Cryptocurrency Update: Bitcoin and Ethereum Down by 30-40% as Correction Accelerates, Time to Buy? | Hacked: Hacking Finance
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Cryptocurrency Update: Bitcoin and Ethereum Down by 30-40% as Correction Accelerates, Time to Buy?

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Cryptocurrency Update: Bitcoin and Ethereum Down by 30-40% as Correction Accelerates, Time to Buy?

Introduction

This article was posted on Thursday, 15:06, UTC.

How long will the correction last? This is probably the biggest question in the minds of the crypro-trading community right now.  As we warned yesterday, and (a little early) last week, Bitcoin and Ethereum were overbought on the long run and we concluded that:

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(…) a 30%-40%-50% correction, that has been the normal for Bitcoin in the past, is a huge psychological burden that makes a panic sale likely, usually just before the bottom. Because of this, it is better to wait for the correction and oversold readings, even if you will buy it at a higher price later on.

This is true for long-term investors who plan on holding on to the coins and adding to their core holdings on the dips. Short-term traders should still wait for the short-term trend to turn higher before buying into the coins. In this update, we will focus on the two major coins, as they still likely to dictate the trends, but we will come back later with the analysis of the other majors and an update on the long-term picture.

Bitcoin

The biggest coin is testing its long-term trendline currently, and that corresponds with a strong previous support level between the $2150 and $2200 levels providing a possible base for a bounce. The short-term charts are getting oversold already, so a bounce back towards $2400 is in the cards today. If I were shorting Bitcoin (which I don’t do) I would close a large chunk of my position around these levels. Long-term investors may already add to their positions here, although the re-test of the $1875-$2000 zone is still possible.

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Ethereum

Ethereum followed BTC lower despite its recent strength, and as we wrote yesterday, the $270-$250 zone looks ideal for long-term investors to add to their existing positions. A spike towards the $200-$230 zone is still possible after the monster rally, but the fundamental story remains intact for Ethereum, and we expect the bull market to continue after the correction runs its course.

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Mate Cser

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

Comments
  • user

    AUTHOR Roberto

    Posted on 3:28 pm June 15, 2017.

    In times like this we all panic and sell. I’ll Teel you what’s happening. People are selling their stocks and going on vacation and enjoying the summer and telling everyone how bitcoin paid for it all. Consider it a marketing cost. It will just come back bigger and stronger.

    • user

      AUTHOR ezra

      Posted on 4:46 pm June 15, 2017.

      Yup – I just added more ETH to my positions at 265$ lol – lets hope this goes up stronger than before.

  • user

    AUTHOR pezcado

    Posted on 5:44 pm June 15, 2017.

    Nice work Mate! Keep the good information coming!

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