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Technical Analysis: IOTA Goes Berserk as Bitcoin Defies Gravity Again

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The late-stage rally in the segment continued, as buying is concentrated in fewer and fewer names, with the rest of the majors experiencing capital outflows, as they are already entering a correction. The most valuable coins extended its historic rally above the $13,000, after moving out of the usually bearish rising wedge pattern.

BTC surpassed all our expectations for the current leg higher, as the financial mainstream focused on the cryptocurrency, driving prices to extremely overbought levels. Despite that, we still expect a deeper correction in the coming weeks that could be devastating to the late buyers of the rally. Major support levels are found near $9000, $8200, $7700, and $7000.

BTC/USD, 4-Hour Chart Analysis

Ethereum is leading altcoins lower, with the exception of IOTA and Monero, although those two coins also turned lower in the second half of the session. The second largest coin failed to reach last week’s highs and turned lower off the primary target for the cycle yet again, as selling pressure intensified today. The coin is still above the initial break-out level at $400, but during a likely deep correction in the coming weeks, a test of the $380 and $350 supports is possible.

ETH/USD, 4-Hour Chart Analysis

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin turned lower together with the majority of the coins, but the coin is still trading in the close vicinity of the $100 level and the all-time highs. LTC is likely to follow the market in the likely deeper correction, and a re-test of the $75 ore even the $64 support is possible in the coming weeks, with the long-term picture being overbought, although the short-term uptrend is still intact.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is ahead of Litecoin in the cycle, as it already broke below the short-term uptrend, while being more than 10 percent below the all-time high of last week. The currency remains dangerously overbought from a long-term perspective, and investors should wait for more favorable conditions to add to their positions, with support levels near $600, at $500, $470, and around $410.

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple is still showing relative weakness, and the coin fell below the weak short-term uptrend today following the broader market lower. We still expect volatility to pick up again, with key support levels near the current price, just below $0.20 and at $0.18. Target levels are ahead at $0.26 and $0.30, and the long-term momentum is still neutral.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic also faced selling pressure today, as it drifted back under the $30 level, trading right at the short-term trendline currently, with the long-term setup still being severely overbought. We expect a dip below the previous all-time high at $23 during the next correction, with further strong support found at $18.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero pushed to yet another new all-time high as momentum players rushed to the market, and the coin surged as far as $300 before turning sharply lower towards the end of the session. The currency is still in a strong short-term uptrend but investors should wait for a correction before opening new positions as the long-term picture is overbought. Major support levels are now found at $200, $180, $150, and $125.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO continues to trade in a volatile range, as the brief calm period ended today, and the coin turned lower yet again, leaving the narrow range around the $40 level. The currency is likely to remain volatile as the broad correction runs its course and the re-test of the $34 level is likely with the $30 level also being in sight. The long-term setup remains encouraging and we expect a rally towards the all-time high following the correction.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA rallied off the charts as the rally entered a parabolic phase, with the coin almost reaching the $5 level, while taking over Ripple in the list of the most valuable coins. The currency is still likely to enter a sharp correction soon, but the short-term uptrend is still intact. Due to the nature of the rally only minor support levels are found at $3.50 and $2, with the first major technical level found at $1.50.

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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4.7 stars on average, based on 394 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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3 Comments

3 Comments

  1. ezra

    December 7, 2017 at 1:56 am

    Hi, id like to get into IOTA what do you think a good entry Point is? you think i should wait until it hits a correction?

  2. saxonlucius

    December 7, 2017 at 3:44 am

    You have been saying this for a week now, and you make it sound like it is imminent every time. It is very frustrating. It’s ok to say you dont know instead of creating an atmosphere of sell sell sell. You bragged about your charts getting recognition by a couple publications. Good. I think you do a great job, but I think you may want to leave personal opinion out of it, and only state the facts with statistical probabilities. Good probabilities. Turn high entropy into low entropy. This is our purpose as human beings. Your charts have been proven wrong many times. I like your work, but I wish you would stay a little more focused on the statistic and the analysis. You can imagine, people go based on what you say, so you should probably take a wider view and establish more sources. I feel like you are informed, but you can probably be much better informed. We pay for this information. Get in touch with the right people and I think this could be a multimillion dollar profiting operation. I’d be happy to help you. lol. Good job, but no one could have imagined what happened to Bitcoin the last few days. Its unprecedented and and almost unbelievable, and this is only the start. More sources, facts, less braggadocious talk, and shoot for about 90% of all the projections should be correct, even if it means 5 less articles. That would be worth it.

  3. saxonlucius

    December 7, 2017 at 3:49 am

    Oh, since we are on the topic…. does anyone know when this impending correction of $4500 (as of 8:46pm EST/ 20:46pm EST) is suppose to happen. I want to put a huge short in, already have 3 times and lost over $1000 each time. So I want to catch this ride down and bring it is baby. I cant pinpoint when this is going to happen. Maybe it wont happen at all.

    Does anyone know when the actual correction will happen, and when I should enter a large short?

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Altcoins

Cardano Price Analysis: ADA/USDT Smashes Out of Wedge, but Saved by Critical Demand Zone

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  • ADA/USDT testing a huge area of demand and a breach by the bears could be catastrophic.
  • Cardano Foundation confirm reshuffle, as Michael Parsons, the former chairman, steps down.

ADA/USDT has continued to be victim of downside pressure after its latest bull run. The price had gained a chunky 20%, between 31st October and 6th November. ADA/USDT managed to peak just above $0.08200 territory. This was the highest level seen since 15th October. Shortly after, gradual selling started to take place, to then see all the gains plus much more taken by the heavy bears.  It appears current bull runs are not sustainable, very much vulnerable to being sold- particularly as these tend to happen in an explosive manner within a short time frame.

Cardano News Flow

Cardano this week made an announcement that Michael Parsons, the former chairman, has resigned from his position at the Cardano Foundation. Prior to this rapid departure, there had been much history of community members demanding for him to be removed. The position will be filled by the Council Member Pascal Schmid, a University of St. Gallen graduate and a financial expert. Cardano’s creator, Charles Hoskinson, accused the foundation and Parsons of neglecting their duties, in addition to bringing in close friends and family into top positions within the organization.

Technical Review – ADA/USDT

ADA/USDT daily chart

ADA/USDT is running at three consecutive sessions in the red- a move which is inline with the broader market, a mass cooling across all major cryptocurrencies. The price was forced to drop a hefty 13% in the late part of the session on Wednesday. Price action was initially moving within a wedge pattern. This had been the case since the back end of September. ADA/USDT was contained within this formation.  Given the noted heavy selling pressure that was seen across the market late Wednesday, the lower trend line of the wedge was forced to give way to sellers.

Looking to the downside, ADA/USDT has been saved from further declines thanks to a critical demand zone. The area is seen tracking from $0.07000 down to $0.06000. It has proven to see strong buyers swoop in. The price last traded down here between 12-18th September. Buyers kicked in to then drive ADA/USDT to the north, seeing gains just shy of some 50%. The bulls were able to run the price up to $0.09500 into a known supply area. A peak was seen, and this rally was then gradually sold.

Should the above-mentioned demand area fail to hold and see a daily close below, it could be catastrophic. A development such as described, could leave the door wide open to a fresh wave of heavy selling.

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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4.5 stars on average, based on 50 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Analysis

Pre-Market Analysis And Chartbook: Markets Flat Ahead of Key Economic Data

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Wednesday Market Snapshot

Asset Current Value Daily Change
S&P 500 2,729 0.02%
DAX 30 11,467 -0.05%
WTI Crude Oil 56.16 1.59%
GOLD 1,202 -0.03%
Bitcoin 6,211 -0.80%
EUR/USD 1.1287 -0.01%

As traders awaited the key US economic releases of the week, the Consumer Price Index (CPI) and the Retail Sales report, financial markets were relatively quiet and flat before the Wall Street open, but things got volatile since then, despite the muted CPI reading. The progress in the Brexit negotiations and the liquidation event in crude oil were making headlines today, although the advance in the Pound stalled, as equity markets and in general risk assets are still under clear selling pressure following the turmoil in October. The second half of the week will likely see strong moves across asset classes, and given the negative technicals, odds favor a risk-off shift globally.

EUR/USD, 4-Hour Chart Analysis

The Dollar is consolidation after its move to new 16-months highs on Monday, and for now, the currency failed to confirm the break-out, at least as measured by the Dollar index. The EUR/USD is showing a slightly different picture compared to the broader measure, and the common currency is still in a steep downtrend, even as it is back near the key 1.13 level, retracing a large chunk of Monday’s move.

A durable recovery above 1.13 could signal a failed break-down and another consolidation phase in the pair, with the long-term momentum indicators still being oversold, but the broad downtrend is clearly intact, and long positions should only be considered as short-term trades.

Nasdaq 100 Futures, 4-Hour Chart Analysis

In equities, we continue to see bearish technicals from a broader perspective, and although the post-Fed selloff halted, for now, the re-test of the October lows still seems likely in the coming weeks. The Nasdaq is still relatively weak compared to the other major US benchmarks, and the tech benchmark is the closest to its lows, even after yesterday’s bounce.

The overnight session saw a slight bullish bias in stocks, with the indices holding on to above their weekly lows, but we still view the short-term rally attempts as selling opportunities given the hostile technicals across the globe.

Crude Oil in Turmoil as Copper Holds Support, For Now

WTI Crude Oil, 4-Hour Chart Analysis

The bounce that we have been expecting in crude oil didn’t materialize despite the deeply oversold momentum readings, as the dip below the $58-$60 zone triggered a liquidation event in the commodity. The worst day for oil in 3 years saw the WTI contract falling below $55 per barrel, its lowest level in a year. Today, oil is attempting a recovery, and we continue to expect a rally up to the $63-$65 zone in the coming weeks.

Copper Futures, 4-Hour Chart Analysis

Elsewhere in the commodity segment, we are seeing further signs of weakness, despite the pullback in the Dollar. Gold is having a flat quiet day, so far, hovering near the $1200 price level, while despite the renewed trade-deal optimism, copper failed to bounce higher substantially amid the slight risk-on shift. The industrial metal is trading just above its recent swing low, and a move below that would be a sign that the lengthy consolidation phase is ending and the broader downtrend is about to resume.

ChartBook

Major Stock Indices

S&P 500 Futures, 4-Hour Chart Analysis

Dow 30 Futures, 4-Hour Chart Analysis

VIX (US Volatility Index), 4-Hour Chart Analysis

DAX 30 Index CFD, 4-Hour Chart Analysis

FTSE 100 Index CFD, 4-Hour Chart Analysis

EuroStoxx50 Index CFD, 4-Hour Chart Analysis

Nikkei 225 Futures, 4-Hour Chart Analysis

Shanghai Composite Index CFD, 4-Hour Chart Analysis

EEM (Emerging Markets ETF), 4-Hour Chart Analysis

Forex

USD/JPY, 4-Hour Chart Analysis

GBP/USD, 4-Hour Chart Analysis

EUR/GBP, 4-Hour Chart Analysis

AUD/USD, 4-Hour Chart Analysis

Commodities

Gold Futures, 4-Hour Chart Analysis

Featured image from 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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4.7 stars on average, based on 394 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

EOS Update: Preparing for a Big Bullish Move

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EOS has been stuck in a range since August 8, 2018. It’s been trading between $6.65 and $4.50 with a midpoint of $5.30. If you’re a day trader, the range is wide enough to exploit and generate serious profits. However, this is not the case for many retail investors who bought the bottom and are anticipating the next big rally. They’d want to know when EOS (EOS/USD) would make another substantial move.

The good news is we are certain that it’s soon, very likely within a month. The next question would be the direction. This is something we’ll never be 100% certain of. However, we looked at the charts and we’re confident that this move will usher in a new higher high.

In this article, we reveal how this coin is preparing for a big bullish move.

Unnerving Lack of Volatility

EOS has been slowly flatlining since September 2018. The trading range has become tighter and tighter with each passing week. You can see the almost non-existent volatility in the weekly RSI. The indicator has moved within a three-point range (42 – 45) in the last two months.

Weekly RSI range

In addition to the weekly RSI, the daily trading range has been suffocating. The last time Bollinger bands were this tight was about a year ago. It was at the point before EOS launched a massive bull run.

Daily Chart

Before you get excited, we have to be clear that narrow trading ranges do not necessarily foretell a bull run. However, it is a prelude to a big move. It is the proverbial calm before the storm. The storm, we believe, will nourish the bellies of starving bulls.

Alleviating Resistance to Support (RS) Flip

EOS has a diagonal trendline that cuts through both the bull and bear runs. The trendline started to exist on January 20, 2018 when it acted as resistance and prevented the market from going above $15.75. The first RS flip happened on April 24 when EOS breached resistance of $12.00. This helped the market climb to $23.029 on April 29.

The diagonal trendline continued to serve as a support for EOS until June 22 when the market breached support of $9.50. This effectively flipped the support into resistance. EOS worked very hard to take back the diagonal trendline but to no avail. As a result, the market dropped to lows of $4.1778.

Diagonal trendline

The price action described above illustrates the impact of this trendline. It provides massive resistance when the market is below it. On the other hand, it offers firm support when EOS traded above it. Thus, the market would have been in a bad shape now if bulls would not have put up a strong fight. Luckily, they did.

With a series of higher lows, bulls eventually flipped the resistance into support on September 27. They also completed the retest when EOS dropped to $5.0014 on October 11. This tells us that bulls are mobilizing. It looks like they are quietly and patiently accumulating at these levels.

Promising Inverted EOS Chart

If you’re having trouble believing that EOS is starting to look bullish, then allow us to present to you the inverted chart. One look and you’ll know that this chart is prime for massive shorting.

Inverted weekly chart

This inverted chart looks like it already topped out. It tried really hard to take out resistance of $3.50 but it failed again and again. Its inability to breach the resistance led to exhaustion. You can see the rally fading in the declining volume. The market persistently rose even if volume steadily decreased. This is not a sustainable ascent.

As a result, the market appears to have broken down of an ascending triangle pattern. It is currently retesting the resistance but without volume, it is likely that the market will resume its descent. When it does, EOS will make its big move.

Bottom Line

With volatility almost non-existent, EOS appears to be preparing for a massive move. While this is something we are certain of, the direction is still not guaranteed. However, the recent RS flip of the diagonal downtrend and the inverted weekly chart make us believe that EOS is gearing up for a big bullish move.

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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3.7 stars on average, based on 269 rated postsKiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and ETFs, as he does his own crypto research and is the subject matter expert at ETFdb.com. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.




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