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Analysis

Daily Analysis: Bitcoin Nears Record High as Stocks Take a Breather

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Wednesday Market Recap

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Asset Current Value Daily Change
S&P 500 2388 0.25%
DAX 12478 0.22%
WTI Crude Oil 49.16 -0.72%
GOLD 1264.00 -0.26%
Bitcoin 1290 1.90%
EUR/USD 1.0892 -0.05%

 

Global stocks are little changed today, following the strong rally of the frost two days of the week, as investors await the tax proposal of Donald Trump. The promised tax cuts were among the catalysts behind the post-election rally on Wall Street, so the details of the plan could have a strong impact on the market. The mostly better than expected corporate earnings reports remained supportive of the advance, while geopolitical worries took the backseat so far this week. The Bank of Japan will release its monetary statement tonight, and that might stir up the current lull.

The Dollar rebounded against the major European currencies today, and continued higher compared to its commodity-related peers, like the Canadian Dollar and the Australian Dollar. Commodities are under pressure, as the Chinese stock market has been very weak recently, pointing to further weakness in the country’s economy and financial system, despite the positive official reports. Oil is still trading near the $49 per barrel level, after a brief rally this morning. Gold is just above the $1262 support, as US and European equities are still firm.

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Shanghai Composite down by 6% this month, 4-Hour Chart Analysis (NASDAQ comparison)

Bitcoin is in the center of attention in the Cryptocurrency world, as it trades right at its all-time highs after a persistent rally so far this week. Altcoins are having another very strong day in general, as Ethereum, Litecoin, NEM, and Litecoin are all higher, with NEM up by another 12%, closing in on Ehereum Classic in market capitalization. Ethereum is also very close to its prior high, just below the $600 level. Dash, Monero, and Ripple are slightly lower today, but they all remain in their trading ranges.

Ethreum, 4-Hour Chart Analysis

Technical Picture

The S&P 500 remains among the weaker major global indices, as it failed to hit a new high so far, despite the favorable French election result, and the following broad rally. A re-test of the prior all-time high near 2400 is likely in the coming days, as the benchmark broke out of from the slightly declining megaphone pattern that dominated trading for more than a month. Support is now found at 2355, 2332 and below that near 2320.

 

S&P 500, 4-Hour Chart Analysis

Key Economic Releases on Wednesday

Time, CET Country Release Actual Expected Previous
10:30 AUSTRALIA CPI (quarterly) 0.50% 0.60% 0.50%
16:00 CANADA Core Retail Sales -0.10% -0.30% 1.70%
16:30 US Crude Oil Inventories  -3.6 million -1.1 million -1 million

 

Key Economic Releases on Thursday

Time, CET Country Release Expected Previous
5:50 JAPAN Monetary Policy Statement
9:00 EUROZONE Base Interest Rate 0 0
14:30 EUROZONE Monetary Policy Statement
14:30 US Core Durable Goods 0.40% 0.50%
14:30 US Initial Jobless Claims (weekly) 241,000 244,000
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1 Comment

1 Comment

  1. Mati Greenspan

    April 26, 2017 at 4:02 pm

    All time high achieved!! 😀

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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.

(more…)

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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.

Featured image courtesy of Shutterstock.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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