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Cryptocurrency Update: Majors at Key Price Levels After Weekend Crash

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Ethereum recovered well after the Sunday morning crash that took the coin down to the $135 price level, with Bitcoin also bouncing higher, and the other majors following the two dominant currencies as well. ETH’s 20% rally means that the token is just below the previous low, at $172, which triggered the sell-off and liquidation during the weekend.

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ETH/USD, 4-Hour Chart Analysis

The currency dipped below the level and caused a strong wave of forced selling in the majors and the smaller coins, but most currencies are well off their lows, and getting close to important short-term resistance levels. While the trend is still clearly negative, a rally above the $175, could mark an important bottom in the coins, as the long-term picture is getting oversold, and Ethereum fell as much as 66% while BTC is also after a 40% correction. Let’s see how the majors are holding up after the 50% dip in the value of the crypto-market.

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Bitcoin

BTC/USD, 4-Hour Analysis

Bitcoin is right at the $2000 level following the bounce off the lows, which marks the upper boundary of the base formation that we monitored as in recent weeks. A push above that level would point to a test of the $2150 resistance, which would be an important step in the long-term bottoming process, although the declining trend remains intact.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin was among the strongest coins during the recent correction period, and now it’s still right at the long-term rising trendline. The short-term correction pattern is still dominant, but a move above $44 would trigger a buy signal. The MACD indicator is already after a bullish cross but short-term traders are still advised to wait with new positions until a confirmation of the trend change.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash also tested the rising long-term trend while staying well inside the declining short-term trend following the bounce. Dash faces storng resistance at the $150 level, and it trades right at the crucial support zone around $135 that needs to hold to keep the coin in a bullish pattern, after the spike below it during Sunday’s decline.

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple quickly recovered above the previous low after the spike lower but it remains well below the line-in-the-sand 0.175 level, with the two-month long correction pattern still being dominant. The coin remains far from a buy signal, but the forming base pattern still points to a coming test of the declining trendline, which is currently at 0.235.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

ETC was the strongest major during Ethereum’s crash, staying above the prior correction low, and bouncing back above the $14.50 resistance, close to the declining short-term trendline. The token is close to buy signal this morning and could be a leader in the coming days if it breaks out of the short-term trend and remains above $15.

Monero

XMR/USD, Daily Chart Analysis

The declining short-term trend for Monero remains strong, as the currency remains among the weakest majors. The long-term support at $32 is int he focus, and the token should recover above that to keep the developing base pattern between $32 and $37 intact. The coin might still test the $25 level before moving higher, especially if Ethereum and Bitcoin fail to remain above the $175 and $2000 level.

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2 Comments

2 Comments

  1. gozames

    July 17, 2017 at 9:41 am

    Hello,

    About ETH I think this panic was started several week ago and after there was so many articles posts and everything to feed more and more this panic, also if we consider fact that in ETH market there was so many starter who don’t knew crypto market everything went well for them who wanted this.

    I see this picture is very positive for Long term eth price, more persons who where sellers at 100-150 have sold there coins and it’s went to them who can handle it till for example 250 so this is very good, I also see there are many sellers in USD pair at this moment that’s also good, and I’m also sure that lot of newbes who have sold at 140-160 will buy back at 200-210 so seams eth is in good hands till 300

    I feel there will be more bounce this week or start of next, trading is not about feelings but that’s just my opinion.

    Thats just my opinion I’m not expert so don’t trust me! 😀

    • Mate Cser

      July 17, 2017 at 4:43 pm

      Hello Gozames, I think you are right, the sentiment has been reset enough for a rally on the wall of worry. Just as it was to bullish in June, now we are at the other extreme. Long-term it looks really good right now.

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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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