Following yesterday’s brief but deep correction, the major cryptocurrencies seem to be back on the bullish track, as Bitcoin is leading the segment yet again. With the most valuable coin’s dominant currently near 56%, trading in BTC dwarfs the other crypto markets. That said, most of the majors recovered well after yesterday’s rout, while Bitcoin itself reached as high as $5730 today in early trading, only a few percents off its all-time high.
The short-term setup is encouraging for bulls, as the coin cleared the overbought short-term momentum readings while remaining inside the rising trend. A rally towards the long-term target at $6000 is still likely, despite the stretched long-term picture. Support levels are found near $5400, around the $5000 level and at $4650.
BTC/USD, 4-Hour Chart Analysis
Ripple settled down somewhat in early trading but it turned volatile again later on, and the coin is still underperforming the broader market, while Ethereum bounced back well above the $300 level, remaining well below its recent highs. The rest of the market is modestly higher today, although NEO and IOTA are slightly lower still showing a negative correlation with the other majors. Let’s see the short-term charts after the short volatile period.
ETH/USD, 4-Hour Chart Analysis
Ethereum dipped below the $300 level amid the broad move lower and it got close to the key $285 support yet again before the bounce. The coin is now getting short-term oversold, with the long-term uptrend being in no danger. The long-term MACD is still neutral, and a rally towards $380 is likely in the coming weeks, with primary resistance ahead at $330.
LTC/USD, Daily Chart Analysis
Litecoin is back in neutral territory regarding short-term momentum after the correction and the correction looks set for a re-test of the $64 level and a likely break-out to new rally highs in the coming days. The long-term setup is still positive, and we expect the coin to resume its long-term uptrend. Support is still found near the $56 level, around $51, and below the at $44.
DASH/USD, 4-Hour Chart Analysis
Dash continues to be one of the least volatile majors as it trades firmly inside the long-term consolidation pattern, hovering around the $300 price level. With the strong long-term uptrend still being intact, we expect the coin to break-out from the formation in the coming weeks, but until a bullish confirmation, short-term traders should still wait with opening new positions. Resistance levels are ahead near $330 and $360 with the all-time high just above $400 and strong support at $265.
XRP/USD, 4-Hour Chart Analysis
XRP is still one of the most active majors after finding support near the $0.20 level, following the freefall that started off the $0.30 resistance. The short-term MACD is signaling a recovery for the coin, but it needs to rally above the key zone around $0.225 level to return to a bullish short-term signal. The long-term picture is still clearly positive, but strong resistance is still ahead near $0.24, and $0.26, and especially between $0.30 and $0.32.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic holding up above the $11 support level, but it’s still the weakest major, and it fails to show the relative strength that a short-term buy signal would require. For long-term investors, the current levels are still attractive, but the coin still faces resistance at $12.50, with further supply around the $13.50 level, and support at $9.
XMR/USD, 4-Hour Chart Analysis
Monero is trading in a range between the $100 and $83 levels, even after exiting the lengthy declining correction pattern last week. While the coin remains bullish on both time-frames, more sideways price action is possible before a durable move higher. The long-term MACD is neutral, and the currency is confidently above the previous long-term top, pointing to strong underlying strength. Support is still found near the $80 level and around $68, while further resistance is ahead at $125.
NEO/USDT, 4-Hour Chart Analysis
NEO is drifting lower after yesterday’s surge above the key $30 level, still trading inside the broad range that developed after the post-crash recovery. The long-term picture is encouraging, but more time might be needed before the next test of the $40 level, with strong support below the current price at $27 and $25.
IOTA/USD, 4-Hour Chart Analysis
IOTA is still stuck below the $0.45 level, as the short-term selling pressure remains dominant, and before a durable recovery above $0.48, short-term traders are still advised to wait with opening new positions, although investors could add to their positions here. Long-term support is found at $0.35, while resistance is ahead at $0.56 and $0.64.
Featured image from Shutterstock
Technical Analysis: Litecoin Continues Surge as Bitcoin Tests Highs
With the crypto world being focused on the historical futures launch, the major coins all enjoyed buying following a hectic weekend, and a volatile week as a whole. BTC itself got another boost from the widespread publicity and the volatile correction of the recent days ended, with the most valuable coin bouncing back towards its all-time high.
While the long-term picture remains severely overbought, the short-term picture is not stretched and further gains are possible even amid the elevated correction risk. That said, investors should wait for a more favorable entry point to ad dot their holdings, while traders should control position sizes in the light of the long-term setup. Major support levels are now near $13,000, $11,300, and $10,000, with stronger levels still at $8200 and $7700.
BTC/USD, 4-Hour Chart Analysis
The major altcoins are all up today, but only Monero and Litecoin are still within short-term uptrends, and the segment as a whole is still dangerously overextended, and a deeper correction is very likely in the coming weeks. LTC continued its recent break-out, getting close to the $200 level, and joining the extremely overbought group regarding the long-term momentum, and triggering a long-term sell signal in our trend model. Key support levels are found $100 at $75 and $64, with a weaker primary level at $125.
LTC/USD, 4-Hour Chart Analysis
Long-Term Analysis of the Silver Market
The silver market has once again caught investors’ interest as the price is nearing areas not seen since late 2008.
2017 started at a low point for silver, and it seems it will end the year that way as well, meaning investors who bought at the beginning of the year haven’t suffered nor gained much.
This doesn’t mean, however, that the price hasn’t moved during the year. After the low start of the year, silver quickly tacked on about 18% to a top of $17.50 per ounce.
In terms of fundamentals in the silver market, things look a bit complicated for 2018. There are multiple forces pulling in different directions for the price of silver going forward:
- A sharp stock market correction can be expected to occur some time in 2018. Most likely, this will happen sooner rather than later. Stock market crashes always trigger a flight to safety, meaning gold, silver, and quite possibly bitcoin, can benefit.
- We are seeing signs that inflation may be starting to rise again, although this is not confirmed yet. Rising inflation is always good for precious metals.
- If the US federal budget deficit widens as a result of the new tax reform, the US dollar may suffer as a consequence. Goldman Sachs put out a note to investors in November 2017 saying that the US debt is “on track” to reach an “unsustainable” level in coming years. Fed Chair Janet Yellen has also said about the US debt that it is “the type of thing that should keep people awake at night.” Rising debt levels creates uncertainty about the economy, which is generally good for gold and silver.
- Central banks around the world seem committed to raise interest rates in 2018. Rising interest rates are bad for precious metals because it would make it more attractive to put money in the bank.
- The cryptocurrency bull market is on track to continue, diverting attention and capital away from precious metals as a traditional store of value. However, this one is uncertain, as it may also be considered a positive in the way that the rise of cryptocurrencies brings the inflationary and unsustainable nature of fiat currencies into focus.
- The US dollar may have hit a bottom in 2017 and trade higher compared to other major fiat currencies going into 2018. A stronger dollar is always bad for precious metals, which are priced in dollars.
When looking at the chart, we can see that silver is back down to were it started the year, which coincides with a major support area where it has turned several times in the past few years.
From a technical perspective, silver has been trading in a triangle pattern on the longer-term weekly chart, with the price now trading very near the lower end of the triangle, adding confluence to our bias that silver will trade up from here.
Silver failed to live up to our prediction from early 2017, and is now even trading well below the level from that time.
A low price by any measure combined with two major technical support levels adds confidence to our trade and makes silver a low risk and potentially high reward trade for 2018.
Depending on your own strategy and investment style, you may want to wait for the price to break out from the current triangle pattern it has been trading in for the past year and a half. You would then give up some of the potential return for an even safer trade. After that, major resistance is found around $17.50 and $18, with lots of upside potential if we can finally break through those levels.
Featured image from Pixabay.
Long-Term Cryptocurrency Analysis: Look Out Below?
After last week’s observation that a major top is in or near in the segment, the Bitcoin surge continued for almost a week, with Thursday’s wild session taking the coin as high as $19,000 (the article uses Bitstamp prices) on some exchanges. While the currency already pulled back by more than 20% the long-term picture is still extremely overbought and a much deeper correction is likely in the coming weeks.
BTC spiked below $13,000 today, violating the primary weak support at $13,300, with further levels now at $11,300, $10,000 and $9000, but stronger support only found at $8200 and $7700. Next week’s futures launch could cause another jump in trading activity, and volatility is expected to remain very high amid the likely correction.
BTC/USD, Daily Chart Analysis
While not all altcoins participated in the, supposedly, last part of the rally, IOTA, Monero, and towards the end of the week Litecoin, also stretched above all conventional targets with IOTA also turning exponential after a deal with Microsoft. The coin exploded by more than 350% before entering an initial sharp correction, breaking the steepest short-term uptrend. Strong support is only found at $3 and $1.5, but potential Fibonacci support is at $2.35.
IOT/USD, Daily Chart Analysis
Let’s see how the long-term charts of the other altcoins look after the crazy week.
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