Connect with us

Analysis

Long-Term Cryptocurrency Analysis: Bitcoin Leads the Charge as Ethereum Breaks-Out

Published

on

The most valuable digital currency shrugged off all the bubble talk and regulatory concerns of the recent period and surged to a new all-time high above $5000, as we expected. The coin almost doubled from the China lows, with a short-term top near the $5900 level but now it is short-term overbought and the long-term picture also looks stretched.

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

That said, more gains are possible (with the final range-projection target at $7000) as the late-coming bulls pile in, but both investors and traders should reduce their holdings as the price advances as correction risk is rising progressively. Short-term support is near $5450 and the 23.6% Fibonacci extension, with further levels at $5000, $4650, and $4400.

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 -- //

Most of the other majors are also showing bullish signs, and the strength of Ethereum is especially encouraging, while Ripple is working its way through the correction that we have been expecting after its surge. Litecoin and Monero are on the rise too, while Dash is still in correction mode, but it’s edging towards a likely break-out as well. As the divergent nature of the bullish trend is still apparent, let’s see where the daily charts stand this weekend.

Ethereum

ETH/USD, Daily Chart Analysis

Ethereum finally showed relative strength this week, and while the all-time high of the coin is still almost 20% above the current price, a re-test of $400 is likely in the current leg higher. The long-term MACD is far from being overbought, and the token might be ready to launch a rally towards the next major resistance at $380, with support found at $300 and $285.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin also cleared a major hurdle this week, rising above the $56 resistance that capped the post-crash recovery before. The next major level is ahead at $64, and we still expect the currency to resume its dominant uptrend. The daily MACD is in neutral territory, with support levels below $56 at $51 and near the $44 level.

Ripple

XRP/USDT, Daily Chart Analysis

Ripple in a volatile short-term correction throughout the week, with a focus on the $0.26 level that we have been monitoring. The coin found support near $0.24, and we still expect a rally towards the $0.30-$0.32 zone in the coming period, with the long-term MACD still being close to neutral, while the short-term uptrend being intact.  Further support is found around the $0.22 level, and just below $0.20.

Dash

DASH/USD, Daily Chart Analysis

Dash continues to lag slightly the broader market after its stellar rise in August, but the correction is likely nearing its end with the MACD being close to a bullish cross. The declining trendline is also just above the current price levels, near the $330 resistance, with another strong level found at $360.  While further sideways price action is possible we don’t expect a durable move below $300 before the next leg higher.

Ethereum Classic

ETC/USD, Daily Chart Analysis

Ethereum Classic is still among the weakest majors and it failed to join this week’s rally, as it got stuck below the short-term resistance near $12.50. Long-term investors could still add to their positions here, but a move above the key $13.50 level would be needed for a confirmed trend change. Strong support is found at the $11 and $9 levels, while further resistance is ahead around $16.

Monero

XMR/USD, Daily Chart Analysis

Monero broke out from the dominant declining trend yesterday after finding strong support just above $80. With the long-term MACD being in neutral territory, the coin could be in for a strong leg higher, with targets at $100, $125, and near the all-time high just above the $150 level.

IOTA

IOTA/USD, Daily Chart Analysis

IOTA showed surprising weakness this week, as it spiked below the key support zone between $0.45 and $0.48. The coin is now back above the $0.45 level, but the declining short-term trend is still intact. That said we still expect the long-term uptrend to resume, with a rally towards $0.64 in the coming weeks. Long-term investors could still add to their positions here, but short-term traders should wait for the coin to show relative strength before entering new positions.

How to Use These Charts?

As we stressed in our article on Bitcoin: “…not all strategies are binary (either holding an asset or not).There are many long- and short-term investment and trading strategies that can be successful in a roaring bull market like the one that the crypto-coin segment is experiencing, but mixing the time-frames and mixing trading and investing (see our article on the topic) could lead to troubles.”

Here is a reminder of some of the possible strategies once again:

  • Buy and hold, without caring about day-to-day (or even month-month) fluctuations
  • Buy and hold a core position and add on the major dips; a very powerful strategy
  • Buy a certain amount every week or month, and even-out your entry price, without the hassle of timing the market
  • Try to catch major turning points to reduce and “re-boost” your position
  • Trade short-term movements with stop-losses, targets, and strict risk management (this is trading not investing)”

Featured image from Shutterstock

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?

2 Comments

2 Comments

  1. Chris G

    October 14, 2017 at 6:09 pm

    litecoin challenging $64 – looking good …

  2. Lakshmana

    October 15, 2017 at 12:55 am

    Mate,

    thank you, really. I appreciate your work and your sharing.

    Take care,

    Roman

You must be logged in to post a comment Login

Leave a Reply

Analysis

Long-Term Cryptocurrency Analysis: Bitcoin Flirts with $8000 as Altcoin Bull Persists

Published

on

Bitcoin’s swift recovery was the main topic of the week, as the most valuable coin not just regained its steep losses, but hit a marginal new high towards the end of the period. The entire segment is experiencing capital inflows as the total value of the coins climbed above $230 billion for the first time ever after finally leaving the vicinity of the $200 billion mark.

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

BTC breached the $8000 level before turning slightly lower on Friday, but despite the severely overbought daily chart, it is still trading near its all-time highs. As the long-term picture still suggests a deeper correction, investors should wait with opening new positions and traders should also control position sizes here. Key support levels are found at $7700, $7000, and $6700, while the recent key break-out level at $5000 still hasn’t been re-tested.

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 -- //

Dash is still the most bullish altcoin from a technical standpoint, despite this week’s short-term correction, as the coin is trading above its prior all-time high, and this weekend, it looks ready to test the break-out high near $500. Support levels are still found at $400, $360, and $330, and as the long-term picture is approaching overbought territory, investors should only hold on to their positions here.

DASH/USD, Daily Chart Analysis

The other major altcoins are also mostly in bullish setups, with some of them already in the latter stages of this cycle, like Monero and IOTA, but elsewhere in the segment, there are still opportunities for both traders and investors. Let’s see the detailed long-term view.

(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

Technical Analysis: Litecoin and NEO Jump as Bitcoin Trades near $8000

Published

on

The cryptocurrency segment continued its bullish run, as the total value of the coins climbed above $230 billion for the first time ever, while Bitcoin also posted marginal new highs. The most valuable currency is still overbought regarding the long-term picture, and we continue to expect a deeper correction in the coming period, despite the recent strong rally. Support levels are still found $7700, $7000, and $6700 while the $8000 level is ahead as a major obstacle.

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

BTC/USD, 4-Hour Chart Analysis

Litecoin has been the most active major besides Bitcoin, as it rallied strongly after breaking out above the key $64 resistance and it breached the next target at $75 before heading below $70 again. The coin remains in bullish long- and short-term patterns, and we expect a move above the major resistance zone ahead with the next target found at $82.50.

// -- 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/USD, 4-Hour Chart Analysis

NEO is showing strength in the second half of the session, while Monero is recovering well from a short-term dip, similarly to IOTA and Ethereum Classic. Ethereum continues to represent stability in the segment, while Ripple failed to build up momentum so far after yesterdays spike higher. With still most of the altcoins being in bullish setups, let’s see the short-term charts.

(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

XRP Looking to Make a Significant Rally

Published

on

The XRP/USD pair went into a deep correction after hitting 0.29490 a month ago. It nosedived to the major support level of 0.19052. The pair consolidated for a few weeks which gave the market the legs to test resistance at 0.22924.

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

Technical indicators show that the pair was ready to breach its immediate resistance, which it did this morning. Now that resistance has broke at 0.22924, it’s time to buy. This successful breakout will take the pair to 0.23997 first and 0.26563 next before hitting the target of 0.26796 which is coincidentally a major resistance level.

Technical indicators hint that the market would most likely be overbought by the time it hits 0.26796. Should it respect the major resistance level, the likelihood of the market turning extremely bearish increases. Therefore, it is recommended to closely watch your trail stops to preserve your gains.  

// -- 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 -- //

Summary of Strategy

Buy: As close to 0.22924

Support: 0.22224 and 0.20081

Target: 0.26796

Stop: If the market breaches 0.20081 as next reliable support is 0.19052

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

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