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Cryptocurrency Analysis: Look Out Below, Bitcoin and Ethereum Hit One-Month Lows

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The price action that we described as suspicious yesterday changed dramatically after the harsh words of J.P. Morgan CEO Jamie Dimon, which led to another leg lower in the ongoing broad correction. The expected decline finally broke the support levels that held the majors up during the weekend sell-off, and now the most valuable coins are trading at one-lows following the huge rally. Bitcoin that has been relatively strong in recent weeks, is now below the $4000 level and quickly go close to the first major support level below that near $3800. Further key levels are found near $3500 and $3150, and as the correction unfolds, traders should be looking for reversals around those levels, although the long-term picture still not ideal for new investment positions.

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BTC/USD, 4-Hour Chart Analysis

The rest of the segment is in an even worse shape today, with Ethereum leading the way lower, already getting close to the $250 level just after breaking below crucial support at $285. Dash, Litecoin, NEO, and NEM all broke below major technical levels while Ripple, IOTA and Monero are looking slightly more resilient amid the broad decline, and Ethereum Classic is also down by less than 10%. As the correction is accelerating, and the coins are getting closer to a buy signal, the short-term charts will be more and more important even for investors, so let’s look at the details of today’s situation.

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Ethereum

ETH/USD, 4-Hour Chart Analysis

ETH easily broke primary support at $285 and it’s headed towards are main target zone for the correction between $235 and $250. With the long-term picture nearing oversold for the coin, investors should be looking for signs of panic selling in the coming days, which could mark at least a short-term bottom. Above $285, resistance is ahead at $330, $350 ,and $380, while below $235 the next major suppot is just above $200.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin dipped below the $64 level as we expected, and found short-term support just above $56, our first target. The coin is still overbought concerning the long-term picture, but most of the correction (at least price-wise) might be behind it. That said, a dip towards $51 is still in the cards, and we expect more corrective price action before a sustained move higher.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash just fell below the $300 level, but it is still well above the next crucial support zone near $265. The long-term picture remains overbought, but a quick move towards primary support could open up buying opportunities for long-term investors. The rising long-term trend remains clearly intact, with resistance ahead at $300, and $360.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP is trading right in the support zone just below $0.20, still above the long-term base formation that developed at the end of the coin’s lengthy correction. We expect the coin to outperform the other majors during the current correction, with a likely move towards the$0.26 and $0.30 levels after the next major bottom. Support is still found at $0.18 and near $0.16, while resistance is ahead at $0.26 and around the $0.30 level.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic broke below $14.50 today in early trading and the coin is trading just above the lower boundary of the long-term support zone. The coin is neutral regarding the long-term picture, and we expect the $13.50 level to hold in the coming weeks, with a possible short-term spike below it. The current levels still look attractive for long-term investors, but more volatility is likely as the broad correction unfolds in the segment.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero is holding up above the $100 level, still showing relative strength, despite the overbought long-term momentum readings. The coin is still likely to test the $80 level before the end of the correction, with further support at $72. Resistance is still ahead at $125, and near the all-time high above $150.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO dipped below the crucial $22 level and it is got very close to last week’s panic lows, still showing relative weakness, as the Chinese legislative uncertainty continues to weigh on it. Volatility is expected to remain elevated, and despite the oversold long-term readings, short-term traders should wait with new positions until an uptrend is established. Key resistance levels are ahead at $22, $25, and $30, while strong support is found just above $16.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA is testing the strong support zone between the $0.45 and $0.48 levels after yesterday’s rally attempt. Te declining trend remains intact, and although the long-term momentum is getting oversold, the broad correction could mean more volatility for the coin. That said, long-term investors could be looking for short-term dips to enter new positions, with strong support found near $0.35.

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2 Comments

2 Comments

  1. Chris G

    September 14, 2017 at 1:52 pm

    Litecoin down to 54 this morning, what do you think? Buy?

  2. Chris G

    September 14, 2017 at 2:52 pm

    well I just pulled the trigger at $49.7/LTC – seems like a good entry point.

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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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Analysis

Technical Analysis: Bitcoin Grinds Higher as Records Tumble in Altcoins

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The historical surge in the segment, which is the second such move this year, continued today, with another round of break-outs in some of the major altcoins and tepid gains for BTC investors. Ethereum, Ripple, Dash, and first and foremost Litecoin was leading the charge, with the recent star LTC topping $300, just after a day of hitting the $200 mark.

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Litecoin defied all odds after reaching extremely overbought readings, and the coin rode the speculative wave, turning exponential, not unlike IOTA and Bitcoin previously. With the coin being stretched in an unprecedented way on all time-frames, investors could even consider selling their core positions at the current levels, as a deep correction is almost granted in the coming period. The first meaningful support level is found at $125, and a re-test of the $100 level is probable during the next major correction.

LTC/USD, 4-Hour Chart Analysis

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Ripple finally ended a long period of relative weakness today, and the only major on a long-term by signal jumped over primary resistance at $0.26 and crossed the $0.30-$0.32 too in the euphoric sentiment. As the coin is not long-term overbought following the 6-month long consolidation, the buy signal in XRP remains intact, with the only major resistance level being found at the all-time high near $0.425.

XRPUSDT/USD, 4-Hour Chart Analysis

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