Connect with us

Analysis

Ethereum, Bitcoin, Litecoin & DASH Analysis

Published

on

Ethereum

Regular readers will know that we have been waiting several days for ETH to pass through an arc pair. As shown in the picture below, that has happened, and the asset broke upwards as soon as it was able to. This is a rather bullish development. The next arc pair is in the area of $62, and will likely be heading there.

// -- Discuss and ask questions in our community on Workplace.

Bitcoin

As pointed out in the weekend update, Bitcoin is still in a short-term arc despite having given a longer-term buy signal. My best guess is that the coin will be able to breakout to the upside, but I would prefer to wait until I see the breakout happen, rather than buy the coin in the hope that it will. It is pressing hard against resistance even as these words are being typed. However, the arc has been an effective barrier for several days already. It could continue for a while longer.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Litecoin

Several readers have been on this ride since it broke out above $4. Our target has long been $15, and we reached that target yesterday. Indeed, price went to $16 before pulling back to $15. This 3 hour candle bar is an energy time, and price has been caught between the top of the square and the 1×1 Gann angle for several candles now. I sold this coin at $15 and though I think another rally is possible, the EASY money has already been made, as they say. A pullback is likely. It makes more sense to me to watch this from the sidelines for awhile.

ETC

We covered this sleeper last week, and it rallied again the past few days while I was preoccupied with litecoin. ETC made impressive gains, but in all likelihood the run is close to over. The next (5th) arc is at $4, and the price is close to that now. I think it’s too late to catch this train.

DASH

I have included DASH in today’s column because I have an intuition that it is going to get interesting soon. As you can see, on a longer-term setup price has been moving sideways for sometime but has just met a 2nd arc. It is possible that it will break down here. However, it seems more likely that it will use the sideways movement of the past few weeks as a base to rally to the next resistance at ~ $132. Time will tell.

 

Remember: The author is a trader who is subject to all manner of error in judgment. Do your own research, and be prepared to take full responsibility for your own trades.

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.



Feedback or Requests?

4 Comments

4 Comments

  1. Ershad

    April 24, 2017 at 7:10 am

    Hi Jim,

    Thanks for your article, I entered the ETC market when the price was near $2.5, and wanted to ask what price would you recommend selling before we see a pullback?

    Kind regards,
    Ershad

    • Jim Fredrickson

      April 24, 2017 at 9:18 am

      Good for you. Good catch. There might well be a rally to $4. I would cash out there if you are able to. Good luck with that trade.

  2. tadej

    April 24, 2017 at 11:00 am

    Hi Jim,

    Your analysis was on spot for LTC any many people made a lot of money. Very good.

    I know you cannot exactly predict how each alt will behave but how come we are missing with XRP. I believe you made 4 articles on XRP and all went the other way or no movement at all. Do you think there is some other variables we are not seeing?

    Otherwise thanks for the great insights!

  3. Jim Fredrickson

    April 24, 2017 at 1:31 pm

    Yes, there is a variable or two or three I don’t know about. All I can do is play the odds like a blackjack player who bets higher when he thinks the count favors a face card. Even if his count is accurate, he doesn’t know for sure the next card will be a face card. I use stops because I know that I might be wrong. I often am. Part of the trick to this business is realizing quickly when you are wrong, and getting the hell out of the trade before you lose too much.
    I believe Ripple will rally hard in the not-distant future, but so far it is stubbornly refusing to do so, and it doesn’t much care if I am holding my breath waiting…

You must be logged in to post a comment Login

Leave a Reply

Analysis

Technical Analysis: Litecoin Continues Surge as Bitcoin Tests Highs

Published

on

With the crypto world being focused on the historical futures launch, the major coins all enjoyed buying following a hectic weekend, and a volatile week as a whole. BTC itself got another boost from the widespread publicity and the volatile correction of the recent days ended, with the most valuable coin bouncing back towards its all-time high.

// -- Discuss and ask questions in our community on Workplace.

While the long-term picture remains severely overbought, the short-term picture is not stretched and further gains are possible even amid the elevated correction risk. That said, investors should wait for a more favorable entry point to ad dot their holdings, while traders should control position sizes in the light of the long-term setup. Major support levels are now near $13,000, $11,300, and $10,000, with stronger levels still at $8200 and $7700.

BTC/USD, 4-Hour Chart Analysis

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

The major altcoins are all up today, but only Monero and Litecoin are still within short-term uptrends, and the segment as a whole is still dangerously overextended, and a deeper correction is very likely in the coming weeks. LTC continued its recent break-out, getting close to the $200 level, and joining the extremely overbought group regarding the long-term momentum, and triggering a long-term sell signal in our trend model. Key support levels are found $100 at $75 and $64, with a weaker primary level at $125.

LTC/USD, 4-Hour Chart Analysis

(more…)

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.



Feedback or Requests?

Continue Reading

Analysis

Long-Term Analysis of the Silver Market

Published

on

Silver

The silver market has once again caught investors’ interest as the price is nearing areas not seen since late 2008.

// -- Discuss and ask questions in our community on Workplace.

2017 started at a low point for silver, and it seems it will end the year that way as well, meaning investors who bought at the beginning of the year haven’t suffered nor gained much.

This doesn’t mean, however, that the price hasn’t moved during the year. After the low start of the year, silver quickly tacked on about 18% to a top of $17.50 per ounce.

In terms of fundamentals in the silver market, things look a bit complicated for 2018. There are multiple forces pulling in different directions for the price of silver going forward:

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Positives

  • A sharp stock market correction can be expected to occur some time in 2018. Most likely, this will happen sooner rather than later. Stock market crashes always trigger a flight to safety, meaning gold, silver, and quite possibly bitcoin, can benefit.
  • We are seeing signs that inflation may be starting to rise again, although this is not confirmed yet. Rising inflation is always good for precious metals.
  • If the US federal budget deficit widens as a result of the new tax reform, the US dollar may suffer as a consequence. Goldman Sachs put out a note to investors in November 2017 saying that the US debt is “on track” to reach an “unsustainable” level in coming years. Fed Chair Janet Yellen has also said about the US debt that it is “the type of thing that should keep people awake at night.” Rising debt levels creates uncertainty about the economy, which is generally good for gold and silver.

Negatives

  • Central banks around the world seem committed to raise interest rates in 2018. Rising interest rates are bad for precious metals because it would make it more attractive to put money in the bank.
  • The cryptocurrency bull market is on track to continue, diverting attention and capital away from precious metals as a traditional store of value. However, this one is uncertain, as it may also be considered a positive in the way that the rise of cryptocurrencies brings the inflationary and unsustainable nature of fiat currencies into focus.
  • The US dollar may have hit a bottom in 2017 and trade higher compared to other major fiat currencies going into 2018. A stronger dollar is always bad for precious metals, which are priced in dollars.

Silver chart

When looking at the chart, we can see that silver is back down to were it started the year, which coincides with a major support area where it has turned several times in the past few years.

From a technical perspective, silver has been trading in a triangle pattern on the longer-term weekly chart, with the price now trading very near the lower end of the triangle, adding confluence to our bias that silver will trade up from here.

Silver failed to live up to our prediction from early 2017, and is now even trading well below the level from that time.

A low price by any measure combined with two major technical support levels adds confidence to our trade and makes silver a low risk and potentially high reward trade for 2018.

Depending on your own strategy and investment style, you may want to wait for the price to break out from the current triangle pattern it has been trading in for the past year and a half. You would then give up some of the potential return for an even safer trade. After that, major resistance is found around $17.50 and $18, with lots of upside potential if we can finally break through those levels.

Featured image from Pixabay.

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.



Feedback or Requests?

Continue Reading

Analysis

Long-Term Cryptocurrency Analysis: Look Out Below?

Published

on

After last week’s observation that a major top is in or near in the segment, the Bitcoin surge continued for almost a week, with Thursday’s wild session taking the coin as high as $19,000 (the article uses Bitstamp prices) on some exchanges. While the currency already pulled back by more than 20% the long-term picture is still extremely overbought and a much deeper correction is likely in the coming weeks.

// -- Discuss and ask questions in our community on Workplace.

BTC spiked below $13,000 today, violating the primary weak support at $13,300, with further levels now at $11,300, $10,000 and $9000, but stronger support only found at $8200 and $7700. Next week’s futures launch could cause another jump in trading activity, and volatility is expected to remain very high amid the likely correction.

BTC/USD, Daily Chart Analysis

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

While not all altcoins participated in the, supposedly, last part of the rally, IOTA, Monero, and towards the end of the week Litecoin, also stretched above all conventional targets with IOTA also turning exponential after a deal with Microsoft. The coin exploded by more than 350% before entering an initial sharp correction, breaking the steepest short-term uptrend. 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 altcoins look after the crazy week.

(more…)

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.



Feedback or Requests?

Continue Reading

Trending