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Analysis

Daily Analysis: Theresa May Under Pressure as Bitcoin Goes Wild and Altcoins Rally

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Wednesday Market Recap

Asset Current Value Daily Change
S&P 500 2593 0.29%
DAX 13,382 0.02%
WTI Crude Oil 56.84 -0.22%
GOLD 1282.00 0.11%
Bitcoin 7366 3.89%
He 1.1590 -0.12%

While Bitcoin’s new record high and its following slump took center stage, global equities stabilized after yesterday’s mixed performance, even as further doubts emerged regarding the GOP’s tax plan. As Donald Trump is visiting Asia, his party is still on the edge regarding the controversial proposal, and Treasury Secretary Mnuchin said that he is not ruling out the delay of the corporate tax cut. Stocks rebounded from their early lows, as the NASDAQ 100 led the way yet again, and although small caps remained under selling pressure, all of the major indices got back to green int eh second half of the session.

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Asian stocks continued higher while their European peers bounced back together with US equities, while currencies had another relatively calm session. The Great British Pound lost significant ground again, as Theresa May’s government seems to be weakening further, and the forced resignation of Priti Patel is another serious issue for the Prime Minister who is already on the defense thanks to the grueling Brexit process.

EUR/GBP, 4-Hour Chart Analysis

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The Pound fell sharply against both the Euro and the Dollar, while the rest of the majors were little changed, with the Yen experiencing some intraday volatility thanks to the rebound in risk assets. Gold, the other main safe-haven asset performed better than the Yen, finishing slightly higher, while oil had a volatile session, as another bearish US inventory release and the ongoing Middle East turmoil pushed the commodity in opposite directions.

Gold, 4-Hour Analysis

Cryptocurrencies

Bitcoin got back in the spotlight today, as the most valuable coin first rallied back to its all-time high near $7500, then surged to $7900 for a new record high on the cancellation of the Segwit2x fork. If that wasn’t enough, the coin crashed to $7000 after the spike, just to finish the US session back near $7500. While the long-term setup remained unchanged and dangerously overbought, the strong short-term uptrend is still unchanged, despite the crazy day.

BTC/USD, 4-Hour Chart Analysis

Altcoins shined bright amid Bitcoin’s frenzy, with several majors breaking out, or continuing their recent bullish moves. Dash finally moved above the $300 level with a more than 5% day, Monero got clear of the $100 resistance with a 10% jump, but NEO and IOTA were the stars of the session with gains of 18% and 23% respectively. Overall, the segment climbed to record highs as the total market cap of the coins briefly reached $210 billion.

IOTA/USD, 4-Hour Chart Analysis

Key Economic Releases on Wednesday

Time, CET Country Release Actual Expected Previous
Tent. CHINA Trade Balance 254 bill 275 bill 193 bill
05:30 CANADA Buiding Permits 3.8% 0.7% -5.5%
10:30 US Crude Oil Inventories 2.2 mill -2.5 mill -2.4 mill

Key Economic Releases on Thursday

Time, CET Country Release Expected Previous
03:30 CHINA CPI 1.8% 1.6%
03:30 CHINA PPI 6.6% 6.9%
15:30 CANADA NHPI 0.2% 0.1%
15:30 US Unemployment Claims 232,000 229,000

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Analysis

Long-Term Cryptocurrency Analysis: All Majors Stretched as Ripple Finally Breaks-Out

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Although the previous leaders of the rally started to correct or at least consolidate in the wake of the overbought long-term setups, another batch of coins turned exponential, with Litecoin, Ripple, and Ethereum all registering lofty gains this week. Bitcoin, Monero, and Dash have been holding up well, and even drifted to new marginal highs during the period, while Ethereum Classic had a more volatile week, before moving to new highs today.

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XRP left the broad trading range that has dominated its market since May, and surged to new all-time highs while almost quadrupling in the process. As the coin was the only major on a long-term buy signal according to our trend model, and the move triggered a sell signal on Thursday, now all of our tracked coins are on sell signals.

Ripple could be in for further short-term gains but long-term investors should reduce their positions after this week’s spike. Support levels are found Major at the prior high near $0.4250 and in the $0.30-$0.32 range.

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XRP/USDT, Daily Chart Analysis

IOTA, which has been leading the market higher before is down by more than 30% off its all-time high, but given the exponential move before, an even deeper correction is likely in the coming weeks, and investors should wait until a more favorable setup to add to their positions. Strong support is only found at $3 and $1.5, but potential Fibonacci support is at $2.35.

IOT/USD, Daily Chart Analysis

Let’s see how the long-term charts of the other majors look this weekend.

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Analysis

Technical Analysis: Bitcoin Up Again as Altcoins Mixed in Volatile Trading

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Bitcoin is at a new all-time high today, although the momentum of today’s move is far below from what we saw recently, and the coin only managed to reach a marginal record high yet again. BTC is now worth $300 billion, and it is still trading right at the short-term trendline, inside a rising wedge pattern that shows a clear momentum divergence.

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With the short-term trend still being intact further gains are still possible, but as all the majors are overbought from a long-term perspective, we still advise investors to wait for a better buying opportunity before adding to their holdings. Primary support is still found near $13,000, with further levels at $11,300, $10,000, $9000, and stronger levels at $8200 and $7700.

BTC/USD, 4-Hour Chart Analysis

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 XRP entered a volatile short-term correction after its two-day surge after giving a short-term sell signal yesterday, and the coin spiked back towards $0.60 before settling down just below yesterday’s highs. The long-term setup also turned overbought thanks to the almost 300% rally, and now investors should reduce their holdings, even as further gains are still possible. 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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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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