As the new waves of regulatory changes keep on hitting the segment, the major cryptocurrencies are mostly lower today. After the major update of Ethereum, and the recent surge in the price of Bitcoin, choppy conditions developed, with no clear short-term trend in most of the coins.
NEO is the best performing major today, as it surged back to the $30 level after a frustrating period that was dominated by a downward drift. The coin is now just below the key resistance level, and it could be ready to test the $34 level, with a further target found at $40. The long-term picture still looks positive, with strong support levels at $27 and $25.
NEO/USDT, Daily Chart Analysis
Ethereum is in a consolidation after the encouraging rally towards the end of last week, while Bitcoin is also correction after its stellar rise. The two largest coins pulled the rest of the majors lower, while Ripple remained very volatile after touching the $0.30 level yesterday, trading below the $0.26 again.
Litecoin, Dash, Monero, and IOTA are all a bit lower today, while Ethereum Classic found some relative strength, although it remains stuck in a declining short-term trend. All in all, the segment is still in a clear uptrend, so let’s see which coins are the most promising regarding the short-term picture.
BTC/USD, Daily Chart Analysis
BTC trades in a bullish short-term consolidation pattern roughly between the $5400 and $5800 levels and the coin looks set to test the $6000 target despite the already stretched long-term picture. As the MACD is almost back to neutral territory, a move above the prior all-time high is likely in the coming days, but given the increasing correction risk, short-term traders should strictly control position sizes. Key support levels are found at $5400, $5000, $4650 and $4400.
ETH/USD, 4-Hour Chart Analysis
Ethereum moved below the key $330 level after the initial rally following the Byzantium update, as the short-term correction dominated the market. The long-term picture remains encouraging despite the pull-back and a rally towards $380 is still likely in the coming period. Further support is found at $315, $300, $285 with the all-time high ahead at $400.
LTC/USD, Daily Chart Analysis
Litecoin followed the broader market lower, dipping briefly below $60 after last week’s outstanding performance. The short-term MACD is getting close to neutral territory, and the continuation of the advance is likely in the coming days, with targets ahead at $75, and near the $100 level. Support levels are found below $60 at $56 and $51.
DASH/USD, 4-Hour Chart Analysis
Dash is still hovering around the $300 level within a lengthy consolidation pattern, with no change in the bullish long-term picture. The coin is likely to test the declining trendline soon, with resistance levels ahead near $330 and $360. Both the short- and long-term MACDs are in neutral territory now, with support below the current levels at $265.
XRP/USD, 4-Hour Chart Analysis
XRP failed at the $0.30 level once again following the spike higher yesterday, and it quickly moved lower, below $0.26 after the test. The technical setup remains unchanged despite the volatile moves, and a rally above the key resistance zone ahead is still likely, but more sideways action is possible before a decisive breakout. Support is still found at $0.24 and around the $0.22 level.
ETC/USD, 4-Hour Chart Analysis
Ethereum Classic attempted a rally above the short-term resistance at $12.50 again today in early trading, but the coin remained below the key level amid the broad decline in the segment. Above that line, further crucial resistance is ahead in the zone around $13.50, and short-term traders should still wait with opening new positions. Support is still found at $11 and $9, with more resistance at $16 and at $18.
XMR/USD, 4-Hour Chart Analysis
Monero held up well today amid the widespread move lower, and the coin still looks set to tackle the $100 resistance in the coming days. With the long-term picture still being encouraging, and the MACD showing neutral readings, a move towards $125 is likely in the coming period, as support is found near $80, and below that at $68.
IOTA/USD, 4-Hour Chart Analysis
IOTA is still stuck below the crucial $0.45-$0.48 support/resistance zone, and the declining short-term remained intact. That said, the long-term setup points to a rally towards $0.56 and $0.64 in the coming weeks, while support is found below the current price level at $0.35.
Featured image from Shutterstock
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.
Long-Term Cryptocurrency Analysis: Look Out Below?
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.
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
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.
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