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Modern Pricing is Getting Aggressive

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Over the weekend, the world’s favorite cryptocurrency has crossed a very important milestone of $9,000 per coin. It didn’t stop there though and many speculate that it could cross the even rounder psychological barrier of $10,000, possibly very soon.

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Here are but a few posts from the some of the more established traders on the eToro network. Feel free to leave your prediction at this link.

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Long term predictions are getting a lot more aggressive as we’ll discover below.

@MatiGreenspan
eToro, Senior Market Analyst

 

Please note: All data, figures & graphs are valid as of November 27th. All trading carries risk. Only risk capital you’re prepared to lose.

Crypto Reminder

I remember the first time I saw an interview on Bloomberg television speaking about Ethereum and other cryptocurrencies, though I don’t recall the exact date I believe it was around April of this year. It was so exciting to finally see some coverage from mainstream financial media.

By now it’s become a thing to include crypto in almost every segment of every show and to get the opinion of just about every guest they have on. Today I even saw a quick price alert from the Financial Times noting Bitcoin’s rise above $9,000. Exciting times indeed!

Though it’s easy to get lost in crypto-land, I would like to gently remind everyone that this is still an extremely risky investment class. Though the industry is seeing massive expansion, blockchain technology is still highly experimental and has not yet stood the test of time.

Therefore, it is prudent to allocate your portfolio accordingly. Most advisors say to keep only a very small portion of your total investments in high risk assets. This is why I keep including ‘boring things’ like geopolitics and other markets in these daily updates.

Market Overview

Still, the crypto-market is still small enough to fly under the radar of traditional markets. At present, it is estimated that the total number of bitcoins in circulation is valued at about 2% of the total amount of gold in the world.

Stock markets are doing great. Not crypto-great but the larger the market the more money needed to push the needle. However, the increasingly low volatility and the markets seeming inability to even pull back a little is no less astounding.

Commodities are also seeing one of their most stable years of recent times. Take a look at gold, which has largely remained within $75 an ounce of the $1,250 level (yellow).

Of course, if and when inflation finally enters the market, gold has a long way to go before coming near the all time highs set at the peak of the financial crisis in 2011.

Oil has also been advancing steadily. OPEC will be meeting this Thursday to try and push the price up even further. Though with Western producers likely to ramp up their output, OPEC will likely settle for even keeping it where it is.

Like many other things. The fundamentals of this market have changed drastically in the last few years. To see $110 again would certainly be a dream come true for many participants but given the recent price action seems increasinly likely to happen.

Thinking Long-term

As the entire cryptocurrency market crosses $300 Billion this morning, the rate of growth continues to accelerate. Over the past week, the rise has averaged $9.5 Billion per day.

All traditional methods of gauging price movements are now off the table. Bitcoin was trading in a very normal looking channel (yellow lines) for most of the year but in the beginning of November it broke out the top of the channel.

Even still, for most of the month, it managed to keep to the laws of nature and formed a resistance (dotted blue) line but even that has been smashed in the past 48 hours.

So, we must search for other ways to look at things. This post on Twitter caught my eye. It was published by a guy who goes by @parabolictrav who claims to have been toying with these type of parabolic charts his entire life. Take a good look…

The implications are self-explanatory. If we continue with this type of price action and nobody finds some inherent flaw, we could be looking at $180k by the end of next year.

Let’s have an awesome day!

This content is provided for information and educational purposes only and should not be considered to be 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 (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 30 rated postsSenior Market Analyst at Etoro.com.




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2 Comments

2 Comments

  1. masterjoe

    November 27, 2017 at 4:01 pm

    I would love to heard hacked.com’s perspective on potential manipulation going on right now, particularly the situation with Tether/Bitfinex and other exchanges which use the Tether token as a placeholder for USD (USDT). I am still fairly new to crypto and have a few other coins, and a small chunk being in BTC. But before I put any more in, this definitely needs to be clarified for my own sanity. Thanks! Happy new member 🙂

  2. Lukasz

    November 27, 2017 at 8:28 pm

    Hey hacked team, sorry but throwing chart from random tweet is bit overdone. Looking at chart we can see somebody trying to draw parabolic chart on parabolic scale?! It means it is double parabolic. I wish we had that, however probably a non realistic dream and mistake of chart maker one yours for republishing.

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Analysis

Technical Analysis: Bitcoin Tests Weekend High as Consolidation Continues

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The major cryptocurrencies entered a shallow correction during the weekend, and most of the coins are still trading below their prior rally highs, with only Ethereum Classic registering new highs. BTC is also very close to its Saturday high, as it is still leading the market higher, outperforming both Ethereum and Ripple.

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Bitcoin is still slightly overbought form a short-term perspective and the correction could still continue in the coming days, with key support zones found near $10,000 and between the $9000 and $9200 levels. That said, the price action in the most valuable coin and the broader segment is still in line with the bullish scenario, and we expect the trend to continue after the correction. Above the $11,300 level further resistance is ahead at $13,000 and $14,250.

BTC/USD, 4-Hour Chart Analysis

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Among the other relatively strong coins, Litecoin and Monero are also holding up well, while NEO is also showing short-term strength, diverging slightly from Ethereum which it has been correlating with in recent weeks.

Monero is also trading close to the weekend highs, as is working its way through the overbought short-term momentum readings. The coin is well above the previously dominant trendline, in clear short-term uptrend. Traders and investors could be looking for entry points during the correction, with strong support at $300, $280, and $240.

XMR/USD, 4-Hour Chart Analysis

(more…)

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 99 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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Bitcoin

Bitcoin Tops $11,000 for the First Time in Three Weeks as Rally Continues

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The price of bitcoin rose more than $1,000 on Monday, reaching its highest level in nearly three weeks as the crypto market extended its recovery from recent lows.

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BTC/USD Price Levels

Bitcoin surged to a session high of $11,274.74 before paring some of those gains in afternoon trade. At the time of writing, the BTC/USD exchange rate was worth $11,140 for a gain of $1,057 or 10.5%. With the gain, bitcoin has recovered nearly 90% from is Feb. 6 low.

At current prices, bitcoin has a total market capitalization of $189 billion, easily tops among cryptocurrencies. More than $7.6 billion worth of BTC was traded over the past 24 hours. The most active exchanges were Bitfinex, OKEx and Binance, according to latest available data from CoinMarketCap.

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The Battle of Sentiment

Bitcoin has added 26% over the past five days as bottom pickers and speculators returned to the market. The gains have been associated with a broader uptick in the cryptocurrency market, which is now worth more than $500 billion. Although the technical indicators suggest that a long-term revival is still in jeopardy, speculators are betting that bitcoin will return to its glory days where record highs were the norm.

That’s exactly what an anonymous trader did earlier this month when bitcoin was in free-fall. As Hacked reported this weekend, an anonymous “bitcoin whale” sunk $400 million on long positions involving BTC. According to Fortune, the majority of the 41,000 tokens were purchased on Feb. 9, with an additional 9,000 purchases made three days later.

Bitcoin has had a long and volatile history of ups and downs, making the recent swings not entirely unusual. However, an analysis of the Relative Strength Index (RSI) suggests that bitcoin prices dipped below key support zones during the most recent selloff, which could signal the presence of bear market conditions. Although the RSI has since recovered, some analysts have indicated that the recent bout of volatility could be a sign of more adverse trading conditions moving forward.

That was the general idea behind an interesting forecast put forward by DataTrek’s Nick Colas, who last December predicted bitcoin’s trading range to be $6,500 to $22,000 this year. He mentioned the likelihood of multiple “crashes,” which he described as large drops of 40% or more. It took less than two months for Colas’ prediction to come to fruition.

The author generally agrees with Colas’ assessment and expects further price volatility in the near future as dramatic falls give rise to even bigger gains. An understanding of investor sentiment explains why this is the case.

Bitcoin, like other digital currencies, is heavily exposed to FUD and FOMO – two acronyms that tell the story of its recent price movements. “Fear, uncertainty and doubt” regarding cryptocurrency regulation was largely responsible for bitcoin’s fall from grace in January and February. As prices bottomed, “fear of missing out” led more traders back into the market. It remains to be seen how this mentality will drive bets in the derivatives market, which offers an other venue for direct exposure to bitcoin.

Disclaimer: The author 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 (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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4.5 stars on average, based on 152 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Analysis

Crypto Update: Market Still on Bullish Track as China, US Closed

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The segment might be in for a long weekend regarding trading activity, as both the US and Chinese traditional markets are closed, for the New Year and Presidents’ Day, respectively. That said, the major coins could still provide important clues about the state of the current uptrend, as the crucial correction that started yesterday is still ongoing, even with some of the currencies showing encouraging relative strength.

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The positive signs that we have been monitoring throughout the rally continue to persist, and as we mentioned yesterday, this pullback is very important in establishing a bullish cycle in the sector after the preceding steep decline.

Correlations remain relatively low, the momentum of the decline stayed muted so far, the leaders of the rally are still behaving well, so bulls could be looking for another leg higher soon.

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BTC/USD, 4-Hour Chart Analysis

Bitcoin is trading slightly below its weekend highs after spiking down towards the $10,000 support yesterday, as the largest coin recovered well following the initial move.

BTC still faces strong resistance near $11,300, with the next major level ahead at $13,000, and as the short-term momentum indicators still have room to correct, the consolidation could continue in the coming days with crucial support below $10,000 found in the $9000-$9200 range.

Ethereum Classic Leading Again

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic continues to spearhead the rally, as the coin already hit a new cycle high above $38 today in early trading, and although the correction, which started before the segment-wide pullback could still continue, the relative strength of the coin is encouraging.

Above the current levels, further resistance is ahead only near $43 and $47, the all-time high for the currency. ETC could be the first major to score a record high after the correction, but long-term investors should be aware that another bullish swing could already carry the coin to overbought momentum readings, with it being already up almost three times off the crash lows, so now we wouldn’t add to long-term holdings.

LTC/USD, 4-Hour Chart Analysis

The other major altcoin are behind ETC in the cycle, with LTC and Monero still being the strongest from a technical perspective. Both coins are still trading in orderly short-term corrections above the previously dominant declining trendline, and they will likely continue to lead the broad rally. Ripple could also be ready for a move after its longer correction, and NEO is still showing surprising in today’s quiet environment, with the rest of the majors being virtually unchanged.

Stay tuned for our detailed technical analysis later on today.

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 99 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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