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Analysis

Cryptocurrency Analysis: Bitcoin Tops $4000 as Rebound Continues

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As the effects of last week’s crash are waning, the recovery continues in the segment, although Bitcoin’s relative strength is prominent. The other majors are still well below their prior highs, while BTC reached the $4150 level today in early trading, surging past the key $4000 level. While the correction will likely take the coin way lower from here after the initial rally, the rebound’s strength is encouraging for bulls, and the long-term picture is now favorable for a durable bottom to form. The coin has support at $3800, $3500, and between $300 and $3150.

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BTC/USD, 4-Hour Chart Analysis

Ethereum touched $300 during today’s rally, while Dash has been the strongest altcoin, technically speaking, since the crash low, as the coin surges back above $300 and breached the 4330 level as well. Among the other previous market leaders, Monero also rallied back to $100, while Litecoin remains beaten down, just trading north of the $51 support. IOTA built on its relative strength and rallied strongly of the lows as well, while Ethereum Classic remains the weakest looking major coin. There might be a choppy period ahead for traders, as the market will likely settle down after the huge bounce.  Let’s see the details of the short-term picture.

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Ethereum

ETH/USD, 4-Hour Chart Analysis

ETH is trading right at the crucial support/resistance level at $285 after reaching $300 for a 50% rally off the crash low. The coin is near the declining short-term trendline, and it’s still well below its all-time high that it hit back in June. The short-term MACD is now in neutral territory and a re-test of the $250 support is still likely before a decisive trend change. Support is found near $285, $250, and $235, while resistance is ahead at $330.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin has been halted by the $56 resistance level during the rebound, but the coin is back to its rising long-term trendline after the spike lower. We expect more volatile consolidation from the coin, with a focus on the $50-$51 support/resistance zone. The declining short-term trend is clearly intact, with resistance ahead at $64, and further support near $44.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is trading slightly above the declining short-term trendline, being the only one among the majors to breach trendline resistance during the rebound. The coin is still expected to re-test the $300 level in the coming week, but the relative strength is encouraging, and short-term dips should be bought by long-term investors. Strong support is still found near $300 and $265, with resistance ahead at $360.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP is back above the long-term base formation after the bounce, and the coin held up above the prior declining trendline during the crash. The resistance zone between $0.1950 and $0.20 stopped the advance for now, but we still expect the currency to be relatively strong after the correction ends. Support is now found at $0.18 and $0.16 while further resistance is ahead near $0.22.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic tried to rally above the declining trendline and the crucial $13.50 resistance, but the level held, and the coin remains relatively weak from a technical perspective. The current price levels still look attractive for long-term investors, but short-term traders should wait until a break above primary resistance before entering new positions. Above the resistance zone around $14, further strong levels are at $16 and $18, while support is found near $9.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero is still gravitating towards the $100 level, as the coin remains among the less volatile majors since the crash. The currency is clearly in a declining short-term trend, but we expect it to remain relatively strong in the coming weeks, and hold above $80 even if the broad correction continues. Further support is found near $68, while resistance is ahead at $125.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO settled down after the crazy period for the coin, as the market digested the effects of the Chinese legislative changes. The coin recovered above the $16.50 level, and although the declining trend is still dominant, the worst should be behind for bulls. Support is found near $16.40 and $13 while strong resistance is ahead at $22, $25, and $30. We expect no new lows for the coin in the coming period, and investors could now buy the short-term dips.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA is showing considerable short-term relative strength after holding up well during the crash as well. The declining long-term trendline is now broken and although the $0.64 level is still ahead as primary resistance, we expect the $0.45-$0.48 level to limit the coming dips, and a new uptrend to develop in the coming weeks.

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3 Comments

3 Comments

  1. tieuthanhliem

    September 18, 2017 at 7:28 pm

    As china widens bitcoin crackdown, we can see $2000 again, that said we are in bear market

  2. FalconX

    September 18, 2017 at 8:10 pm

    you meant “between 3000 and 3150” in the first paragraph correct?

  3. embersburnbrightly

    September 19, 2017 at 2:02 am

    “The coin has support at $3800, $3500, and between $300 and $3150.” Between $300 and $3,150 that’s some range! (Sure you meant between $3,000 and $3,150.)

    🙂

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Analysis

Long-Term Cryptocurrency Analysis: Bitcoin Flirts with $8000 as Altcoin Bull Persists

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Bitcoin’s swift recovery was the main topic of the week, as the most valuable coin not just regained its steep losses, but hit a marginal new high towards the end of the period. The entire segment is experiencing capital inflows as the total value of the coins climbed above $230 billion for the first time ever after finally leaving the vicinity of the $200 billion mark.

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BTC breached the $8000 level before turning slightly lower on Friday, but despite the severely overbought daily chart, it is still trading near its all-time highs. As the long-term picture still suggests a deeper correction, investors should wait with opening new positions and traders should also control position sizes here. Key support levels are found at $7700, $7000, and $6700, while the recent key break-out level at $5000 still hasn’t been re-tested.

BTC/USD, Daily Chart Analysis

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Dash is still the most bullish altcoin from a technical standpoint, despite this week’s short-term correction, as the coin is trading above its prior all-time high, and this weekend, it looks ready to test the break-out high near $500. Support levels are still found at $400, $360, and $330, and as the long-term picture is approaching overbought territory, investors should only hold on to their positions here.

DASH/USD, Daily Chart Analysis

The other major altcoins are also mostly in bullish setups, with some of them already in the latter stages of this cycle, like Monero and IOTA, but elsewhere in the segment, there are still opportunities for both traders and investors. Let’s see the detailed long-term view.

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Analysis

Technical Analysis: Litecoin and NEO Jump as Bitcoin Trades near $8000

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The cryptocurrency segment continued its bullish run, as the total value of the coins climbed above $230 billion for the first time ever, while Bitcoin also posted marginal new highs. The most valuable currency is still overbought regarding the long-term picture, and we continue to expect a deeper correction in the coming period, despite the recent strong rally. Support levels are still found $7700, $7000, and $6700 while the $8000 level is ahead as a major obstacle.

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BTC/USD, 4-Hour Chart Analysis

Litecoin has been the most active major besides Bitcoin, as it rallied strongly after breaking out above the key $64 resistance and it breached the next target at $75 before heading below $70 again. The coin remains in bullish long- and short-term patterns, and we expect a move above the major resistance zone ahead with the next target found at $82.50.

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Litecoin/USD, 4-Hour Chart Analysis

NEO is showing strength in the second half of the session, while Monero is recovering well from a short-term dip, similarly to IOTA and Ethereum Classic. Ethereum continues to represent stability in the segment, while Ripple failed to build up momentum so far after yesterdays spike higher. With still most of the altcoins being in bullish setups, let’s see the short-term charts.

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Analysis

XRP Looking to Make a Significant Rally

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The XRP/USD pair went into a deep correction after hitting 0.29490 a month ago. It nosedived to the major support level of 0.19052. The pair consolidated for a few weeks which gave the market the legs to test resistance at 0.22924.

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Technical indicators show that the pair was ready to breach its immediate resistance, which it did this morning. Now that resistance has broke at 0.22924, it’s time to buy. This successful breakout will take the pair to 0.23997 first and 0.26563 next before hitting the target of 0.26796 which is coincidentally a major resistance level.

Technical indicators hint that the market would most likely be overbought by the time it hits 0.26796. Should it respect the major resistance level, the likelihood of the market turning extremely bearish increases. Therefore, it is recommended to closely watch your trail stops to preserve your gains.  

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Summary of Strategy

Buy: As close to 0.22924

Support: 0.22224 and 0.20081

Target: 0.26796

Stop: If the market breaches 0.20081 as next reliable support is 0.19052

 

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.

Featured image courtesy of 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.



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