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Hacking Continues but Bitcoin Looses Dominance

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The hacking continues today with the WannaCry virus claiming more victims across the globe but another type of hack was reported yesterday, this time in Hollywood. It seems that a group of hackers have gotten a hold of the new Pirates of the Caribbean movie and are now holding it for ransom, to be paid in bitcoin.

The CEO of Disney has stated that they will not give into such piracy.

Seriously though, be careful what you click on. Any link or Email attachment could contain a threatening virus. If your friend sends you a chat message that is just a link, ask them what’s in it before you click.

-Mati

Please note: All data, figures & graphs are valid as of May 16th. All trading carries risk. Only risk capital you can afford to lose.

The Politics

The New French President is wasting no time. He’s already chosen a young vibrant Prime Minister and today, on his first day in office, he will be meeting with Angela Merkel. Merkel, of course, is a bit tied up with her own elections but she’s not too worried though. Germany doesn’t have a popular populist candidate threatening to rip apart the Union.

Turkish President Erdogan will be visiting Trump today in the White House. The two have much to discuss. Trump was nice enough to be of the first to congratulate the Turkish dictator on his undemocratic referendum victory but since then has taken a drastic step to arm the Kurdish rebels, who Erdogan considers to be enemies of the state.

Trump has a lot on his mind at the moment. Currently, the administration is taking heavy fire for their alleged Russian connection. Let’s hope that he goes into the Turkish meeting with a clear head. A lot is at stake.

Market Overview

Markets are moving today and it does appear that some semblance of tradable volatility has finally returned. The FTSE 100 in the UK is currently trading at a record high level following some sour inflation data.

Higher than expected inflation in the UK is causing the Pound to drop, which is sending stocks through the roof.

We also saw a fresh record high yesterday in the CAC and the DAX. Very likely encouraged by a vibrant new Europe under Merkel and Macron.

Oil is chugging along, moving further towards the $50 level. The IEA report that came out just now seems to be very positive. Many analysts are starting to feel that the market may be rebalancing The Crude Oil inventories from the USA out tomorrow should give us further confirmation of that, or not.

Bitcoin Dominance

It seems that new digital coins are popping up left and right, but two of them have really been on a rip. Ripple and Ethereum have been growing so fast that they are now threatening the dominance of Bitcoin.

This morning, for the first time ever, the bitcoin dominance meter has dropped below 50%. Meaning, that of the total value currently distributed across all blockchains, bitcoin holds less than half. Here’s the graph.

The scalability issues of bitcoin seem persistent. Though miners were able to clear the queue yesterday, the number of unconfirmed transactions is again above 120,000 this morning.

In eToro, traders have gone from long term investing in Bitcoin to short term trading. In this excellent post from @BigFish, we can see that the trend still seems to be up, but the range is still wide enough to try and catch some downward moves on the short side.

Ethereum on the other hand still has a 99% buy sentiment on the platform and many users believe that another massive leg up is just around the corner.

Let’s have an awesome day!

This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation.
Past performance is not an indication of future results. All trading carries risk. Only risk capital you’re prepared to lose.

Featured image from Shutterstock.

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.

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4.7 stars on average, based on 142 rated postsSenior Market Analyst at Etoro.com.




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Altcoins

GBP Price Prediction: British Pound Jumps on Growing Backing for PM May’s Brexit Deal Ahead of Vote

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  • GBP catches a bid across the board as Prime Minister Theresa May gains ERG support.
  • Despite session gains, GBP/USD technically has vulnerabilities to downside risks, given rising channel formation.

GBP Bulls Awaken

The British pound (GBP) saw a decent jump to the upside on Monday, after an initially very choppy directionless start to the session. The buying swooping into GBP/USD came on the back of a growing number of ministers set to back Prime Minister Theresa May. Specifically, attention was grabbed after closely followed political watcher Robert Peston tweeted that “influential Tory Brexiter MP tells me he and his ERG Brexiter colleagues will be voting with Theresa May and the government all day tomorrow”. This is significant as the ERG is a very influential Brexit research group, which was previously plotting ways to oust PM May.

GBP/USD jumped to its highest level seen since 22nd November. The pair had seen an initial spike of 85 pips to the upside. Gains were capped however by a known strong area of supply; this can be seen tracking from 1.2870 up to 1.2930. The price has not been above here since 15th November 2018, and the bulls having faltered here on several occasions attempting to move above. Should GBP/USD manage to move above this zone, it would be a very strong signal that it is out of the bear market. Technically, this would be largely attractive for inviting further buyers to come in.

A detailed analysis of the upcoming Brexit vote can be viewed here: This Tuesday Will Be Zero Hour For the British Pound

Price Remains Confined Within Channel

GBP/USD daily chart. Price action remains within the confinements of a rising channel.

Another key technical observation is an ascending channel formation, which can be viewed via the daily chart. The GBP/USD pair has been moving within this since 12th December 2018, having gained over 400 pips since it took shape. The daily candle today briefly spiked above the upper tracking trend line of the pattern. However, the price was squeezed back within the confinements of this. Touted profit-taking kicked in towards the close of the European markets. This is not too surprising, as participants maintain an element of caution heading into the high-profile vote.

Given the nature of the above-described formation, should it play out to the textbook, vulnerabilities still point to a breakout south. This move would be heavily assisted should the British Prime Minister lose the meaningful vote on Tuesday. In terms of key levels to note, to the upside, a break above the 1.2930 supply zone will invite large buying pressure. To the downside, a breach of 1.2650, the lower support of the channel, will open flood gates to selling.

Featured image courtesy of Shutterstock.

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.

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4.6 stars on average, based on 106 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Analysis

Crypto Update: 5 Altcoins to Watch This Week

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Just as it appeared that the crypto market was finally finding its footing, Bitcoin (BTC/USD) suddenly crashed hard last week. The bearish price action made a lot of investors jittery. Consequently, many participants either took profits or cut their losses on their altcoins positions. This drove numerous altcoins back to their support areas.

Last week’s price drop was a gentle reminder that we are still in a bear market. That’s why this week, we look at coins that are showing signs of strength while trading near firm support levels. Here are the five altcoins to watch this week.

Ethereum (ETH/BTC)

Ethereum corrected right after tapping the 200-day moving average. At that point, the market was showing signs of bullish exhaustion. You can see a bearish divergence on the daily RSI. Plus, volume was weakening while the price kept rising. Those who saw the writings on the wall managed to take profits at the top.

Daily chart of ETH/BTC

The good news is that Ethereum has an opportunity to keep its bullish momentum intact. Defending support of 0.03157 would enable the market to establish a bullish higher low setup. Bulls have a very good chance to preserve the support because both the 50-day MA and the 100-day MA are crawling around that level. They will act as additional support levels to help Ethereum stay above 0.03157.

Should bulls fail to defend 0.03157, the market’s sentiment will likely turn from slightly bullish to neutral. We can then expect Ethereum to drop back down to 0.026746.

Binance Coin (BNB/BTC)

Binance Coin refuses to follow the footsteps of Bitcoin. Even though its market structure closely resembled that of Bitcoin’s, the results were different. After apparently breaking down from a descending triangle in November 2018, Binance Coin rose from the dead and reclaimed support of 0.0014 in December.

The fakeout attracted bulls who were staying on the sidelines. As a result, Binance Coin took out the diagonal resistance of the triangle.

Daily chart of BNB/BTC

With the diagonal resistance out of the picture, BNB/BTC appears to have regained its bullish tone. If you’re looking to place long positions in the market, you might want to be patient and buy as close to 0.00146 as possible. That’s where both the 50-day moving average and the 100-day moving average are crawling.

Invalidation of this view comes if BNB/BTC trades below 0.0014.

NEM (XEM/BTC)

NEM’s corrective period may be finally coming to an end. While the market did breach the initial support of 0.0000176, it looks like it is establishing a new base at 0.00001544.

Daily chart of NEM/BTC

If market participants can keep XEM/BTC above 0.00001544, it will send a strong message that the NEM remains bullish. After all, the market would have just established its first pair of a higher high and a higher low in months.

On the other hand, if XEM/BTC goes below 0.00001544, the sentiment will likely shift from bullish to neutral.

0x (ZRX/BTC)

While 0x remains in a downtrend, there might be an opportunity to bottom-pick the market. With 0x creating a falling wedge on the daily chart as it approaches key support area of 0.000073, it might be possible to profit from a dead-cat bounce. Should ZRX/BTC break out from the falling wedge, the initial target is 0.0001.

Daily chart of ZRX/BTC

Keep in mind that 0x is still in a downtrend so have tight stop losses if you’re planning to take on this trade.

Bitcoin Gold (BTG/BTC)

Bitcoin Gold appears to be establishing a new base at 0.0033 support. Market participants have been accumulating positions around this area for over a month. If bulls can hang on for another week or so, Bitcoin Gold may just establish a bullish higher low. This will enable the market to trend higher.

Daily chart of BTG/BTC

A bullish higher low setup might inspire bulls to tap resistance of 0.005564. Otherwise, Bitcoin Gold might revisit lows of 0.00256.

Bottom Line

Last week’s crash has driven many altcoins near key support areas. Nevertheless, this gives us a chance to look at coins that are showing signs of strength and are trading near key support areas. There’s a lot of uncertainty going on in the market so make sure to place tight stop losses if you’re planning to enter any trade.

 

Featured image courtesy of Shutterstock.

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.

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3.8 stars on average, based on 308 rated postsKiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.




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Analysis

Crypto Update: Coins Hit New Lows But Bearish Momentum Weakens

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The cryptocurrency segment continues to be in control of sellers, with the major coins hitting multi-week lows over the weekend. On a positive note, the momentum of the latest sell-off has been weak, and although several top coins violated key support levels, like Bitcoin, Litecoin, and Ethereum, the breakdown didn’t lead to severe losses.

That said, the short-term downtrend remains dominant and given the still bearish long-term picture, traders and investors still shouldn’t enter positions here, but a failed breakdown pattern could mean that the counter-trend rally is still intact. Correlations remain very high in the segment, confirming the bearish environment, and we would need more technical strength to consider new positions in the top coins.

ETH/USD, 4-Hour Chart Analysis

Ethereum plunged below the $120 support as well, continuing the short-term downtrend, and the previously leading coin still struggles to retain its relative strength. While failed break-out pattern remains a possibility here, bearish risks are still high, and test of the bear market lows still seems likely in the coming months.

Bulls should be looking for a quick recovery above the $130 level, but barring that, the coin will remain on sell signals on both time-frames in our trend model. Further support below $120 is found between $95 and $100, while resistance is ahead at $160 and near $180.

BTC/USD, 4-Hour Chart Analysis

Bitcoin broke below the key $3600 level amid the broad dip, but the coin didn’t gather bearish momentum, and it remains within striking distance of the resistance zone. BTC is still on a neutral short-term signal thanks to its relative stability, and a recovery above $3850 would be a positive sign for bulls that could re-trigger a buy short-term buy signal.

For now, traders and investors still shouldn’t enter positions here, considering the hostile long-term setup, with a test of the bear market lows still being likely. Key long-term support is found near the $3000 level, with further another weaker zone near $3250, and with resistance ahead between $4000 and $4050, and $4450.

Altcoins Testing Key Levels

LTC/USD, 4-Hour Chart Analysis

Litecoin violated the $30-$30.50 support zone, but it remains close to the lower end of that range and the momentum of the move hasn’t been disastrous. That said, the coin is still on clear sell signals on both time-frames, but further signs of strength could mean that the broader counter-trend move will resume. The $30-$30.50 zone remains in the center of attention, with strong resistance ahead near $34.50, $38, and $44 and with further support found near $26 and $23.

XRP/USDT, 4-Hour Chart Analysis

Despite its recent technical weakness and the fact that it fell below the $0.32 support level, Ripple held up well since yesterday’s plunge, and that is a positive sign for the whole segment, even though the coin is in downtrends on all time-frames. The $0.30 support and the $0.3550 resistance levels could be in play in the coming week, but for now, traders and investors should still stay away from XRP, with further resistance ahead near $0.3750 and in the key long-term zone between $0.42 and $0.46.

IOT/USD, 4-Hour Chart Analysis

IOTA, which has been one of the leaders of the counter-trend move also failed to hold up above the $0.3150 and $0.30 levels, and until we see signs of technical strength, the coin remains on sell signals on all time-frames in our trend model. A move to the support zone near $0.24 could be ahead, while a quick recovery above $0.3150 could lead to the formation of a bear-trap pattern. Further resistance is ahead near $0.35, while key support is found near $0.20.

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.

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4.7 stars on average, based on 440 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.




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