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Long-Term Cryptocurrency Analysis: Healing After the Crash

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Cryptocurrencies had a mixed week after the crazy volatility of the previous period, as the largest coins settled down following the weekend surge, and traded sideways for a couple of sessions. Although most of the currencies turned lower towards the end of the week, as we expected, the momentum of the decline is weaker, and a bottoming process is likely under way.

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Bitcoin is trading between the $3500 and $3800 levels this weekend, and after the re-test of the former, the coin is close to providing a buy signal. The currency has a developing base formation near the $3000-$3150 zone, and a test of that level is still possible before the next leg higher.

BTC/USD, Daily Chart Analysis

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Dash has been the strongest major mid the consolidation and it has retained its strength during Friday’s dip as well. Litecoin, Monero, and Ethereum Classic are lagging the broader market, while Ethereum has strengthened significantly in recent days. With the segment being close to the end of the correction, buy signals are expected to pop up in the coming period. Let’s see how the daily charts are shaping up.

Ethereum

ETH/USD, Daily Chart Analysis

Ethereum seems to be forming a higher low near the $250 support zone that we have been monitoring all week. The coin is close to a buy signal concerning the long-term MACD indicator, and a re-test of the crash lows is unlikely now, as strong support is also found at $235. Resistance is ahead jsut abvoe the current rate and near $330.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin has been among the weaker coins this week, as it recovered from the crash, but failed to regain the prior all-time high near $56. LTC is still struggling in a short-term downtrend, but the long-term momentum is now oversold and the re-test of the crahs lows is unlikely. Support is now found at 444 and $38 while resistance is ahead at $51, $56 and $64.

Ripple

XRP/USDT, Daily Chart Analysis

Ripple has also been relatively weak since the crash, although the decline itself wasn’t as deep as in some of the other coins as well. The currency is holding up above the long-term base formation, while still being within the short-term downtrend. We still expect a move towards the $0.30 level in the coming weeks, and investors could still add to their positions. Support is found at $0.16 and around $0.14, while resistance is ahead near $0.22 and $0.26.

Dash

DASH/USD, Daily Chart Analysis

Dash is above the short-term trendline after providing the first buy signal among the majors. The coin is trading below the $360 resistance, and a re-test of $300 is still possible, but traders should be looking for buying opportunities on the short-term dips now, with the MACD being back to neutral. Support below $300 is found at $265 while resistance is ahead near $400.

Ethereum Classic

ETC/USD, Daily Chart Analysis

Ethereum Classic continues to be the weakest major short-term, trading in a steep downtrend after falling below the long-term base formation near $13.50 The coin might remain stuck in the long-term downtrend so traders and investors should wait for some strength before entering new positions, despite the attractive price levels. Strong resistance is ahead around the $16 level as well, while support is only found near $9.

Monero

XMR/USD, Daily Chart Analysis

Monero continues to trade in an orderly correction pattern after the stellar rally, showing relative weakness this week. The MACD just reached neutral and although a dip below $80 is still possible, we don’t expect the coin to trade durably below that level, and investors could already buy the short-term dips. Support is still found at $80 and $68, while resistance is ahead at $100 and $125.

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)”

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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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Analysis

Market Update: Bitcoin at $10,000, Ripple at $1, Ethereum below $1000 as Carnage Continues

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Yesterday’s China induced technical breakdown led to an unmitigated disaster in the crypto segment, as all of the majors crashed, erasing hundreds of billions of market cap in the process. The collapse of the alleged Ponzi scheme of Bitconnect added insult to injury and caused another wave of selling in late trading, driving the price of Bitcoin to $10,000, a bit earlier than expected.

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BTC/USD, 4-Hour Chart Analysis

The most valuable digital currency rebounded as much as 15% after the late-session crash, but the selling pressure remained strong and today BTC briefly traded below yesterday’s low, with most of the majors holding up above the crash low.

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That said, the sell-off is unlikely to be over and volatility is probably here to stay for the week, with violent swings in both directions. The coin is still likely to push lower, with a possibly lengthy bottoming phase, so a quick recovery to the record highs is unlikely, but strong support is found below $10,000 at $9200, $8200, and $7650.

Traders should be aware of the elevated risk in short-term positions here, while long-term investors could slowly accumulate positions on the sell-offs, as the coins are headed to oversold territory.

A Little Perspective

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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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Analysis

Long-Term Cryptocurrency Analysis: Broad Correction Enters Next Phase

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The overbought BTC-led correction that has been the dominating technical process in the cryptocurrency segment in the last month or so continued in earnest today, amid the intensifying regulatory steps concerning the sector. The three-week-long consolidation that followed the initial mini-crash concluded with a sharp sell-off overnight rearranging the long-term charts, while likely kicking off another volatile period.

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While most of the crash lows held up today in early trading in the majors, especially in the case of the late leaders like Ethereum and NEO, some of the relatively weaker coins are already trading below the December minimums. We expect most of the majors to follow Dash and LTC, the weakest of the largest coins, lower and trade below the previous lows, as sentiment will likely swing to a bearish extreme.

The $11,300 level has been in the center of attention throughout the session today and the most valuable coin experienced heavy trading around the level as expected. As the daily MACD is still in neutral territory, the coin could be in for another leg lower, but after the 40% correction and the rather lengthy consolidation, investors could be looking for entry points during the move near the key support levels at $10,000, $9000, and the stronger levels at $8200 and $7700.

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BTC/USD, Daily Chart Analysis

As Ethereum is in a different part of its cycle the long-term momentum readings are still overbought, and that could mean a more protracted correction for the second largest coin. That said, following a multi-month consolidation like the one in Ethereum before, we still expect the token to outperform BTC from a long-term technical standpoint. ETH is now below the short-term trendline, and it’s likely to dip below $1000, and the prior top at $850. Further key levels are found at $740, $625, $575, and near $500.

ETH/USD, Daily Chart Analysis

Let’s see the outlook for the other major altcoins after today’s bloodbath.

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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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Analysis

Crypto Update: Chinese Crackdown Triggers Next Leg of Correction

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The cryptocurrency segment is crashing again, with double-digit losses across the board, and with several coins shedding around 30% in one day amid the widespread and heavy selling. The sell-off was triggered by reports on a new set of measures by the Chinese authorities limiting crypto trading, which added to the still looming South Korea related regulation worries. Bitcoin tested the mini-crash lows at $11,300 today in early trading, dipping slightly below that level before a strong bounce started.

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The most valuable coin is now between two crucial support/resistance lines, with the other ahead at $13,000, and as the downtrend is entering its more mature phase the $10,000 and $9,200 levels could come in play, with a possible dip to the support zone near $7,650.

BTC/USD, Daily Chart Analysis

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Interestingly, the coin is still hovering within the daily range of the crash of December 22nd, and that points to a very active and volatile period ahead near the low at $11,300, as automatic orders will likely get triggered on both sides of the market.

The short-term setup is bearish, and although it’s possible that the primary support level will hold, odds still favor another leg lower, following the exponential run-up at the end of last year that pushed sentiment into bullish extremes.

BTC/USD, 4-Hour Chart Analysis

Altcoins

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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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