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Analysis

Cryptocurrency Analysis: Coins Rebound After Bloody Monday

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The sell-off that was triggered by technical reasons, and has been accelerated by yesterday’s Chinese ban on ICOs ran out of steam and the major coins recovered some of the steep losses today in early trading. Bitcoin touched $4000 during the decline, completing a 20% correction off its all-time high. The currency is now back near the key $4400 support/resistance line, that could be a line-in-the-sand level for the current move. The short-term momentum might still support the bounce, as it is still slightly oversold, but the long-term picture still points a deeper correction. The $3800 and $3500 support levels are the most likely targets for the move, with strong support found at $3150 as well.

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BTC/USD, 4-Hour Chart Analysis

Yesterday’s biggest loser, NEO is up by the most today gaining more than 15% and recovering above crucial resistance, while most of the largest coins are up by less than 5%, and the whole segment is well below its all-time high. Ethereum that has been hit hard on Monday is back above $300, while Ripple and Ethereum Classic are trading north of $0.20 and $16 respectively. Monero and Dash are also up but remain heavily overbought regarding the long-term picture. We still expect more correction from the majors, so investors are still advised to be patient with new positions, although the less overbought currencies already look attractive here. Let’s look at details of the short-term setups.

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Ethereum

ETH/USD, 4-Hour Chart Analysis

ETH testes the $285 level yesterday and rebounded strongly to trade between the $300 and $330 support/resistance levels today. The con is oversold short-term but still slightly overbought concerning the long-term picture. We expect more correction in the coming weeks, and better buying opportunities for investors below the $300 level, with support levels at $285, $270, $250, and $230.

Litecoin

LTC/USD, 4-Hour Chart Analysis

LTC touched $64 but recovered after the sharp correction and it is no trading near the $75 level, still well above the prior all-time high. The currency could still be headed towards the $56 level, as it remains long-term overbought, while the rising trendline is ahead as primary resistance just above $80. Below $64 and $56, further support is at $51.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash cut slightly below $300 yesterday, but it’s now up by 10% amid the broad rally, and the coin is among the relatively stronger ones short-term, despite the heavily overbought long-term position. The currency has strong support near $300 and $265, with the prior all-time highs being found even below those zones near $220. Long-term investors should still be patient, as a decline below $300 is still likely.

Ripple

XRP/USD, 4-Hour Chart Analysis

The break-out of Ripple remained intact despite the steep correction, and the coin managed to climb back above the crucial $0.20 level although the strong support/resistance zone near $0.22 is still ahead, and the declining consolidation pattern also provides resistance around $0.24. We expect limited downside movement from the currency, given the long-term setup, but more volatility and sideways trading are likely. In the coming period, with support near $0.18 and $0.16.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic has been very volatile during today’s rebound as it reached the $18 level couple of times after getting close to $16 yesterday. The coin is holding on to its break-out just like Ripple, but it is relatively weaker than its peers and that could warn of a pull-back to the prior long-term trading range between $13.50 and $16.  That said, the long-term picture is still encouraging and investors could still buy the dips, anticipating a rally to new highs following the correction.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero fell more than 30% off its all-time high, touched the $100 price level yesterday, and rallied up to the key $125 support/resistance line today. The coin is oversold short-term just like its peers, but it remains strenuously overbought long-term. Below $100 strong support is found near $72 and around $58.

NEM

NEM/BTC, 4-Hour Chart Analysis

NEM is still virtually unchanged compared to BTC, as it recovered well together with the largest coin today. The coin remains in a broad range between 0.0000575 and 0.000075, with a promising long-term outlook. The currency is trading right at the 0.000065 support/resistance level, with more support at 0.000048 and strong resistance ahead at 0.00009.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO has been the most volatile coins following the Chinese ban, and it bounced back to $25 after trading as low as $16.50 during the crash. The coin still looks attractive at these levels, but more volatility is expected with a possible test of yesterday’s lows in the coming days. Resistance is ahead at $30 and near $44.

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4 Comments

4 Comments

  1. Chris G

    September 5, 2017 at 6:28 pm

    I was def. a bit surprised to see another author recommending an ETH trade with a $400 profit target – I’m assuming the timelines for your projected corrections differ from the timeline for a proposed price reversal. Case in point per avoiding mixed investment timelines.

  2. Lakshmana

    September 5, 2017 at 9:53 pm

    Hello Mate,

    first let me thank you for your guidance. It is appreciated.

    Now, I have a question:

    Your advice here seems to be in conflict with that of Dmitriy. Your recommendation here, in the BTC section, is:

    “The short-term momentum might still support the bounce, as it is still slightly oversold, but the long-term picture still points a deeper correction. ”

    At the same time, Dmitriy advises some 20 hours ago:

    “The market is in strong bullish trend and we should try to catch a new price movement as quickly as possible. Pending orders for buy can be placed at 4310.00 level. … Profit target is at 5000.00 level and the main part of trading volume should be left for long run. ”

    This was published on TradingView, not here, but still there is a direct link to Hacked.com right underneath the post and clearly you are both active here.

    How should one navigate these conflicting recommendations? Do you somehow sync your advice, so that your followers don’t get into these conflicts?

    Thank you.

  3. Chris G

    September 6, 2017 at 3:54 am

    looking like short-term, the self-off is reversing …

  4. Eddie91990

    September 6, 2017 at 4:44 pm

    I’m confused between with you and dimitry????
    Have you any clarification?

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Analysis

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

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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.

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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

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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

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Analysis

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

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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.

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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.

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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

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Analysis

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

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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.

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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

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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

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