Connect with us

Analysis

Technical Analysis: Litecoin Follows Bitcoin Higher as Market Tops $165 billion

Published

on

Bitcoin’s surge is all the rage today in the cryptocurrency segment, as the most valuable coin took out the previous all-time high near the historic $5000 level, and breached the $5300 level for a new record. The digital currency has enjoyed another great run thanks to the fading worries regarding another hard fork, and the exponential growth of SegWit transactions in the system. Today, as a sign of improving sentiment, even Jamie Dimon took a step back after his widely cited criticism of cryptocurrencies.

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

The coin is clearly in short- and long-term uptrends, and although the short-term picture is overbought, further upside is likely after the break-out. Support levels are now found near $5000, $4650 and $4400, while the most likely long-term target is ahead at $6000.

BTC/USD, 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 -- //

Litecoin is also up substantially today following its recent weak performance, while last week’s leader Ripple continues to trade in an orderly correction. Ethereum is also up along with most of the majors, with only NEO and IOTA drifting meaningfully lower. As BTC is stealing the show right now, some under-the-radar moves may happen in altcoins, so let’s see the detailed short-term analysis.

Ethereum

ETH/USD, 4-Hour Chart Analysis

Ethereum is also up today, but only by a few percents, and it remains below the $315 level that has been limiting the upside since the China-crash. The coin is looking bullish regarding the long-term picture, and it held up well above the $285 support during the altcoin sell-off, so we expect a move above primary resistance soon. The currency faces further resistance near $380 while support is at $300, $285, and $250.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin bounced off the zone above the $51 support/resistance level today, but it remains below the $56 resistance that could be the next major hurdle for the coin’s price. The digital currency is now on a short-term buy signal thanks to the relative strength, and the long-term rising trend could resume. The coin also faces strong resistance $64, while below $51 strong support is at $44 and at $38.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash is still stuck below the $300 level, inside the dominant correction pattern. The long-term picture remains bullish for the coin, and we expect a move out of the consolidation in the coming weeks. The currency faces resistance near the $330 and $360 levels, and above that above $400 with support below at $265.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP settled down somewhat after a very active period, as it is drifting lower currently in a short-term correction pattern. The $0.26 level remains in focus as we expected, and a re-test of the $0.24 level is possible before the resumption of the underlying trend. Further support levels are now found at $0.22, and $0.20, with the primary target above $0.26 being the $0.30 price level.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic is experiencing some buying today, but the coin remains stuck in a short-term downtrend after the recent lackluster performance. Short-term traders should still wait with openinng new positions, at least until a break above $12.50, with the crucial zone around $13.50 still ahead as an obstacle, and support levels found at $11 and $9.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero is getting close to the declining trendline and the coin has been supported by quiet buying just below the $90 level, as a sign of long-term stability. The currency still looks bullish form an investment standpoint and a new uptrend could already start in the coming week. XMR faces resistance near $100 and $125, with support at $80 and $68.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO is still in correction-mode after tripling off the China lows, and touching the $40 resistance in the process. The coin is hovering around the $30 support/resistance level, and although another test of the $25 level is possible, a move towards $40 is likely in the coming weeks. Primary support is ahead at $34, while support below $25 is found at $22.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA is testing the lower boundary of the key $0.45-$0.48 support zone, as it remains relatively weak amid the Bitcoin break-out. The coin is still expected to rally back towards the $0.64 level in the coming weeks. Below that, resistance is ahead near $0.56, while long-term support is at $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

Technical Analysis: Litecoin Continues Surge as Bitcoin Tests Highs

Published

on

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.

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

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

// -- 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 -- //

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

(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

Long-Term Analysis of the Silver Market

Published

on

Silver

The silver market has once again caught investors’ interest as the price is nearing areas not seen since late 2008.

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

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:

// -- 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 -- //

Positives

  • 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.

Negatives

  • 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.

Silver chart

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.

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

Long-Term Cryptocurrency Analysis: Look Out Below?

Published

on

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.

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

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

// -- 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 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.

(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