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Analysis

Cryptocurrency Analysis: Coins Stabilize But China Doubts Persist

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The scary decline that started on Friday didn’t cause major technical damage in the most important coins, as the prior correction lows mostly held so far. The most watched Bitcoin stayed above the crucial $4000 level, and it’s now back near $4200 thanks to today’s modest rally. With the long-term pressures still being generally bearish, we expect more corrective price action in the most valuable coin, but until the primary support level is intact the short-term picture remains neutral.  Should the Chinese ban on crypt trading prove legit, the coin might be headed towards the $3800 and $3500 support levels, with another strong zone below those at $3150.

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BTC/USD, 4-Hour Chart Analysis

The other majors are in a slightly worse position, as BCT was also supported by safe haven buying in connection with North Korea, and the likes of Ethereum and NEO were also more affected by the earlier news on the Chinese ICO-ban. The small gains today didn’t change the short-term trends, and the recently surging currencies, Dash, Monero, and Litecoin are still overbought, while the more neutral coins like Ripple and ETC still look more promising for the coming weeks. Overall, the segment lost 20% of its market value, which currently stands at $145 million, and the coming week might be crucial to gauge the extent of the current correction.  Let’s see how the details

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Ethereum

ETH/USD, 4-Hour Chart Analysis

ETH didn’t break below the key $285 level following Friday’s flash crash, but it remains stuck below $300, 30% off its recent highs. The coin is getting close to neutral regarding the long-term picture, but we expect more volatility in the coming weeks, with a likely test of the $235-$250 support zone before the next sustained move higher. Resistance is ahead near $330, at $350, and near the $3890 level.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin bounced off the $64 level yet again during the weekend, and it remains in a short-term correction pattern, around the mid-point of the rising long-term trend channel. The coin is still expected to dip below $64 in during the correction, with the $56 and $51 levels providing strong support. Resistance is ahead at $75 and $80, with the all-time high above those levels near $96.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is holding above the $300 support level in the face of the overbought momentum readings, and the coin is still well inside its long-term rising trend. The crucial $360 level is ahead as primary resistance, while below $300, further support is found at $265 and near $220. We still expect a dip below $300 in the coming weeks, so long-term investors should still wait with opening new positions.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP recovered almost all of its flash-crash losses, and its trading right at the $0.22 level again, proving relatively strong amid the broad correction. We still expect the coin to outperform the segment in the coming period, with the long-term picture still being neutral, and with strong support just below $0.20, at $0.18. key resistance levels are ahead at $0.26 and near the $0.30 level.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic is back in its long-standing trading range after Friday’s spike lower, and the coin is once again lagging the broader market after a short period of strength. That said the long-term picture remains encouraging, and the current price level still seems attractive from a long-term perspective. Primary resistance is now at $16, with further levels at $18, and above that near the all-time highs at $23, while support is at $14.50 and around $13.50.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero remains in similar technical positions as Dash, also being overbought after a huge rally. The coin held above the $100 level during the weekend, but it’s well off the $125 resistance. We still expect the currency to dip below $100 in the coming weeks and the $80 and $72 levels are the most likely targets for the move, with further support at $58.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO is trading just above the $22 level after settling down following a very volatile week. The coin faces short-term resistance at $25, and with it being a good proxy for the effects of the Chinese crackdown, traders should pay close attention to the moves in the coming days. The downtrend remains intact in the currency, although the long-term picture is neutral after the more than 60% decline. Below $22, the coin has support at $16.50 while resistance is ahead near $30.

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1 Comment

  1. fermera_dany

    September 11, 2017 at 7:47 pm

    Thanks for the article.

    *You have a slight typo in the ETH levels.

    Resistance is ahead near $330, at $350, and near the $3890 level.

    Cheers

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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.

(more…)

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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.

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