Connect with us

Cryptocurrencies

Going down a Stronger Path

Published

on

In one of the biggest turnaround stories in history, it appears that Russia is about to legalize and regulate the Cryptocurrency markets.

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

This very sudden change of stance comes shortly after Vladimir Putin had a brief meeting with Ethereum founder Vitalik Buterin at a major economic event in Russia, with some very important people in attendance.

The news gets even better. Not only does Russia intend to regulate bitcoin and Ethereum, at a later stage they even intend to oversee the tricky ICO markets in which new cryptos are created.

// -- 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 -- //

Exciting times indeed.

@MatiGreenspan
eToro, Senior Market Analyst

Please note: All data, figures & graphs are valid as of July 21st. All trading carries risk. Only risk capital you can afford to lose.

Market Overview

The market reaction to Mario Draghi’s speech yesterday was indeed a surprise, even to Mario Draghi.

Though he was trying really hard to keep his cards close to his chest and not give away his future moves, investors saw right through his poker face and used the speech as confirmation bias of current theories, that the ECB is right in the middle of a taper but won’t admit it.

Draghi did his best to project that the ECB has no immediate plans to wind down the massive stimulus package and even left the door open to increase it later but he could not hide the fact that the economy is indeed going down a stronger path.

In today’s currency wars most economies, including the Euro, are trying to maintain a weak currency to promote exports. The surge in the Euro over the past 24 hours was almost certainly not what Mr. Draghi was going for.

The EURUSD is now about 60 pips away from its strongest level since January of 2015 (yellow line).

On the other hand, Mario probably shouldn’t get all the credit for this move. The Euro strength is also a factor of President Trump crashing the Buck.

At this point, the US Dollar really needs a stronger path…

Bitcoin’s Path

Following last week’s update entitled “Bitcoin’s Brexit Moment,” it seems we have some important progress.

Last night, miners have signaled very strongly to implement SegWit. The headlines today read that BIP91 is locked in!!

Let’s refer back to the flowchart that we posted showing the possible paths.

Link to image: http://imgur.com/a/0nWwn

What this update means is that the BIP148 side is far less likely. From here the most likely path is either down, to implement SegWit with a soft fork, or to the left, implementing SegWit2x with a hard fork to increase the block sizes.

Now, just because miners are signaling for BIP91 is still not a guarantee that it’s going to happen. There are a large number of obstacles in the way and the path is still far from clear. However, at this point, we have a lot more clarity than we did 24 hours ago.

The effect on the price is quite clear. Bitcoin surged on the news coming close to its all time highest level due to the increased amount of clarity to the situation. In fact, over the past week, Bitcoin has erased virtually all of the losses that it saw since the peak on June 12th.

This is the magic of Crypto.

Wishing you an amazing weekend.

This content is provided for information and educational purposes only and should not be considered to be a investment advice or recommendation.

The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.

Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 71 rated postsSenior Market Analyst at Etoro.com.




Feedback or Requests?

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Analysis

Crypto Update: Correction Continues but Uptrend Not in Danger

Published

on

The major cryptocurrencies are consolidating in a choppy range today following yesterday’s sharp pullback, with the total value of the market stabilizing near the $400 billion level. All of the largest coins found support above key support levels, keeping the bullish trend intact, as the overbought readings are being cleared.

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

While the correction will likely continue and our trend model is still only neutral from a short-term perspective in the case of most of the coins, the underlying trend is positive, and we expect the recovery to resume after the dip.

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 -- //

Bitcoin fell below the $9000-$9200 support/resistance zone during the pullback, but it remained above the $8400 level that marks the previous swing high. The MACD indicator is still showing a downswing, but it is now in neutral territory, and the coin could already be ready to resume the uptrend and aggressive traders could enter new positions, using the overnight low as a stop loss level. Below $8400, further support is found near the $7650 level, while targets are ahead at $10,000 and $10,500.

ETH/USD, 4-Hour Chart Analysis

Ethereum found support just below the $600 level and moved back to the vicinity of the $625 support level holding within the steep short-term uptrend.  A break below the trendline is still likely, and a test of the $555 to $575 zone is possible after the strong rally. That said, ETH, one of the leaders of the upswing is expected to resume the recovery after the correction, and long-term investors should hold on to their coins despite the move. Further support is at $500, with targets still ahead near $735, $780, and $845.

EOS Holding Up Well Amid Broad Correction

EOS/USD, 4-Hour Chart Analysis

EOS has been spearheading the broad rally in the segment, and the coin got close to the prior all-time high before the current correction, being the largest coin to do so since January. Although the currency retreated somewhat from the highs, it remains from a short-term perspective and traders should use tight stop losses or reduce their positions as correction risk is high here.

IOTA is the closest to giving a short-term buy signal among the majors, as it began the correction earlier and found strong support near the previous swing high, while there are no negative outliers that would hint on a failed rally off the recent multi-month lows. With that in mind, long-term investors could still use the current correction to boost their altcoin holdings.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
2 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 5 (2 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 234 rated postsTrader 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.




Feedback or Requests?

Continue Reading

Analysis

Ether in Bears’ Hands

Published

on

Ether in Bears' Hands

Ether has been doing great over the last few days, but now it’s declining again, trading at around $646, after hitting a 6-week high at $712.43. Over the last session, Ether confirmed at least two bullish trend lines at $665 and $675, which were successfully tested and broken out today. While Ether was above $700 it had some good chances to recover, but now it is quite doubtful.

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

The bulls quickly gave up the support at $665 today, and now they need to push the price back to $700. This will be the only chance to hit the $712 high again.

Overall, any price above $675 will help Ether recover, while any price below will make it continue declining. $675 is actually the current resistance, while $712 is another one. $644 is the key support, with a longer term one at $574. The MACD keeps on rising and is in the positives, issuing a buy signal. The Stochastic is, on the contrary, giving a sell signal, despite also being in the positive area.

There wasn’t too much news on Ether over the last few days. Still there was some, and what is worth mentioning is the hack of MyEtherWalet, one of the most popular crypto e-wallets out there. The hackers stole 215 coins, which equals $150,000. The scheme was very simple: the thieves hacked the DNS server and then routed users to a phishing website. The issue was quickly spotted and resolved, but the mere fact the e-wallets are still so much sensitive to hacker attacks is troubling.

// -- 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 -- //

Meanwhile, Massachusetts Institute of Technology has recently published a paper where the scientists analyzed three ways of ‘killing’ Bitcoin. The first one is creating a global Fed based currency, the Fedcoin, that, with the time passing, could eliminate all other cryptos, including BTC. The Bank of Canada actually went this way some time ago, by building a crypto network based on Ethereum. The second way is creating a new crypto based on the largest social networks out there, which could enable pushing out BTC from the market, given the volumes and the number of social media users. Finally, the third way is issuing a large number of cryptos, each designed for a particular purpose. This may also greatly affect the top 10 altcoins, too.

Anyway, the crypto market is still closely watched because of the high degree of anonymity and lack of (or no) regulation.

ETH/USD

Author: Dmitriy Gurkovskiy, Chief Analyst at RoboForex

 

Disclaimer

Any forecasts contained herein are based on the authors’ particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
6 votes, average: 3.33 out of 56 votes, average: 3.33 out of 56 votes, average: 3.33 out of 56 votes, average: 3.33 out of 56 votes, average: 3.33 out of 5 (6 votes, average: 3.33 out of 5)
You need to be a registered member to rate this.
Loading...

4.2 stars on average, based on 2 rated postsI have two degrees in Social Psychology and Economy. After graduation I worked as the Head of the Laboratory of Technical and Fundamental Analysis of Financial Markets at The International Institute for Applied Systems Analysis. The experience and skills he gained helped me to realize my potential as an analyst-trader and a portfolio manager in an investment company. At the moment I'm a financial expert, writing for various financial media sources and a Chief Analyst at RoboMarkets.




Feedback or Requests?

Continue Reading

Analysis

Crypto Update: Majors Down by Double Digits as Correction Begins

Published

on

The segment entered a broad correction today in early trading, with the largest currencies erasing a part of their recent lofty gains. The overbought momentum readings that led to short-term sell signals in our trend model are the main reason for the pullback, with no major new catalyst behind the move. The newly established uptrend is not in danger because of the move for now, and we expect the rally to resume after the correction.

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

With the long-term setups being bullish, investors could use the dip to accumulate the majors, while short-term traders should wait until the overbought readings are cleared before re-entering the market. The recently weaker coins, such as BTC and LTC could gain relative strength during the move, as a sign of bullish rotation.

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 -- //

BTC reached an overnight high near $9800, just shy of the key $10,000 level, before turning lower together with the broader market, and the most valuable coin is now testing the $9000-$9200 zone yet again. The bullish long-term setup is clearly intact, but a test of the $8400 level is in the cards during the current move, with further strong support is found in the area above the $7650 level.

ETH/USD, 4-Hour Chart Analysis

Ethereum, which has been leading the market higher, is now back near the $625 support level after triggering a sell signal yesterday, and given the almost 100% rally off the lows, a drop to the $555 to $575 zone is possible in the coming days as the short-term momentum indicators are still in overbought territory. Further support is at $500, while targets ahead are near $735, $780, and $845.

Correlations Spike Higher as Volatility Returns

The majors are falling in a concerted fashion, as usual, but we expect positive divergences to emerge soon, as the bull run will likely resume after the correction. Volatility is also much higher than in recent weeks, so day-traders should be aware of the heightened risks.

IOTA/USD, 4-Hour Chart Analysis

Although the largest digital currencies are all lower, IOTA was the first to provide a short-term sell signal, and the coin which was leading the market higher before could be among the first to form a bottom. That said, traders should wait before entering new positions here, with support zones found near $1.70 and $1.50.

As the correction is dominantly technical in nature, traders and investors should be looking for reversals near the key levels in all of the coins in the coming days, so stay tuned for our detailed technical analysis coming out later on today.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
8 votes, average: 5.00 out of 58 votes, average: 5.00 out of 58 votes, average: 5.00 out of 58 votes, average: 5.00 out of 58 votes, average: 5.00 out of 5 (8 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 234 rated postsTrader 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.




Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending