Connect with us

Bitcoin

She’s Gonna Blow!

Published

on

The meteoric rise of bitcoin has accelerated yet again as the world’s number one digital currency broke a new record raising $2299 a coin in a 24-hour window.

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

Blogging about the price of bitcoin can be extremely frustrating at times with many articles becoming irrelevant even before they ever get to print. I’ve seen this before myself with several articles I was collaborating on but it seems to be an industry-wide thing.

Imagine, somebody from Reuters worked very hard on this article announcing bitcoin’s rise above $13,000 and within an hour of the time it was published the price had already breached $14,000.

For me, I’ll always do my best to give you the causes behind the moves and whenever I can inform my readers what could likely drive the prices going forward. For all we know, a major pullback or an additional surge may have already happened by the time you read this.

// -- 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 -- //

@MatiGreenspan
eToro, Senior Market Analyst

 

Please note: All data, figures & graphs are valid as of December 7th. All trading carries risk. Only risk capital you’re prepared to lose.

Market Overview

Excitement is hardly the word to use but we’ll go with that for now. Nowhere is it more exciting than in South Korea. At the moment, a single bitcoin on the South korean exchange Bithumb is going for 19,391,000 KRW ($17,645 USD), which is 17% higher than the price listed on eToro at the time of this writing.

Recent estimates state that 21% of all global BTC volume are done in Korean Won. So what makes bitcoin so exciting for Korean traders?

I mean, aside from the same thing that makes it exciting for the rest of us. The idea of replacing our monetary system to be fairer and less reliant on inefficient and at times irresponsible government applies to South Korea even more than the rest of us for two reasons.

One, the obvious, they’re watching what’s happening in North Korea where the government has completely taken over the country. So they have a far fresher perception of what can happen when governments go bad.

Two, after recently going through a political meltdown and ousting the former President Park Geun-Hye, and after watching the CEO of the Samsung go to prison on corruption charges, their faith in the system is currently at a justifiable all time low.

Third, investing in bitcoin requires a certain appetite for risk that isn’t present everywhere but seems to be present just South of Kim Jong Un’s border.

Regulators in South Korea are doing their best to get a handle on the situation but are visibly struggling. They’ve already banned ICOs in September and in the last 24 hours have banned bitcoin futures trading.

Bitcoin futures may be more dangerous than we thought but we’ll explore that in tomorrow’s update before these potentially destructive futures markets hit Wall Street.

Network Status

This week we’ve been talking a lot about blockchain capacity both in Bitcoin and Ethereum. Both blockchains seem to be testing their limits at this moment in time.

The Ethereum network is still being plagued by cats. The overnight sensation of the new viral dApp Crypto-kitties currently accounts for about 20% of the transactions on the network.

Bitcoin on the other hand is becoming a victim of its own success. The number of transactions waiting for confirmation is now at a dangerous high of 136,000.

And the average transaction rate over the last 7 days is now at an all-time high of 4.6 per second.

It’s still possible to speed up transactions on both networks by paying a higher miner fee. However, those paying the regular amount will need to be patient and could experience severe delays.

The good news is, we don’t seem to be at the point where transactions are being rejected on a mass scale. So even though the capacity of the networks and the patience of alternative investors are being tested, we haven’t quite reached any hard limits just yet.

Ethereum founder Vitalik Buterin has been working on the Constantinople upgrade for some time and we hope that it comes through soon. For bitcoin, the problem is a bit messier. The lack of centralized leadership makes it a lot harder for any meaningful solutions. However, some analysts feel that as the SegWit solution is adopted by more miners it should increase the capacity somewhat.

Contrarian Thinking

Many traders like to try and take an opposite view on what’s happening and find the opportunities that may be hiding behind the FOMO.

For example, popular cryptotrader @Liamdavies, who’s made 170% for himself and his 1,437 copiers over the last year, has posted this trading thought on XRP.

For short term traders, finding this type of support line could present an excellent opportunity. To highlight Liam’s point, here’s a chart of XRP from the beginning of the recent boom.

The idea is that an order with a stop loss just under the support line has a lot more to gain if it goes in your favor than it does to lose if it doesn’t. Meaning, if it hits your stop loss, no big deal, it’s a small loss, but if it turns around now, in retrospect it will have been an excellent entry point.

In addition, over the last week the entire market has been dominated by Bitcoin, with BTC taking back a lot of the market share from the other currencies. So, if we do see a pullback in bitcoin for any reason, it may be a good idea to get in on some of the alts.

Let’s have a spectacular day ahead!

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.

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 32 rated postsSenior Market Analyst at Etoro.com.




Feedback or Requests?

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Analysis

Crypto Update: Bitcoin Tests $10,000 amid Correction

Published

on

The altcoin-triggered correction continued in the segment overnight amid the renewed sell-off in global stocks, with a slight bounce in Asian trading and a subsequent dip after the European open. The major coins are all down by more than 5% since yesterday, but for now, the momentum of the move is not worrying, and most importantly the leadership of the rally is holding up relatively well.

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

Bitcoin bounced off the key $10,000 level, the $200 support zone held in Litecoin, Monero is still in its consolidation pattern above $280, and only Dash showed deterioration since yesterday, but the long-term picture remains encouraging even in Dash’s case.

LTC/USD, 4-Hour 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 -- //

The above-mentioned levels in the technically strongest coins are not even the last line of defense for bulls, as the preceding strong rally left several key levels behind which could serve as the basis of the next leg higher.

Also, we expect the currently negatively diverging coins, led by Ethereum and Ripple, to start showing strength as the short-term momentum reaches oversold territory, and good entry points might be close both for traders and long-term investors.

BTC/USD, 4-Hour Chart Analysis

BTC touched the $10,000 support level, but for now, the technically more important $9000-$9200 zone is not in danger, and the short-term momentum indicators are already neutral thanks to the correction.

That said, more downside is likely in the coming days, but investors and traders should be looking for reversals to enter new positions, as we expect the uptrend to continue, with targets ahead at $11,300, $13,000 and $14,250.

Ethereum Provides a Glimmer of Hope

ETH/USD, 4-Hour Chart Analysis

Although bears are still in control regarding the short-term picture in the second largest coin, this morning ETH didn’t hit a significant new swing low, and that could be the first sign of relative strength, with the $845 support not far above the current price level, and the MACD indicator is already near oversold territory.

Despite the slightly positive sign, short-term traders should remain defensive concerning the weaker coins, while long-term investors should still accumulate the currencies on the dips.

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.

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.
9 votes, average: 4.89 out of 59 votes, average: 4.89 out of 59 votes, average: 4.89 out of 59 votes, average: 4.89 out of 59 votes, average: 4.89 out of 5 (9 votes, average: 4.89 out of 5)
You need to be a registered member to rate this.
Loading...

4.7 stars on average, based on 107 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

Altcoins

Cryptocurrency Market Enters Corrective Phase as Majors Retreat from Recent Highs

Published

on

The cryptocurrency market declined across the board Thursday, as bitcoin, Ethereum and the rest of the major altcoins retreated from recent highs.

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

Crypto Market Backpedals

After peaking above $518 billion on Saturday, the market capitalization for all cryptocurrencies has fallen to $469 billion, based on latest data from CoinMarketCap. That represents a decline of more than 9%. Trade volume across all digital assets approached $24 billion over the past 24 hours.

The latest drop in total coin value seems to have coincided with broader uptake in bitcoin, the world’s most popular cryptocurrency both in terms of market cap and trade volume. Bitcoin now accounts for more than 39% of the total market,  a near seven-point increase over last month’s lows.

// -- 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 -- //

Bitcoin made a strong move above $11,000 on Wednesday, eventually hitting a three-week high of $11,329. As we wrote Wednesday, bitcoin in particular seems to be benefiting from a myriad of market forces ranging from favorable regulations to improved investor sentiment.

At the time of writing, the cryptocurrency was worth $10,901.

Other major cryptos were also down at the start of Thursday trading, with Ethereum slipping 3.6% to $864.83. Ripple’s XRP token declined 2.7% to $1.04, while bitcoin cash fell 4.3% to $1,336.50.

Even Litecoin, a currency that has witnessed a 50% surge this week, fell more than 3% to $219.43.

Paul Singer Calls Cryptocurrencies a Huge Scam

Elliot Management, a multi-billion-dollar hedge fund headed by Paul Singer, recently came out with a report calling cryptocurrencies “one of the most brilliant scams in history.” It added that “FOMO (fear of missing out) has solidly trumped WTHIT (what the hell is this??).”

In the cryptocurrency world, talk is incredibly cheap, and arguments from authority don’t hold much credence. Although Elliott dedicated three pages to cryptocurrencies, there doesn’t seem to be a strong argument against cryptocurrencies. (Calling cryptos “nothing except the marketing power of inventors, financiers and others who love the idea of buying a black box…” is not an argument.)

That being said, the fund’s comments may have resonated with speculators who are already on the fence about re-entering the market. After all, the daily news headlines play a huge role in shaping investor sentiment, regardless of whether those headlines are true. This has been demonstrated time and time again by regulatory developments in nations such as South Korea and India.

As Singer’s comments clearly show, there’s still plenty of FUD (fear, uncertainty and doubt) driving the cryptocurrency market. This is unlikely to change soon even as bitcoin and the technology that underlies it enjoys greater mainstream adoption.

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.

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.
5 votes, average: 4.60 out of 55 votes, average: 4.60 out of 55 votes, average: 4.60 out of 55 votes, average: 4.60 out of 55 votes, average: 4.60 out of 5 (5 votes, average: 4.60 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 161 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.




Feedback or Requests?

Continue Reading

Analysis

Technical Analysis: Altcoins Lead Markets Lower as Bitcoin Still Looks Strong

Published

on

All of the largest digital currencies are in the red today, following heavy overnight selling, a bounce in European trading, and another round of losses around the US market open. Ethereum is still in the worst short-term shape among the giants of the segment, and that’s in line with the slightly delayed cycle of the coin that we have been monitoring.

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

The technical divergence between the leaders of the market and the laggards yesterday is still dominant with the 6 coins that spearhead the rally, BTC, LTC, NEO, Dash, Monero, and ETC, are still in much more bullish setups than the rest of the majors.

Bitcoin is also well below its recent rally highs after breaking down under the key $11,300 level, and a test of the $10,000 support now looks likely, while a move to the $9000-$9200 zone would still keep the rising trend intact.


BTC/USD, 4-Hour 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 -- //

The overbought short-term momentum readings are being cleared, and despite the slightly bearish volume patterns, we expect the coin to continue its new bullish cycle after the correction, with targets above $11,300 ahead at $13,000 and $14,250.

ETH/USD, 4-Hour Chart Analysis

Ethereum is now trading below the key $845 level as the correction continues, as we expected, and the coin remains stuck in the dominant declining trend, for now. We still expect a breakout in the coming weeks, but a test of the $740 level is possible before another rally. Further support below that is at $625 and $575 and we don’t expect a new low in the coin, so investors could still accumulate the coin near the main levels.

(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.

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.
10 votes, average: 5.00 out of 510 votes, average: 5.00 out of 510 votes, average: 5.00 out of 510 votes, average: 5.00 out of 510 votes, average: 5.00 out of 5 (10 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.7 stars on average, based on 107 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

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