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Technical Analysis: IOTA Surges as Bitcoin Tops $7200 Again

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Altcoins continued to shine in the last couple of days, but for a change, Bitcoin rallied together with the other majors, as the Bitcoin Cash chaos of the weekend fizzled out although the BTC and BCH still trade with high volumes.

The best performing major is IOTA today, as the explosive break-out in the coin reached its next phase, easing through the $0.64 resistance and heading towards the next target at $0.75 with both the long- and short-term picture remaining positive. That said, long-term investors shouldn’t enter new positions here, as the currency is close to being overbought after the more than 100% rally. Support levels below $0.64 are found at $0.56 and in the $0.45-$0.48 zone.

IOTA/USD, 4-Hour Chart Analysis

The other major altcoins are almost all positive today, with the exception of Dash and Monero, as both coins are in short-term corrections after their break-out. NEO is virtually unchanged, while Ethereum, Ethereum Classic, Litecoin, and Ripple are all slightly higher today. As the total value of the market is drifting higher despite the recent turmoil more bullish moves are likely among altcoins. Let’s see the detailed short-term picture.

Bitcoin

BTC/USD, Daily Chart Analysis

Bitcoin rose above the crucial $6700 and $7000 resistance levels today, and It breached the previously rising short-term trend, showing surprising strength in the face of the negative outlook on the daily chart. Despite the advance, we still expect the correction to continue after the previous stellar rally with a drop to the $5000-$5400 zone.

Ethereum

ETH/USD, 4-Hour Chart Analysis

Ethereum is testing the $330-$350 resistance zone, as it remains within the advancing long-term trend, still showing stability in the volatile segment. The coin is expected to hit $380 soon, with the prior all-time near $400 being the next target ahead. Below $330 support is found at $315 and $300.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin continued to track the moves in Ethereum in the last couple of days, and it reached the $64 level yet again. The coin is still within the short-term consolidation pattern, trading in the range between the key $56 and $64 levels. The short-term MACD is back to neutral territory, and we expect a move towards the targets at $75 and $82.50 on the coming week.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash trades in a short-term correction pattern since the explosive break-out and pull-back of the weekend, with the prior all-time high near $400 still being in the center of attention. The coin remains bullish on all time-frames and another leg higher above $500 is likely in the coming weeks. Support below $400 is found at $360, and near the $330 level.

Ripple

XRP/USD, 4-Hour Chart Analysis

Ripple remains one of the least active coins, still trading near the $0.20 level, with no significant momentum in either direction. The long-term outlook is still positive, but traders should wait for a bullish move above the resistance zone near $0.2250 level before entering new positions. Support below $0.20 is still found at $0.18 and $0.16.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic remains stuck in a volatile short-term correction since topping the $20 level during the recent leg higher, and the short-term setup is still neutral, despite the rising trend. We expect further consolidation before another move, but a test of the $23 level is still likely in the current cycle, with support levels at $16 and $14.50.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero is also in a short-term correction pattern, as the rising trend remains intact but more sideways price action is likely before the next major move. We still expect a test of the all-time high near $150, as the long-term picture is not yet overbought. Key support below the current price level is found at $100, the upper boundary of the previous lengthy trading range.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO recovered well from a period of relative weakness, but despite the bullish long-term outlook, the coin remains stuck below the key $30 level, and traders should still wait for a break-out before entering new positions. Targets are still ahead at $34 and $40, while key support levels are found at $27 and $25, and momentum remains neutral on all time-frames.

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 377 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

EOS Price Forecast: EOS/USD Heading for Another 300% Move?

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  • EOS/USD price action via the 4-hour chart view has formed a bullish flag pattern.
  • The price is moving around levels seen back end of March to early April, before a bull run of over 300%.

The past six sessions for EOS/USD have been erratic to say the least. It has been subject to a high amount of volatility, swinging aggressively in both directions. There has been a lack of commitment from either the bear or bull camps of late. As the market continues to trade with such behavior, it appears to be trying to find its feet, ahead of a potential chunky firm trend.

EOS DApp Hacked Again

An EOS based gambling DApp, EOSBet has been hacked, with $338,000 being reported as stolen. This isn’t the first time; just back in September, hackers managed to get away with a reported 40,000 worth of EOS, which at the time had a value of $200,000. It has been said that they were able to exploit their smart contracts, having found security vulnerabilities.

Technical Review – 4-hour Chart View

EOS/USD 4-hour chart

EOS/USD price action has formed a bullish flag pattern, which began taking shape on 15th October, after the aggressive price behavior stabilized. The bulls at the time ran the price well up into $6 territory. Consequently, it then met the breached ascending trend line, failing to move back above this area. This followed the sharp breakthrough to the downside, which occurred on 11th October. As a result, a drop of over 15% was seen, forcing EOS/USD to retreat in a demand area, within the $5.0000 level proximity.

Looking to the upside, small near-term resistance is seen at around $5.6100, which is the upper trend line of the mentioned bull flag pattern. A breakout will likely open the doors to a retest of the broken ascending trend line, tracking around $6.1100. Support can be eyed at $5.4600, which marks the lower trend line of the flag. Furthermore, should this fail to hold, EOS/USD could likely fall back down to the serving demand area, within the lower $5.0000 territory.

April 2018 Bull Run

EOS/USD April bull run

In April of this year EOS/USD entered a chunky bull run, gaining over 300%. From the back end of March until 11th April, the price had been stuck within consolidation mode. Resulting in the price trading within a tight range, at levels of where the price is currently seen today.

Something quite astonishing started to unfold. Between the period of 11th April to the 29th April, a bull run of around 290% was seen. Over this time frame EOS/USD went from $5.9500 up to a high of around $23.0811. The price is currently demonstrating a similar behavior to that of what was seen during the mentioned period. It is interesting to note that the price did have historical levels to break through, as it had already run higher during the period of December 2017 and came back down. Finally, this is not to say EOS/USD will observe the same bull run. However, it is an interesting observation to be aware of.

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 30 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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Pre-Market Analysis And Chartbook: Risk Assets Under Pressure as Fed Minutes Loom

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Wednesday Market Snapshot

Asset Current Value Daily Change
S&P 500 2,789 -0.98%
DAX 30 11,715 -0.52%
WTI Crude Oil 69.79 -3.27%
GOLD 1,229 0.13%
Bitcoin 6,429 -0.49%
EUR/USD 1.1528 -0.38%

While yesterday we saw a huge oversold rally in equities, with the help of positive corporate earnings, the easing of the US-Saudi standoff and the stability in Treasury yields, today investor sentiment shifted yet again.

Negative news regarding the US-Chinese trade war, which is very likely to intensify before the US midterms, dismal European car sales, and continued worries with regards to the Italian budget and the Brexit process all acted as bearish catalysts.

DAX 30 Index CFD, 4-Hour Chart Analysis

Although European markets followed the lead of Wall Street and rallied today in early trading, the major indices are already well below their intraday highs, after turning back from the first levels of resistance. The DAX ran into resistance near the 11,850 level, below the crucial 12,000 level that could be the line-in-the-sand in deciding the long-term outlook going forward.

The German benchmark, the FTSE 100, and the EuroStoxx 50 are all in strong declining trends, and with the most important Asian markets also under strong short-term selling pressure, the US markets have a steeper and steeper mountain to climb should they resume the bull market.

Nasdaq 100 Futures, 4-Hour Chart Analysis

The Nasdaq opened slightly below yesterday’s cash close, underperforming the Dow and the S&P 500, and since then sellers have been in control of the market. The Russell 2000 that has been showing the way for the broader market lately is deep in the red as well, and we still think that risk assets are facing a prolonged correction if not an outright bear market.

Treasury yields are stable before today’s most important release, the minutes from the Fed’s latest meeting, but the dynamics of the quantitative tightening (the shrinking balance sheets of the global central banks) are likely behind the faltering of global risk assets.

VIX Pulls Back as Dollar Attempts Rally

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

The US Volatility Index fell significantly amid the bounce in stocks, hitting the key 17 level yesterday after plunging below 20, but the chart of the measure still confirms the regime change that would be consistent with a prolonged bearish period. While the bounce could still continue, forming a more complex pattern, the volatility-conditions could very important to judge the stability of the market.

EUR/USD, 4-Hour Chart Analysis

Forex markets continue to experience heavy trading, and today the US Dollar is trying to gain back momentum after its recent correction. Although the worse than expected housing data (building permits and housing starts both missed expectations) could have been bearish catalysts today, the Greenback held on to most of its early gains.

Should the reserve currency form a swing low and continue its broader rising trend, emerging markets could be back in the crosshairs, and risk assets would face another problem. All eyes are on the support zone near 1.15 in the EUR/USD pair, as a move below that would be a bullish sign for the USD, and it would warn of a test of the August low near 1.13.

ChartBook

Major Stock Indices

S&P 500 Futures, 4-Hour Chart Analysis

Dow 30 Futures, 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

WTI Crude Oil, 4-Hour Chart Analysis

Gold Futures, 4-Hour Chart Analysis

Copper 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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4.6 stars on average, based on 377 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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Crypto Update: Altcoin Market Cap on the Verge of Trend Reversal

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Fund managers and investors often rely on a market index to get a general sense of where the market may be headed. Usually, an index is the weighted average of the largest or the best performing equities in the market. For example, the Standard and Poor’s 500 Index (SPX) is the combination of 500 of the largest US stocks represented as one index value. These indices act as a barometer as they represent and influence the performance of the entire market.

For someone who invests in stocks and cryptos, I understand the importance of an index and apparently, I’m not alone. Cryptocurrencies don’t have an official index that could serve as a weather vane so someone created one. The creator/s of coinsignals.trade pulled data from coinmarketcap.com to provide charts and candles and reflect the price movement of the entire altcoin market (coin market capitalization minus bitcoin capitalization). This gives us the opportunity to analyze the direction of all altcoins. What we saw was promising.

In this article, we reveal how the altcoin market cap is on the verge of reversing its trend.

Weak Breakout from Falling Wedge  

The altcoin market cap managed to go as high as $554.916 billion in January 2018. At that market cap level, the parabolic run of altcoins came to a screeching halt. The market went into a downward spiral as it generated a series of lower highs and lower lows. A quick look at the weekly chart shows that the market cap was inside a large falling wedge.

The weekly chart of Alts

The market eventually broke out of the pattern in September 2018. However, the breakout had no legs as volume was actually thinner than its weekly average. Even so, alts attempted to generate a breakout rally, which was firmly rejected at $112 billion several times. As a result, the market tumbled.

Nevertheless, this weak volume breakout would set the stage for the market’s bounce.

Key Support Levels to the Rescue

In technical analysis, former resistances become reliable support areas. These former resistances turned out to be crucial in the bottoming out process of the altcoin market.

A quick look at the daily chart reveals that two support levels have kept bears at bay. The first one was the former resistance of the falling wedge. Notice how the altcoin market smoothly slid down to this support without breaching it. Even though this support is weak, it proved to be instrumental in the market’s bounce.

The daily chart of Alts

The other one is the parabolic support of $80 billion. This support was also a former resistance level. The altcoin market struggled to get above this level in October 2017. When it did, altcoins soared. The market apparently remembers this price action even after a year later as participants bought at this area.  

We’ve seen numerous altcoins such as Ripple (XRP/USD) and Monero (XMR/USD) become bullish after bouncing off parabolic support levels. Will we see the same action for the entire altcoin market cap? Perhaps, the emerging pattern on the daily chart can give us more clues.

Potential Inverse Head and Shoulders on the Daily

The market’s bounce at $80 billion was met with heavy selling at $112 billion on September 23. This is the same level that rejected the breakout rally that would have turned the market bullish. With bears defending the resistance, the altcoin market lost over $22 billion in value as it pulled back below $90 billion.

Inverse head and shoulders in the making

The good news is the retracement has enabled bulls to create a bullish higher low setup. This is the first higher low generated by the altcoin market in 2018. This is a huge development. If the lower high can kill bullish momentum, the higher low can suck the energy out of bearish momentum.

With a higher low in place, it appears that the altcoin market is creating an inverse head and shoulders pattern in preparation for a bullish breakout. I’ve said it many times: this is one of the most reliable structures in reversing a market’s trend. If altcoins follow the projected path, then we’re on the verge of a bullish breakout.

Bottom Line

Our analysis of the altcoin market capitalization chart reveals that the market is on verge of taking off. The weak breakout from the falling wedge, bounce from key support areas, and the emergence of an inverse head and shoulders pattern are all setting the stage for a massive crypto comeback. To those who are still bearish, maybe it’s time to reconsider your stance.

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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3.6 stars on average, based on 249 rated postsKiril is a financial professional with 4+ 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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