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Technical Analysis: Bitcoin Locked in Tight Range as Altcoins Drift Lower

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The short-term picture in the cryptocurrency segment remains dominantly bearish, with still no majors being on a buy signal according to our trend model. Volatility declined substantially in recent days, and that could still be a sign of an ongoing bottoming process, but a healthy rally would need clear leadership with meaningful bullish momentum, and none of those is present currently as most of last week’s leaders pulled back.

BTC/USD, 4-Hour Chart Analysis

That said, Bitcoin is outperforming altcoins, holding up above a key support zone near $7650, while trading in a narrow range with low volume and volatility. The coin is still on a neutral short-term signal, and before a rally above primary resistance near $8400, traders shouldn’t open new positions, while the long-term setup is still favorable. The coin is facing further resistance between $9000 and $9200, while support is found below $7650 near $7000 and $6750.

ETH/USD, 4-Hour Chart Analysis

Ethereum is still in a clear short-term downtrend, trading right at the recent 4-month low, near the $450 price level. While investors could still add to their holdings, given the oversold long-term picture, traders should stay out of the market, for now.  The second largest coin is facing strong resistance at $500, $575, $625, $640, and between $740 and $780, with primary support found at $400.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin has been under pressure in recent days, losing its short-term relative strength, but still trading well above the February lows. The coin is right at the lower boundary of the declining trend channel, with strong support just below at $125. With the long-term picture still being bullish, investors could still add to their holdings, but the currency is on a short-term sell signal.  Resistance is ahead at $140, $150 and in the key $170-$180 while further support is at $100.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is under strong selling pressure despite the weekend strength, and the coin is now trading slightly below the $360 support as well, although the decline is lacking momentum, and last week’s lows are well below the current price level. The currency is on a short-term sell signal, and a recovery above the next resistance level at $375 would be needed at least for an upgrade, with support found near $315 and $300.

Ripple

XRP/USDT, 4-Hour Chart Analysis

Ripple continues to trade in a strong downtrend, although the $0.58 level, which is marking the February low, is holding for now. The coin is still on a short-term sell signal, and a drop below last week’s low near $0.54 would warn of a test of the prior all-time high at $0.42. The coin faces strong resistance at $0.68, $0.85, and $1, with a short-term level found at $0.73.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic is hovering around the $16 level, still above both last week’s low and the February minimum. That said, the coin is clearly in a short-term downtrend and on a sell signal for traders, however investors could still accumulate the coin here, as ETC is oversold from a long-term perspective. Support levels are found at $14.50 and $13.50 while further resistance is near $18, $20, and $23.

Monero

XMR/USDT, 4-Hour Chart Analysis

Monero is the closest to a short-term buy signal among the majors, as it recovered up to the primary resistance at $200 today, but for now, the key level held back the coin. As we expect the currency to retain its recent leadership, investors could still add to their holdings, but only aggressive traders should open new positions here.  Strong resistance levels ahead, near $240 and $280, while key support is found at $175 and $150.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO settled down near $0.57 after plunging below the $64 level, as the coin lost its relative strength after a very brief period. The currency is slightly above last week’s low, but, together with its closest peer Ethereum, it remains among the weakest coins from a short-term perspective, while long-term investors could add to their holdings. Strong support is at $50, while further resistance is ahead at $80, $100, and between $120 and $130.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA failed to build on its leadership during last week’s rally and it’s still trading near the $1.20 support level, below the broad declining trendline that is currently found near $1.35. The coin is neutral short-term, while long-term investors could still accumulate IOTA here. Resistance above that is at $1.5 and $1.9, while support is found at $1.1 and $1.

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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4.6 stars on average, based on 278 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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Altcoins

Treading the Floods: Cryptocurrency Prices Stable Following Bithumb Attack 

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Cryptocurrencies emerged unscathed Wednesday following yet another security breach of a South Korean exchange, as the market continued to favor a corrective rally for bitcoin and the major altcoins.

Crypto Prices Hold Steady

Bitcoin fell by as much as $200 Wednesday on news of a cyber attack targeting South Korea’s Bithumb exchange. However, the coin quickly recovered and now sits just shy of $6,800, according to data provider CoinMarketCap. Prices peaked at $6,821.56 at 12:34 UTC.

Compared with 24 hours ago, bitcoin’s per-coin value was virtually unchanged.

The ten biggest altcoins by market cap exhibited the same pattern, with prices treading water compared with Tuesday afternoon. The total cryptocurrency market was valued above $290 billion, up from an earlier low of around $282 billion.

Bitcoin and the major altcoins have more or less retained their bullish bias, which suggests that a continuation of the upward trend is likely. Since bottoming last week, coins have rebounded $26 billion.

Bithumb Attack: What We Know

Hackers made off with roughly $31 million in stolen cryptocurrency on Wednesday as Bithumb suffered its third cyber breach in 12 months. The attackers reportedly targeted users’ holdings of XRP, the third-largest cryptocurrency by market cap, by running a series of unauthorized access attempts.

Bithumb was unable to prevent the attack despite spending upwards of 10 billion won ($9 million) on security enhancements. This includes complying with new guidelines for financial institutions requiring 5% of company staff be made up of IT specialists. Bithumb has reportedly exceeded that quota by a wide margin.

The Seoul-based exchange confirmed that it had migrated outstanding crypto balances to cold storage and said it will fully refund affected users. Transactions on the exchange remain suspended for now.

Although news of the attack hit the airwaves on Wednesday, some analysts believe the theft occurred several days earlier as part of Bithumb’s data upgrade. However, the exact cause of the breach remains unclear.

Goldman Sachs Weighs Crypto Trading as an Option

U.S. multinational investment bank Goldman Sachs is considering taking a bigger dive into cryptocurrency by launching a full-scale trading operation, according to COO David Solomon.

“We are clearing some futures around bitcoin, talking about doing some other activities there, but it’s going very cautiously,” Solomon said during an interview in China, as reported by CCN. “We’re listening to our clients and trying to help our clients as they’re exploring those things too.”

Currently, the Wall Street investment giant is clearing bitcoin futures contracts. It has also announced plans to introduce a new bitcoin trading operation, which includes using its own money to trade with clients in a variety of contracts linked to bitcoin.

Institutional traders are awaiting the arrival of custodial services dedicated to cryptocurrency before taking the full plunge into digital assets. To that effect, the San Francisco-based  Coinbase exchange is leading the charge by announcing a new line of crypto custodial services to unlock up to $10 billion in institutional capital.

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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4.6 stars on average, based on 461 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: Bitcoin Stalls at $6750 as Rally Attempts Fade

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The top coins are trading slightly lower today in early trading, as the rally of the last two days ran into strong resistance. The majors are all holding up above last week’s lows but the short-term downtrend that could have significant long-term implications is clearly intact. The overnight dip was partly fueled by news on yet another possible exchange hack, this time Bithumb, but the losses are limited so far.

Correlations are still elevated between the majors even as relatively narrow trading ranges dominate the market. Trading activity remains low, as the segment continues to consolidate last week’s wild swings, and summer trading conditions are also starting to set in. The total value of the market is hovering around $280 billion, as the rebound failed to hold the capitalization above the $300 billion mark.

BTC/USD, 4-Hour Chart Analysis

Bitcoin failed to regain the $6750 resistance despite several rally attempts, as it continues to trade dangerously close to last week’s lows and the crucial long-term resistance between $5850 and $6000.  The short-term trading range around the $6350 level is intact, and the coin remains on a sell signal on the 4-hour time-frame. Further resistance is ahead near $7000 and $7350, while primary support is currently found at $6500.

Ethereum Still Strong but Short-Term Picture Shaky for Altcoins

ETH/USD, 4-Hour Chart Analysis

While the long-term outperformance of Ethereum is still impressive, the other previously leading coins are not ahead of the broader market, and without a clear leadership, a sustained rally is not realistic. The current setup favors at least a re-test of the lows, and possibly another leg higher with regards to the majority of the top altcoins.

Ethereum is trading above the $500 level despite the early selloff today, and the coin is just below the declining trendline, although with several strong resistance levels above the current price, the coin will likely follow the broader market lower in the coming days. Primary resistance is still ahead between $555 and $575, while further support below $500 is found at $450, $400, and $380.

XRP/USDT, 4-Hour Chart Analysis

Ripple remains below the $0.54 level, EOS is just above the $10 support, and the most bullish Binance Coin is also drifting lower today, with IOTA’s short-term relative weakness being apparent. Among the long-term laggards, Litecoin, Dash, and Monero are all under pressure, and should they breach last week’s lows, selling could intensify again.

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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4.6 stars on average, based on 278 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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Analysis

Technical Update: Gold Continues Sliding, Falls Below Key Support

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On May 17, we discussed gold breaking below the lower boundary of its 4-month, 70-dollar trading range (trading range – $1,300 to $1,370 in Figure 1 and horizontal trendlines in Figure 2 – GLD shown).

Figure 1. Gold Daily Chart

Technical Developments

  • After the initial break below the horizontal trading range, gold found support at the trendline connecting the December 2016 & December 2017 lows (support – green trendline; retest – last green arrow).
  • Over the next couple of weeks, the commodity staged several attempts to move back within the horizontal range however it halted at two major resistances:
    1. Its 200 SMA (white line in Figure 2 and blue line in Figure 1).
    2. The support-turned-resistance horizontal trendlines (lower bright blue and purple trendlines in Figure 2).
  • On Friday (June 15), gold moved below the trendline that had served as support in May and June (green trendline).
  • This week, the commodity has continued to slide, so far, giving no indications that it will quickly recover and move above its broken support.

Figure 2. GLD Daily Chart

Implications

  • Gold’s sharp decline on June 15 confirmed the importance of the green trendline. The break below it is deemed significant, at least in the short-term.
  • Given the break below the 1.5-year support (green trendline) and the lack of major support levels in the $1,240 – $1,280 range, the target obtained from the trading range breakdown is likely to be met (target – $1,230 obtained by projecting the $70-dollar height of the pattern from the point of the breakdown).

Outlook

  • Short-term bearish as long as the commodity remains below the lower of the green trendline and its 200 SMA (currently at $1,308).
  • Neutral with a bullish bias if gold quickly moved back above the green trendline and subsequently above its 200 SMA.
  • Short- and long-term bullish above $1,380, as a break above 2016’s high will activate the previously discussed longer-term upward targets.

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 14 rated postsPublished author of technical research. In his work on price “gaps”, published in the 2018 International Federation of Technical Analysts’ Annual Journal, he developed a new technical tool for analyzing and trading the “gap” phenomenon – the “K-Divergence” (http://ifta.org/public/files/journal/d_ifta_journal_18). Besides obtaining a Master in Financial Technical Analysis, he has completed a BBA and an MBA from the Schulich School of Business in Toronto and has completed all exams for the CFA, CMT and CFTe designations. Currently, providing research to investment management and financial advisory firms. http://www.linkedin.com/in/konstantindimov




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