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Going down a Stronger Path

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

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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.

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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 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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Analysis

Technical Analysis: NEO Jumps as Broad Markets Turns Lower

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As the new waves of regulatory changes keep on hitting the segment, the major cryptocurrencies are mostly lower today. After the major update of Ethereum, and the recent surge in the price of Bitcoin, choppy conditions developed, with no clear short-term trend in most of the coins.

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NEO is the best performing major today, as it surged back to the $30 level after a frustrating period that was dominated by a downward drift.  The coin is now just below the key resistance level, and it could be ready to test the $34 level, with a further target found at $40. The long-term picture still looks positive, with strong support levels at $27 and $25.

NEO/USDT, Daily Chart Analysis

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Ethereum is in a consolidation after the encouraging rally towards the end of last week, while Bitcoin is also correction after its stellar rise. The two largest coins pulled the rest of the majors lower, while Ripple remained very volatile after touching the $0.30 level yesterday, trading below the $0.26 again.

Litecoin, Dash, Monero, and IOTA are all a bit lower today, while Ethereum Classic found some relative strength, although it remains stuck in a declining short-term trend. All in all, the segment is still in a clear uptrend, so let’s see which coins are the most promising regarding the short-term picture.

(more…)

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Cryptocurrencies

Trade Recommendation: Syscoin

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The market bounced from the support level and broke SMA100. It gave us a trend reversal signal. MACD and DMI support upward movement. We can use the local swing high and a breakout signal for opening long trades. Entry level is 0.000037 with stop orders below the support at 0.000022 level. Profit targets are 0.000050 and 0.000060 levels. If you don’t use leverage, recommended trading volume for this trade is up to 5% from your deposit.

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Market: SYSBTC
Buy: 0.000037
Stop: 0.000022
Profit Targets: 0.000050 and 0.000060

The trading signal is based on Poloniex chart.

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Cryptocurrencies

Trade Recommendation: Lisk

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The price of Lisk diverged with the MACD and RSI, giving us a trend reversal signal. Also, the RSI confirms price reversal from the support level and MACD supports upward movement. DMI allows us to open long trades. It’s a buy signal.

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Pending orders should be placed above SMA50 and the local high at 0.000930 level. Stop orders must be at 0.000780 level. Profit targets are The 0.001200 and 0.001400 resistance levels. If you don’t use leverage, recommended trading volume for this trade is up to 5% from your deposit.

Market: LSKBTC
Buy: 0.000930
Stop: 0.000780
Profit Targets: 0.001200 and 0.001400

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The trading signal is based on Bittrex chart.

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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