Connect with us

Analysis

Technical Analysis: Market Remains Choppy as Bears Still in Control

Published

on

The major coins are trading in a relatively low volatility environment today, with weekend-like volumes, and narrow trading ranges in most of the largest currencies. The day started out in a bullish fashion, but the early rally stalled yet again, and now, the market is little changed compared to yesterday’s levels.

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

Bitcoin continued to trade near the key $11,300 level, as the downtrend in the most valuable coin remained dominant. BTC is neutral from a short-term momentum perspective, while the long-term picture is getting oversold, but we still expect a move towards the prior correction lows near $9000, and a dip to new lows is possible, with further support levels at $8220 and $7650. Long-term investors could still add to their holdings near the major support zones, while traders should wait for a trend change before entering new positions for a more bullish setup.

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 -- //

As correlations remain generally high, in-line with the ongoing correction, most of the major altcoins followed the moves BTC throughout the session. That said, Ripple has been notably weak, still struggling with the declining trendline that is found right at the current price level. The coin is trading above the $1.25 level for now, but we expect the bearish trend to continue, with a likely test of the $1 level, and a possible move towards the crash low at $0.85.

XRP/USDT, 4-Hour Chart Analysis

Ethereum

ETH/USD, 4-Hour Chart Analysis

Ethereum remained relatively strong in the choppy environment, but it is stuck in a narrow range above the $1000 level, near the declining trendline. The coin is overbought from a long-term perspective, and despite the current strength, we expect the correction to remain intact with a likely dip below the recent lows.  Below the $740-$750 support zone, other levels and found at $850, $625, and $575, while primary resistance is ahead at $1175.

Litecoin

LTC/USD, Daily Chart Analysis

Litecoin is among the weakest majors, as it has been the case for weeks now, and the coin is still trading around the $170 and $180 levels, in a dominant downtrend. LTC faces strong resistance near $200, and although further choppy trading is possible, we expect a test of the crash lows in the coming weeks, with a likely drop to $125 and a possible move to $100 before the end of the cycle.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash showed some relative strength today, and the coin got back in the crucial support/resistance zone that surrounds the $825 level. With the declining short-term trend in the coin being clearly intact, we expect a move to the crash low, with a possible new low before the end of the current cycle. That said, long-term investors could add to their positions on the short-term sell-offs near the main support zones.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

Ethereum Classic has been virtually unchanged in the last days, so the coin is still stuck at the $30 price level, trading in a narrow and choppy range. The long-term setup is more and more encouraging, although the short-term picture is still bearish, and a move towards $25 and $23 is likely before a durable rally.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero showed some relative weakness today, although the moves in the coin were not significant, leaving both the short- and long-term outlook unchanged. The coin still looks negative on all time-frames although as the segment-wide correction matures, investors could add to their holdings on the short-term sell-offs near the major support levels below $300, at $240 and $200.

NEO

NEO/USDT, 4-Hour Chart Analysis

NEO bounced lower off the lower boundary of the prior uptrend, as the coin is likely continuing the correction that started amid the crash last week. We expect the coin to dip below the $100 level during the cycle, with further support levels found at $80, $64, and $56. The long-term momentum is still overbought while the short-term setup is neutral thanks to the consolidation.

IOTA

IOTA/USD, 4-Hour Chart Analysis

IOTA is still among the weakest majors form a short-term perspective after a very bearish week, but the long-term momentum is headed towards oversold readings, and although we expect a move below the crash lows, a durable bottom might be close in time. Support levels are found at $2.35, just below $2, and at $1.5.

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
10 votes, average: 4.50 out of 510 votes, average: 4.50 out of 510 votes, average: 4.50 out of 510 votes, average: 4.50 out of 510 votes, average: 4.50 out of 5 (10 votes, average: 4.50 out of 5)
You need to be a registered member to rate this.
Loading...

4.7 stars on average, based on 115 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.




Feedback or Requests?

3 Comments

3 Comments

  1. mzl961

    January 25, 2018 at 11:41 pm

    Bitcoin support at $822? Getting all my savings ready to buy;) . Might want to edit…

    • Edward Talliot

      January 26, 2018 at 1:23 pm

      Fixed, thank you.

  2. mvppvm_07

    January 25, 2018 at 11:48 pm

    The headline might have better said:”Take Profits As It Appears Stronger Lows Lurk”. Based on this analysis, I might roll the dice, pull everything out. Wait. I’ll kill the bear later rather than be chased by it.

You must be logged in to post a comment Login

Leave a Reply

Analysis

Daily Analysis: Oil Extends Rally as Nasdaq Leads Stocks Higher

Published

on

Friday Market Recap

Asset Current Value Daily Change
S&P 500 2749 1.38%
DAX 12,483 0.18%
WTI Crude Oil 63.58 1.29%
GOLD 1330.00 -0.16%
Bitcoin 10,14 -0.09%
EUR/USD 1.2295 -0.28%

US equities built up some bullish momentum towards the end of the week, ignoring the technical damage that the volatility-crash caused, and the major US indices rallied into the close today, squeezing the shorts. The Nasdaq, which led the rally as we expected, took out the key 6850 level in late trading and added another percent to, incredibly enough, finish only a hundred point of the all-time high.

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

NASDAQ 100 Futures, 4-Hour Chart Analysis

Should the tech benchmark retest the high next week, it will be amid very strong negative divergences, but hey, those divergences have been building for months now. The rally in equities was boosted by the dip in Treasury yields, especially at the long end of the curve, while Amazon continued ot lead the charge, closing right at the historic $1500 per share level.

// -- 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 -- //

Russell 2000 (Small Cap) Index, 4-Hour Chart Analysis

The advance in the Dow and the S&P 500 is much less convincing and with small caps also lagging the tech-behemoth juggernaut, we remain skeptical regarding the sustainability of the move. That said, if the broader indices stay above the key levels, we will be trading the long side in equities, even as from an investment standpoint, valuations are still way above acceptable.

Forex Markets and Commodities

The lackluster performance of European and Asian stocks adds to the negative divergences, especially as the Euro stopped appreciating against the Greenback, and that should be helping stocks of the old continent. Of course, the DAX and the EuroStoxx 50 could play catch-up next week, barring another surge in the common currency.

EUR/USD, 4-Hour Chart Analysis

The most-traded forex pair remains in a short-term downtrend, as it failed to recapture the previously broken rising trendline, and the commodity related risk-on currencies also remained under pressure. The Canadian Dollar did bounce back off yesterday’s 8-week lows, boosted by the much hihger than expected inflation release and the jump in the price of crude oil.

USD/CAD, 4-Hour Chart Analysis

Oil benefited from the positive shift in sentiment, while the Syrian situation, which took a backseat in the headlines, still supports the rally. The Japanese Yen and gold were stable amid the risk-rally and that adds to our suspicions regarding the upside potential form these levels.

Cryptocurrencies

The segment started out the day with a strong bounce that carried the major coins higher by around 10%, but given the recent steep short-term pullback, even that wasn’t enough to turn the tide, and the day ended with an (almost usual) sell-off after the US close. Despite the recent volatility, the overall picture is still encouraging, with most of the majors being safely above the crash lows, likely in a new bullish cycle that has the potential to last for several more weeks or even months.

While new all-time highs are it guaranteed following the 60-70% declines among the largest coins, but even without those, plenty of upside potential is left for investors. With that in mind, investors should hold on to their coins and even add to their holdings on the short-term dips like the current one.

ETH/USD, 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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
3 votes, average: 4.67 out of 53 votes, average: 4.67 out of 53 votes, average: 4.67 out of 53 votes, average: 4.67 out of 53 votes, average: 4.67 out of 5 (3 votes, average: 4.67 out of 5)
You need to be a registered member to rate this.
Loading...

4.7 stars on average, based on 115 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.




Feedback or Requests?

Continue Reading

Analysis

Technical Analysis: Majors Stage Rally but Strong Levels Still Ahead

Published

on

The cryptocurrency segment has recovered from a broad correction today in early trading, with the most valuable coins all turning into green during the session, despite the bearish start to the overnight session. With bottom-to-top gains of up to 15%, the rally helped in easing the worries of bulls, especially in the case of the relatively weaker coins.

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

Bitcoin and most of the largest altcoins remained stable during the selloff, and BTC recaptured the $10,000 level quickly after trading as low as $9600 overnight. The initial rally topped out near $10,400, and the coin is trading back near the $10,000 level, as the bullish momentum faded away somewhat.

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 -- //

That said, we expect the uptrend to continue even if the correction could still carry Bitcoin lower. Further strong support is found between $9000 and $9200, while targets are ahead at $11,300, $13,000, and $14,250.

ETH/USD, 4-Hour Chart Analysis

Ethereum showed strength during the bounce again after yesterday, together with the early leaders of the rally, and although the coin dipped below the $845 level in the second half of the session, the signs remain positive for bulls. Support levels are now found at $780, $740, $625 and $575, while resistance is ahead near $910 and $1000.

(more…)

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
6 votes, average: 4.83 out of 56 votes, average: 4.83 out of 56 votes, average: 4.83 out of 56 votes, average: 4.83 out of 56 votes, average: 4.83 out of 5 (6 votes, average: 4.83 out of 5)
You need to be a registered member to rate this.
Loading...

4.7 stars on average, based on 115 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.




Feedback or Requests?

Continue Reading

Analysis

Pre-Market: Stocks Refuse to Fall Even as China Takes Over Key Insurer

Published

on

Although it should have been a very quiet week in China, thanks to the New Year celebrations, the recent surge in volatility and the plunge in equities didn’t pass without consequences in the key market. Just shortly after effectively shutting down the Chinese version of the Volatility Index (VIX) (presumably to calm the markets…), one of the main actors of the monstrous financial web, Anbang, of the country had to be taken over to avoid a systemic event and stop the “creative” financial engineering that involved criminal activity (the shadow of 2008).

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

China will likely need many more duck-tapes like this one if it wants to stop the largest credit bubble in human history to collapse, but for now, the solution could work. Equity futures edged higher since yesterday’s volatile close, and as the major US indices are holding up well, not far off last Friday’s highs, our bearish short-term view might have to be revised.

Nasdaq 100 Futures, 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 -- //

As we discussed before, the long-term uptrend is intact, and we expect at least a re-test of the highs even if we are in a large-scale top formation, but we thought that the technical damage caused by the crash three weeks ago would require more healing.

We are not turning bullish just yet, but today’s session could finally decide if we the BTFD-crowd is strong enough to turn the tide after the choppy drift lower this week. We are still focusing on the Nasdaq, as the broader market seems to be following the lead of the tech benchmark, and a move 6850 (in the Nasdaq 100 futures, and still the 2735 level in the S&P) would be a very positive sign for bulls.

DAX Index, 4-Hour Chart Analysis

The German DAX index is also showing some tentative short-term relative strength although it remains almost 10% below its all-time high, and it remains a strong negative divergence to be monitored.

Forex Markets Quiet

EUR/USD, 4-Hour Chart Analysis

The main pairs are trading in a choppy narrow range today after the strong move in the Yen and the drop in the USD yesterday. US Treasury Yields are edging lower today, helping the calm in equities and currencies, but on a bearish note, commodity currencies failed to rebound so far, and they were providing good signals since the crash. Day-traders should note that the Canadian Dollar will likely be very active again, with the Canadian CPI report coming out pre-market.

To sum the outlook up, we are still leaning on the risk-off side here regarding the short-term outlook, but we wouldn’t bet the farm on that, as there are mixed signals before the weekend.

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.7 stars on average, based on 115 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.




Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending