Connect with us

Analysis

Long-Term Cryptocurrency Analysis: Coins Flatline after Choppy Week

Published

on

The crypto segment is having one of the calmest weekends in recent memory, as most of the major coins are trading in narrow ranges and low volumes. NEO and IOTA are down meaningfully in the quiet environment, with the latter being among the most volatile currencies all week long. Bitcoin Cash registered a violent bounce in recent days, as Bitcoin Gold fizzled, while BTC had volatile swings itself as well.

The most valuable coin got very close to its all-time high in the middle of the week, but it’s now trading back near the primary short-term support. As the long-term remains stretched, and we expect a deeper correction soon, we urge investors to be patient with opening new positions, but traders could still play the short-term trend. Major support levels are found at $5400, $5000, and $4650.

BTC/USD, Daily Chart Analysis

The rest of the market is in a slightly bearish spell, but the positive long-term trends are mostly intact with only Ethereum Classic showing worrying weakness from a technical standpoint.  Ethereum is still stuck near $300, while XRP is back near the midpoint of its long-term trading range, and Litecoin is still relatively strong, trading near the $56 level. Monero and Dash are also among the long-term leaders among the major altcoins, but they are still lagging Bitcoin, with the dominance of the largest coin still standing at 57%. Let’s see how the long-term charts evolved since last week.

Ethereum

ETH/USD, Daily Chart Analysis

Ethereum is back in the trading range that dominated its market except of the Byzantium spike, and ht e$300 support/resistance level remains in focus. The MACD is still clearly in neutral territory, and but the rising long-term trend is intact and we expect a move above the current range in the coming weeks, although Bitcoin might cause volatility in the segment. Support below $300 is found at $285 and $250 while resistance is ahead $315 and between $330 and $350.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin drifted lower with declining volatility throughout the week, but the dominant short-term consolidation pattern remained intact and the long-term picture is unchanged as well. Although the $56 level is still in the center of attention, a move below $51 or above $64 would be needed to confirm the next major swing. We expect the pattern to resolve in a bullish way, with the next target being at $75.

Ripple

XRP/USDT, Daily Chart Analysis

Ripple had been the most volatile major before this week, but the coin settled down near $0.20 as the bearish momentum faded away. The currency is still in a short-term downtrend, despite the positive long-term outlook, and the long-standing broad range is intact. Support levels are still near the current rate, and around $0.18 and $0.16, while resistance is ahead near $0.22 and $0.26.

Dash

DASH/USD, Daily Chart Analysis

Dash had a mixed week, as the coin’s early relative strength turned into a slight weakness towards the end of the period. That said, the currency remains in a strong long-term uptrend while trading in a narrowing consolidation pattern since the end of August. We expect another leg higher in the trend soon, with key support at $265, and targets ahead at $330, $360, and near $400.

Ethereum Classic

ETC/USD, Daily Chart Analysis

Ethereum Classic has been experiencing hectic trading lately, as the selling pressure kept the coin in a short-term downtrend. The long-term technical picture is also questionable in the light of the persistent weakness, but for now, the $9 level held up ETC.  Short-term traders should still wait with new positions until a bullish trend change, while investors are advised to hold on to their positions here. Resistance levels are still ahead near $11, $12.50, and around the $13.50 level.

Monero

XMR/USD, Daily Chart Analysis

The volatility in Monero’s market followed the broader tendency and declined considerably after a moiré busy start of the week. XMR is still clearly inside a trading range between $80 and $100, and the coin is well above its early-summer highs, being among the strongest majors regarding the long-term picture. We expect a move above the current range in the coming weeks, with further resistance ahead near $125 and just above the $150 level.

IOTA

IOTA/USD, Daily Chart Analysis

IOTA was the most volatile major this week by a wide margin, and the coin continues to trade actively. Despite the late-week weakness, the coin is well above last week’s low and the key $0.35 level, probably signaling a bullish trend change. For now, the declining trend remains intact, with strong resistance ahead in the $0.45-$0.48 zone, and above that at $0.56 and $0.64.

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 (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 293 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?

Analysis

Crypto Update: Technical Setup Unchanged Despite Encouraging Rally

Published

on

Cryptocurrency bulls could breathe a sigh of relief on Monday as the secular uptrend in the most valuable coin got saved yet again, as BTC rallied above $6500 for the first time in a week after a low-volume consolidation period just above the $6000 level. All of the majors joined the rally as correlations remain very high in the segment, and the market recovered 10% on average with the total market cap of the coins getting back to $275 billion.

Despite the rally, the top coins are still stuck under key resistance levels, as the recent swing highs are still above the current prices and from a short-term standpoint, the downtrend is still intact. Until a move above the crucial levels, traders should still stay away from opening new positions, as odds continue to favor another test of the June lows.

That said, given the still intact long-term bullish setups in the most important digital currencies and the very negative sentiment that developed thanks to the long declining trend, a short-term trend change could be ahead. A bullish leadership is still yet to form, although Bitcoin’s short-term relative strength is a positive sign.

BTC/USD, 4-Hour Chart Analysis

In BTC’s market, all eyes are once again on the $6750-$7000 zone that has capped the really attempts for a month now, and below that zone, the largest coin remains on a short-term sell signal. As the coin didn’t hit a lower low, a bullish pattern could form in the coming weeks, but until it remains in the current trading range, traders shouldn’t enter the market. Support above the long-term $5850 level is found at $6500, $6275, and $6000 while further resistance is ahead at $7350.

Altcoins Slightly Lagging Behind Amid Broad Rally

LTC/USD, 4-Hour Chart Analysis

The major altcoins are in very similar short-term technical setups, thanks to the strong correlation between the coins, and the most bearish coins, like Litecoin, NEO, Monero, and Dash are still below the key support levels that they violated in June. While the previous lows held up this weekend, investors should still remain defensive with regards to the relatively weak currencies.

LTC/USD, 4-Hour Chart Analysis

That still points to a dangerous long-term setup in the segment, and further technical progress is needed to switch the segment-wide trend. Ethereum remains below the key $500 level, although the coin managed to rally above the $475 level yet again, despite being relatively weak from a short-term perspective compared to BTC.

A rally above $500 would be a very positive short-term sign for ETH, and it could trigger a move to the $555-$575 zone. Primary support is at $450, with further levels at $420, $400, $380, and $360, and below $500 the short-term sell signal is intact.

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: 3.00 out of 52 votes, average: 3.00 out of 52 votes, average: 3.00 out of 52 votes, average: 3.00 out of 52 votes, average: 3.00 out of 5 (2 votes, average: 3.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 293 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

US Opens New Front in Trade War as Oil Plunges

Published

on

Financial markets are relatively calm today, with most of the major stock benchmarks being virtually unchanged after the weekend. The energy segment is experiencing the most activity as the volatile correction in crude oil prices continues. Besides that, the Euro’s relative strength is notable, but summer trading conditions remain dominant across the board, with low volumes and choppy intraday price action in most of the asset classes.

Shanghai Composite, 4-Hour Chart Analysis

There seems to be no stopping in the global escalation of trade tensions, as amid the Helsinki meeting between Trump and Putin, the US launched an official probe concerning the retaliatory tariffs of its largest trade partners. The move could deepen the standoff not just between the US and China, but the EU and its other allies as well, and global growth is already weakening, so with further trade troubles growth could grind to a halt.

S&P 500 Futures, 4-Hour Chart Analysis

While global stocks are still well off their highs, and Chinese equities remain in bear market territory, the main US indices are holding on to their recent gains, with the Nasdaq being the by far the strongest benchmark globally. The slightly weaker S&P 500 is also trading at a 4-month high despite trade war fears, and as the first earnings reports of the second quarter were slightly better than expected, with Bank of America beating today before the bell, bulls are still in control on Wall Street.

As for economic news, the much awaited US Retail Sales report delivered a small positive surprise, and last month’s figures were also revised higher. The report helped risk assets during the US session, even as the disappointing Chinese Industrial Production number weighed on investors sentiment earlier on.

Dollar Index, 4-Hour Chart Analysis

Despite the bullish numbers, the Dollar lost a bit of ground against its major peers, although forex markets were less active today than recently and the most traded pairs traded in relatively tight ranges after Friday’s hectic session.

Oil Back Below $70 per Barrel as Commodities Remain Weak

WTI Crude Oil, 4-Hour Chart Analysis

Crude oil prices are sharply lower yet again, with the WTI contract leading the way lower as tight short-term supply conditions got better in Canada, and the general weakness in the global commodity segment infected the market oil. The IMF’s report on weakening global growth, and the chatter about the release of some of the global strategic oil reserves also weighed on oil, and the WTI contract is now at $68 per barrel after trading as high as $75 just one week ago.

Copper, 4-Hour Chart Analysis

Elsewhere in the commodity space, it has been a quiet Monday session, with gold drifting slightly lower after a weak rally in early trading, as selling pressure is still apparent among precious metals. Copper, which also has been suffering in recent weeks as Chinese assets got slammed lower, is still consolidating above the strong long-term support zone that we pointed out last week.

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.

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.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 293 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

Crypto Update: Qtum’s Price Contraction Hints at a Massive Bull Run

Published

on

Qtum/Bitcoin (QTUM/BTC) is one of the biggest losers in cryptocurrency investing. It shred more than 76% of its value in seven months when it dropped to 0.001192 on July 12. With such a sharp slide, there’s no denying that the market is deep in bear territory. Nevertheless, long-term investors can find hope in the market’s habit of rallying after a deflating bear run.

In this article, we show how Qtum/Bitcoin uses price contractions and oversold conditions to stage massive rallies.

Falling Wedge in the Last Quarter of 2017

QTUM/BTC was bearish in September, October and November of 2017. The pair traded in a wide range between September to late October 2017 while generating lower highs and lower lows. However, the range got more and more tight until December 14. In three and a half months, the pair created a falling wedge.

2017 Fourth Quarter Daily chart of QTUM/BTC

The pair was able to break out of the pattern on December 15 after it recovered from extreme oversold readings. The selling relief combined with price contraction conspired to ignite a rally that rewarded bottom pickers with over 300% profits in less than a month.

Falling Wedge in the First Quarter of 2018

Gravity also works in financial markets. Often, the case is the greater the rise, the harder the fall.

As QTUM/BTC pulled back from its meteoric rise, the pair created another falling wedge structure on the daily chart. The market plummeted until the trading range was so tightly squeezed that there was no more room to go but up. Again, the market flashed extreme oversold readings before breaking out of the pattern.

2018 First Quarter Daily chart of QTUM/BTC

Falling Wedges in the Third Quarter of 2018

History repeats itself; that’s one of the main principles of technical analysis. So far, QTUM/BTC adheres to that tenet. It appears to be creating a third falling wedge as it respects key support of 0.0012. While doing so, it has recently given off extreme oversold signals.

2018 Third Quarter Daily chart of QTUM/BTC

But wait! There’s more!

A broader and more in-depth look at the daily chart of QTUM/BTC reveals that all three falling wedges mentioned above appear to be parts of a massive falling wedge. What’s astonishing is that the narrowest point of this gigantic falling wedge is at key support of 0.0012.

Daily chart of QTUM/BTC

Based on previous price movements, it is not difficult to imagine that this extreme price contraction can be the catalyst of a massive bull run.

Bottom Line

QTUM/BTC is in deep bear territory. However, history tells us that the pair might be out of the woods real soon. The formation of three falling wedge patterns reveal that the market has a habit of rallying after extreme price contraction. More importantly, the emergence of the large falling wedge on the daily chart suggests that QTUM/BTC may be on the cusp of a massive bull run.

 

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.
1 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 51 vote, average: 4.00 out of 5 (1 votes, average: 4.00 out of 5)
You need to be a registered member to rate this.
Loading...

3.7 stars on average, based on 192 rated postsKiril is a financial professional with 4+ 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.




Feedback or Requests?

Continue Reading

5 of 15 Seats Available

Learn more here.

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