Apart from a brief but steep dip in BTC the most valuable coin continued to rise, getting close to the $4900 mark, only a few percent of its all-time highs and the $5000 level. With news about a crackdown on Bitcoin-related activities coming out from Russia earlier on, the segment experienced a short selling panic. The coin is still the leader regarding relative strength, as the Segwit-rally continued to restructure the market towards BTC. With no major technical resistance left until $5000, we expect at least a test of that zone during the current leg higher. Support levels are now found at $4650, $4400, and near $4150.
BTC/USD, 4-Hour Chart Analysis
Altcoins got under severe pressure yesterday, but that eased considerably today, and the most important coins rebounded strongly off their lows, with the exception of Ripple that has been outperforming the market recently. XRP is in a short-term correction after its surge, while Ethereum has been one of the strongest altcoins during today’s recovery. The previously leading Dash, Monero, and Litecoin are still slightly lagging the broader market, with Ethereum Classic being the weakest major. Let’s see how the short-term charts look after two busy days this week.
ETH/USD, 4-Hour Chart Analysis
Ethereum held up above the $285 support once again and it si showing considerable relative strength today, climbing back above the $300 level. As the coin is looking bullish long-term as well, we still expect a rally above the $330 resistance soon, and a possible test of the $380 level as well, with further support found at $250.
LTC/USD, 4-Hour Chart Analysis
Litecoin recovered well after yesterday’s sell-off and it remains one the least volatile coins despite being relatively weak since the China-crash. The $51 and $56 levels are likely to remain in focus as range trading is still dominant, but the long-term picture is bullish and a rally towards the $64 resistance will likely be the next major move in the coming weeks.
DASH/USD, 4-Hour Chart Analysis
Dash is trading below the key $300 level as the grinding correction continues in the coin. While the long-term picture is encouraging, we still expect sideways trading to continue, similarly to LTC before a significant move higher. That said, a major dip is unlikely in the currency. Primary support below $300 is at $265, while resistance is ahead at $330 and $360.
XRP/USD, 4-Hour Chart Analysis
XRP is trading in a volatile short-term correction after its recent surge, and the $0.26 level is in focus now following a brief dip below $0.24 yesterday. The coin is still slightly overbought, and although we expect the rally to continue, with a test of the $0.30 zone, the current correction could last few more days. Support levels are now found at $0.22, $0.20, and $0.18, with resistance ahead at $0.26 and $0.30.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic remained relatively weak after breaking below the short-term rising trendline, as it continues to trade below the $12 level and the crucial resistance zone around $13.50. Short-term traders should still wait for a move above the primary resistance zone, with support still found near $11 and $9 and further resistance ahead at $16 and $18.
XMR/USD, 4-Hour Chart Analysis
Monero’s market remained very calm even during yesterday’s brief altcoin panic, as the dominant low-volatility correction pattern is still intact. The coin still looks encouraging concerning the long-term picture, with the key $80 level still holding up. Further support is found at $68, while resistance is ahead at $100, $125, and near the all-time high above the $150 level.
NEO/USDT, 4-Hour Chart Analysis
NEO is still highly volatile as active trading continues in the coin, as it has been the case ever since the Chinese ICO-ban panic. The currency is back near the $30 level after yesterday’s plunge, and we still expect another test of the $40 level after the end of the current volatile consolidation. The long-term picture is bullish, with strong support at $25, and resistance ahead at $34 and $40.
IOTA/USD, 4-Hour Chart Analysis
IOTA is trading right at the $48 support level after yesterday’s spike lower, and we still expect the key $0.45-$0.48 support zone to hold up in the coming period. The next leg higher should carry the coin back to the $0.64 resistance, with another weaker level at $0.56, and a long-term target of $0.75.
Featured image from Shutterstock
Technical Analysis: Bitcoin Grinds Higher as Records Tumble in Altcoins
The historical surge in the segment, which is the second such move this year, continued today, with another round of break-outs in some of the major altcoins and tepid gains for BTC investors. Ethereum, Ripple, Dash, and first and foremost Litecoin was leading the charge, with the recent star LTC topping $300, just after a day of hitting the $200 mark.
Litecoin defied all odds after reaching extremely overbought readings, and the coin rode the speculative wave, turning exponential, not unlike IOTA and Bitcoin previously. With the coin being stretched in an unprecedented way on all time-frames, investors could even consider selling their core positions at the current levels, as a deep correction is almost granted in the coming period. The first meaningful support level is found at $125, and a re-test of the $100 level is probable during the next major correction.
LTC/USD, 4-Hour Chart Analysis
Ripple finally ended a long period of relative weakness today, and the only major on a long-term by signal jumped over primary resistance at $0.26 and crossed the $0.30-$0.32 too in the euphoric sentiment. As the coin is not long-term overbought following the 6-month long consolidation, the buy signal in XRP remains intact, with the only major resistance level being found at the all-time high near $0.425.
XRPUSDT/USD, 4-Hour Chart Analysis
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.
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