Connect with us

Analysis

Technical Analysis: Bitcoin Price Nears $3500 as Sell-Off Continues

Published

on

The prices of the main cryptocurrencies fell in a choppy and correlated fashion overnight, and all of the major coins are significantly lower, trading near or under the post-crash lows. Bitcoin got close to the crucial $3500 level while Ethereum fell almost to $250 in early trading. BTC lost some of its relative strength amid the China mining ban rumors recently, but the coin remains well above the crash lows and although further correction is likely, we don’t expect durable new lows below $3000 during this cycle. A strong support zone is found near $3150, while resistance is now ahead at $3800.

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

BTC/USD, 4-Hour Chart Analysis

Dash is still in the best technical position among the majors, although it declined from yesterday’s highs amid the broad sell-off. Litecoin is one of the weakest currencies, and Monero is also well below the weekend lows, getting closer to the crash levels of Friday. While the correction will likely last through the weekend, most of the largest coins should hold above their lows as the long-term picture is reaching oversold territory. We expect volatile trading in the coming days, and the short-term charts remain crucial for traders. Let’s see the details.

// -- 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 -- //

Ethereum

ETH/USD, 4-Hour Chart Analysis

ETH held up above the $250 level during the overnight decline, and it showed relative strength today compared to BTC, as it didn’t hit a new low in early trading. The coin is also above the weekend lows, and although we still expect a dip below $250 before the end of the correction, the strength should be encouraging for bulls, and a durable new low in the currency is not likely. Below $250, more support is found at $235, while primary resistance is at $285.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin dipped below $51 and the weekend lows during the current leg lower in the correction and it’s now headed towards the $44 support level, with the declining short-term trend clearly being dominant. We still don’t expect a new low below the crash levels at $35, and the coin should hold above the long-term base formation below $38. Above $51 strong resistance levels are at $56 and $64.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is still trading above the declining short-term trend despite the bearish pressures in the segment, and the coin is now far off from yesterday’s rally highs near $360. The all-time high just above $400 is also in sight, but a dip towards $300 is still likely before a sustained move higher, as the rest of the majors are still clearly in correction mode. That said, long-term investors should be buying the short-term dips, with further support found near $265.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP also spiked below the weekend lows amid the decline, but the coin remains among the least volatile majors, still trading well above the long-term base formation near $0.15. The currency is below the declining trendline and the resistance zone near $0.18, and the long-term technical setup is unchanged. Support is found at $0.16 and $0.14 while resistance is still ahead around the $0.195 and $0.22 levels.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic continued to show weakness, trading very close to the crash lows today, and remaining inside the steep short-term downtrend. The coin faces strong overhead resistance up until $13.50 with support found near $9. Traders should still stay away from new positions, as long as the declining trend is intact.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero is still relatively weak, dipping below the weekend lows, likely headed towards the $80 support level. The currency is still well above the prior all-time high, and the long-term picture remains encouraging. That said, traders should wait until a new short-term uptrend is established before entering new positions.  Further support is found below $80 near $68, while primary resistance is now at $100.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO remains inside the declining trend, trading just above the $16.50 support level after the overnight decline. The coin is once again among the relatively weak currencies after a brief period of strength, and short-term traders are still advised to wait with opening new positions, although the current levels remain attractive from a long-term perspective. Strong support is still at $16.50 and $13 with key resistance at $22, $25, and $30.

IOTA

IOTA/USD, 4-Hour Chart Analysis

The $0.45-$0.48 support zone still holds up in IOTA despite the current leg lower, and the coin is among the relatively stronger majors regarding the short-term picture. As we expect the broad correction to continue, a dip below primary support is possible, but long-term investors should be buying the short-term dips after the lengthy decline. Resistance is ahead at $0.65 and $0.75 while further support is found near $0.35.

Featured image from 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.



Feedback or Requests?

Analysis

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

Published

on

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.

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

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

// -- 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 -- //

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…)

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.



Feedback or Requests?

Continue Reading

Analysis

Daily Analysis: Dollar Falls, Gold Jumps after Yellen’s Final Move

Published

on

Wednesday Market Recap

Asset Current Value Daily Change
S&P 500 2668 -0.02%
DAX 13125 -0.45%
WTI Crude Oil 56.65 -0.68%
GOLD 1258.00 1.35%
Bitcoin 16,100 -6.32%
EUR/USD 1.1842 0.73%

The Federal Reserve hiked interest rates as expected today, and although the central bank’s monetary statement was slightly more hawkish than expected, the market’s reaction didn’t reflect the much-anticipated move. The worse than expected Core CPI reading that underlined the low-inflation narrative weighed on the recently strong Greenback, while stocks were unchanged after decision and bonds gained ground as yields retreated.

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

EUR/USD, 4-Hour Chart Analysis

The major indices are hovering near their all-time highs with the DOW leading the way higher, hitting a new record for the second day in a row. While volatility Is expected to remain low as we approach the end of the year, market internals and valuation levels are still concerning from a long-term perspective, and stocks outside the US are also negatively diverging. The action in crude oil could be slightly more interesting as the commodity is starting to act in a slightly bearish manner after a grinding multi-month rally.

// -- 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 -- //

WTI Crude Oil, 4-Hour Chart Analysis

The Brexit process is still in the center of attention in Europe, although volatility took a nosedive on the old continent as well, and it’s unlikely that the Christmas period will be much different, given the predictable drop in volumes and trading activity. The date of the next election in the financially and politically troubled Italy has been set to March 4th next year, and the early date caused some turmoil in the countries assets, which dragged the Euro Stoxx 50 lower today, together with the DAX and the other major indices.

Cryptocurrencies

As the total market cap of the crypto-market crossed the incredible $500 billion mark, Ripple, NEO, and Ethereum made headlines with lofty gains in the face of the severely overbought readings elsewhere in the segment. While XRP and NEO are still not overbought from an investment perspective, Ethereum reached our final target for its break-out and triggered a long-term sell signal.

ETH/USD, 4-Hour Chart Analysis

The previously surging IOTA continued its correction, Litecoin consolidated in a relatively narrow range, while Dash, ETC, and Monero scored marginal new highs before turning lower together with BTC. The most valuable coin that has lost some of its momentum “mojo” in recent days fell back below last week’s highs, and that could mark a failed break-out and a start of the deeper correction that seems more and more likely.

BTC/USD, 4-Hour Chart Analysis

Key Economic Releases on Wednesday

Time, CET Country Release Actual Expected Previous
11:30 UK Average Earnings 2.5% 2.5% 2.3%
11:30 UK Claimant Count Change 5,900 3,300 6,500
11:30 UK Unemployment Rate 4.3% 4.2% 4.35
15:30 US Core CPI 0.1% 0.2% 0.2%
15:30 US Crude Oil Inventories -5.1 mill -3.6 mill -5.6 mill
21:00 US Fed Rate Decision 1.5% 1.5% 1.25%
21:00 US FOMC Statement

Featured image from 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.



Feedback or Requests?

Continue Reading

Analysis

Technical Analysis: Volatility on the Rise Again, as Ripple and Ethereum Hit Targets

Published

on

Ripple has been the star of today’s session in the cryptocurrency segment, as the only major coin on a long-term buy signal in our trend model continued yesterday’s break-out, and surged to a new all-time high. The currency cleared the $0.425 level that marked the top in May, and after the more than 6-month long consolidation phase, it promptly neared the $0.50 level.

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

While the short-term momentum indicators are now stretched, the coin is still in an encouraging long-term setup, although the best period to buy already passed. The coin could be dragged lower in the case of the expected broad correction in the segment, but we expect XRP to outperform in the coming period, with support levels found at the prior high and below that in the range between $0.30-$0.32.

XRP/USDT, 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 -- //

Ethereum has been the other top coin on the rise, as the second largest digital currency surged past the final range projection target of the break-out two weeks ago at $685 in the aftermath of the launch of the BTC futures on Monday. The ETH token is now also on a sell signal on all time-frames, and we advise investors and investors to wait for the next major correction to establish new positions. Support levels are now found at $575, $500, $480, and $400.

ETH/USD, 4-Hour Chart Analysis

(more…)

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.



Feedback or Requests?

Continue Reading

Trending