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Some BIG Numbers Affecting Markets

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There are a bunch of big numbers being thrown around the markets today.

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Let’s take a look at some of them and how they can create some moves.

Mati Greenspan
eToro, Senior Market Analyst

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

Market Overview

Warm congratulations to the government of Great Britain for pulling itself together. Theresa May managed to strike a deal yesterday with the Northern Irish DUP giving her the 10 magic seats needed to form a majority government.

The price…

Infrastructure spending in Northern Ireland: £1 Billion

The GBP fall since the election: 2.5 cents on the Dollar

Staying in the seat of power: Priceless

The number 1 Billion also came up in Alphabet today. EU courts are set to deliver a verdict on Google’s high-profile search manipulation case. The expected result is a fine of €1 Billion.

Looking past the number, people will want to know more specifically how the EU will impose further infractions of SEM (search engine manipulation) in the future.

22,000,000

Donald Trump’s latest plan to repeal and replace Obamacare will reportedly leave 22 Million Americans without health insurance over the next decade.

This number was a bit too large for many politicians to swallow and several members of the Republican party have already backed out.

Though health care and tax reform seem to continuously elude President DJ Trump, he did pull off a win with his travel ban. Citizens of 6 Muslim-majority countries, who have no current relations in the US, will not be allowed to travel to the USA for the time being.

The stock markets seem to be holding up just fine with the three major US indices trading at near record highs. The Asian session went off without a hitch. European markets are just opening now but not looking so hot.

The CAC and the DAX are down about 0.5% out of the gate.

1.8 Million Ounces

Another rather large order was placed on gold yesterday. According to reports, 1.8 million ounces were traded in under a minute. This is more than the total volumes on the night of the Brexit referendum or the night of Trump’s election.

Many analysts are calling this a fat-finger mistake and saying that some young trader must have accidentally pressed the wrong button. I don’t buy that for a single minute.

To me, this seems far more likely to be a case of market manipulation. We had something very similar on June 8th, that was also thought to be a mistake. I mean, come on, what are the odds of two major mistakes of this proportion with this amount of money involved in a single month???

On the chart, this recent drop brought the price almost exactly low enough to touch the bottom line of the upward channel that we’ve been tracking.

$24 Billion

The so called bloodbath in the cryptomarkets has claimed many victims already. The total retracement from the peak has seen a total loss of value of $24 Billion wiped off the total valuation of the crypto industry.

We’re seeing a bit of a bounce back today with Asian buyers stepping in lightly.

The good news is that we have some sort of semblance of support from the bitcoin and ethereum charts.

The bad news is that if either of these lines is broken it could lead to more panic and mayhem.

That said when trading cryptos we need to keep in mind the time frame of the trade. If you’re a short term trader, go with the flow, there’s plenty of momentum in this market for quick trading. If you’re a long term investor, don’t be concerned with the short term movements.

Either way, always diversify yourself!!

Let’s have an awesome day ahead.

This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. 

Past performance is not an indication of future results. All trading carries risk. Only risk capital you’re prepared to lose.

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.



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2 Comments

2 Comments

  1. embersburnbrightly

    June 27, 2017 at 2:12 pm

    Indeed, there appears to be entirely too many “fat fingers” all of a sudden, in various markets; too many “flash crashes” that don’t seem to bring the credible serious investigations they deserve.

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Analysis

Cryptocurrency Analysis: Ripple Continues Rampage as Litecoin and Ethereum Enter Correction

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Ripple remained in the center of attention in the segment after breaking out to a new all-time high yesterday, and the coin almost doubled in value, climbing above the $0.80 level. The currency concluded a 6-month long consolidation pattern with the move after being the only major on a long-term buy signal in our trend model.

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XRP gave a short-term sell signal today, while turning neutral regarding the long-term setup. Investors now shouldn’t add to their positions, although further gains are still possible, and reducing holdings somewhat is a good idea here. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

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While Bitcoin stagnated, and Bitcoin Cash jumped, Ethereum, Litecoin, Dash, and IOTA has been drifting slightly lower, although the recent gains are still mostly intact, and the basic setup in the segment is unchanged.

Litecoin fell below the $300 level after yesterday’s consolidation, and the coin faced strong selling pressure in the latter half of the session. The currency remains extremely stretched regarding the long-term momentum indicators, and although the short-term uptrend is still intact, a deeper correction is likely in the coming weeks, with key support levels found at $125 and $100, and weaker levels at $260 and $170.

LTC/USD, 4-Hour Chart Analysis

(more…)

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Altcoins

Trade Recommendation: XMR/BTC Pair Throwback

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The XMR/BTC market (Monero) has been in downtrend on the hourly chart after posting a high of 0.0225 on December 6 and failing to hold critical support at 0.02. It went to as low as 0.0145 on December 8 before respecting RSI at 32 where it established support. The market used the new support level to rally and generate one higher low after the other. It recently attempted to reclaim support at 0.02 but was repelled by bears. Currently, the market is trading around 0.019 levels where it appears to have created another higher low.

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Technical analysis shows a large reversal pattern in the hourly chart that can take the XMR/BTC pair to 0.025. Even though the market failed to breach resistance at 0.02, investors should not see it as a failed breakout. What we’re seeing is a throwback which is a temporary retreat in price. Throwbacks are common in breakout plays and are often seen as a bullish signal. The next time the market attempts to breach 0.02 resistance, it has a much better chance of breaking it with conviction.

The strategy is to buy breakout at 0.02 with immediate stop at 0.0189.

Hourly XMR/BTC Chart on Poloniex

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As of this writing, XMR/BTC is trading at 0.018714 on Poloniex.

Summary of Strategy

Buy: breakout at 0.02

Target: 0.025

Stop: move below 0.0189 after buying breakout at 0.02.

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.



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Altcoins

Trade Recommendation: FCT/BTC Bullish Reversal

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The market reach its all-time high back in June this year when FTC/BTC (Factom) reached 0.01463162. Unfortunately, the pair wasn’t able to sustain its momentum. It created a lower high several days later at 0.01066744 which signalled investors to take profits or cut their losses. As a result, the market tumbled and lost 93.17% in value from its all-time high. Such a tremendous loss would have created an atmosphere of despair in the market. Usually, that’s when the savviest traders come in.

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Technical analysis reveals that the worst is behind the pair. FCT/BTC touched support at 0.001 on the daily chart twice and respected it on both occasions. This is a good indication that the market has found a reliable support level. In addition, hourly chart shows that a large reversal pattern is underway. The pair may have retreated when it nearly touched 0.002, but it generated a new higher low in the process at 0.00156566. The throwback is a bullish signal that enables the pair to gather momentum to break resistance at 0.002.

The strategy is buy on breakout at 0.002. Breach that level and the market reclaims 0.003. Sell that level because it is a strong resistance.

Hourly FCT/BTC Chart on Poloniex

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As of this writing, FCT/BTC is trading at 0.001738 on Poloniex.

Summary of Strategy

Buy: breakout at 0.002

Target: 0.003

Stop: move below 0.0018 after buying breakout at 0.002.  

 

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.



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