explosive break-out during the weekend, but the clear move above $13.50 is a bullish sign for the coming weeks. After the long period of relative weakness, we expect at least a test of the $16 level during the current move, with further targets at $18 and $23, while below $13.50, support is found at $12.50.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero finally made its move towards the $100 resistance today after the lengthy consolidation phase, but for now, it remains below the key level. Both the short- and long-term buy signal is intact, and we still expect a move towards the $125 level in the coming weeks. Support levels are still found near $80 and at $68.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO is trading just below the crucial $27 level after last week’s spike lower, but the long-term picture remains bullish and we expect the coin to move above the $30 level soon, despite the strong resistance in that zone. Above that, the main target is the $40 level, while another resistance zone is found at $34.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA remains stuck in a declining trend, but the $0.35 level is still holding on, and a trend change could be near. Traders should wait with opening new positions until a bullish confirmation, but investors could add to their holdings at the current levels, with key resistance levels still ahead at $0.42 and between $0.45 and $0.48.

Featured image from Shutterstock

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.



Feedback or Requests?

Analysis

Cryptocurrency Analysis: Ripple Continues Rampage as Litecoin and Ethereum Enter Correction

Published

on

Ripple remained in the center of attention in the segment after breaking out to a new all-time high yesterday, and the coin almost doubled in value, climbing above the $0.80 level. The currency concluded a 6-month long consolidation pattern with the move after being the only major on a long-term buy signal in our trend model.

// -- Discuss and ask questions in our community on Workplace.

XRP gave a short-term sell signal today, while turning neutral regarding the long-term setup. Investors now shouldn’t add to their positions, although further gains are still possible, and reducing holdings somewhat is a good idea here. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

While Bitcoin stagnated, and Bitcoin Cash jumped, Ethereum, Litecoin, Dash, and IOTA has been drifting slightly lower, although the recent gains are still mostly intact, and the basic setup in the segment is unchanged.

Litecoin fell below the $300 level after yesterday’s consolidation, and the coin faced strong selling pressure in the latter half of the session. The currency remains extremely stretched regarding the long-term momentum indicators, and although the short-term uptrend is still intact, a deeper correction is likely in the coming weeks, with key support levels found at $125 and $100, and weaker levels at $260 and $170.

LTC/USD, 4-Hour Chart Analysis

(more…)

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.



Feedback or Requests?

Continue Reading

Analysis

Daily Analysis: Dollar Falls, Gold Jumps after Yellen’s Final Move

Published

on

Wednesday Market Recap

Asset Current Value Daily Change
S&P 500 2668 -0.02%
DAX 13125 -0.45%
WTI Crude Oil 56.65 -0.68%
GOLD 1258.00 1.35%
Bitcoin 16,100 -6.32%
EUR/USD 1.1842 0.73%

The Federal Reserve hiked interest rates as expected today, and although the central bank’s monetary statement was slightly more hawkish than expected, the market’s reaction didn’t reflect the much-anticipated move. The worse than expected Core CPI reading that underlined the low-inflation narrative weighed on the recently strong Greenback, while stocks were unchanged after decision and bonds gained ground as yields retreated.

// -- Discuss and ask questions in our community on Workplace.

EUR/USD, 4-Hour Chart Analysis

The major indices are hovering near their all-time highs with the DOW leading the way higher, hitting a new record for the second day in a row. While volatility Is expected to remain low as we approach the end of the year, market internals and valuation levels are still concerning from a long-term perspective, and stocks outside the US are also negatively diverging. The action in crude oil could be slightly more interesting as the commodity is starting to act in a slightly bearish manner after a grinding multi-month rally.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

WTI Crude Oil, 4-Hour Chart Analysis

The Brexit process is still in the center of attention in Europe, although volatility took a nosedive on the old continent as well, and it’s unlikely that the Christmas period will be much different, given the predictable drop in volumes and trading activity. The date of the next election in the financially and politically troubled Italy has been set to March 4th next year, and the early date caused some turmoil in the countries assets, which dragged the Euro Stoxx 50 lower today, together with the DAX and the other major indices.

Cryptocurrencies

As the total market cap of the crypto-market crossed the incredible $500 billion mark, Ripple, NEO, and Ethereum made headlines with lofty gains in the face of the severely overbought readings elsewhere in the segment. While XRP and NEO are still not overbought from an investment perspective, Ethereum reached our final target for its break-out and triggered a long-term sell signal.

ETH/USD, 4-Hour Chart Analysis

The previously surging IOTA continued its correction, Litecoin consolidated in a relatively narrow range, while Dash, ETC, and Monero scored marginal new highs before turning lower together with BTC. The most valuable coin that has lost some of its momentum “mojo” in recent days fell back below last week’s highs, and that could mark a failed break-out and a start of the deeper correction that seems more and more likely.

BTC/USD, 4-Hour Chart Analysis

Key Economic Releases on Wednesday

Time, CET Country Release Actual Expected Previous
11:30 UK Average Earnings 2.5% 2.5% 2.3%
11:30 UK Claimant Count Change 5,900 3,300 6,500
11:30 UK Unemployment Rate 4.3% 4.2% 4.35
15:30 US Core CPI 0.1% 0.2% 0.2%
15:30 US Crude Oil Inventories -5.1 mill -3.6 mill -5.6 mill
21:00 US Fed Rate Decision 1.5% 1.5% 1.25%
21:00 US FOMC Statement

Featured image from Shutterstock

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.



Feedback or Requests?

Continue Reading

Analysis

Technical Analysis: Volatility on the Rise Again, as Ripple and Ethereum Hit Targets

Published

on

Ripple has been the star of today’s session in the cryptocurrency segment, as the only major coin on a long-term buy signal in our trend model continued yesterday’s break-out, and surged to a new all-time high. The currency cleared the $0.425 level that marked the top in May, and after the more than 6-month long consolidation phase, it promptly neared the $0.50 level.

// -- Discuss and ask questions in our community on Workplace.

While the short-term momentum indicators are now stretched, the coin is still in an encouraging long-term setup, although the best period to buy already passed. The coin could be dragged lower in the case of the expected broad correction in the segment, but we expect XRP to outperform in the coming period, with support levels found at the prior high and below that in the range between $0.30-$0.32.

XRP/USDT, 4-Hour Chart Analysis

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Ethereum has been the other top coin on the rise, as the second largest digital currency surged past the final range projection target of the break-out two weeks ago at $685 in the aftermath of the launch of the BTC futures on Monday. The ETH token is now also on a sell signal on all time-frames, and we advise investors and investors to wait for the next major correction to establish new positions. Support levels are now found at $575, $500, $480, and $400.

ETH/USD, 4-Hour Chart Analysis

(more…)

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.



Feedback or Requests?

Continue Reading

Trending