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Cryptocurrencies

The Weak & the Strong

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The old saying in the market “buy the rumor, sell the news” only sometimes applies to cryptocurrencies.

For example, when the segwit solution was implemented on Litecoin it improved the speed of transactions but since there were so many people buying the coin before the implementation happened, on May 10th once it actually went into effect the price peaked.

Those buying for the long term do feel that this is a minor setback and that in a year from now the price will be much higher.

On Ethereum, it seems that the good news never stops coming. To the point that it is impossible to tell exactly which bit of good news is affecting the price.

This network is the only one built specifically to incorporate smart contracts and more and more people are seeing it as the future of the internet.

-Mati

Please note: All data, figures & graphs below are valid as of May 22nd. All trading carries risk. Only risk capital you’re prepared to lose.

Market Overview

With Trump still on tour in the Middle East, it seems the stock markets are enjoying a bit of a relief rally.

The seasoned deal maker managed to close plenty of deals in Saudi Arabia and will be landing in Tel Aviv shortly. Of course, in dealmaking and in politics sometimes you need to dial back and sometimes you need to double down.

In order to achieve success in Saudi Arabia, President Trump has dialed back his criticism of the Islamic faith and doubled down on his anti-Iran rhetoric. Seems a strange thing to do on the same day that Iran has overwhelmingly voted to keep their liberal Western-minded leader.

Meanwhile, North Korea continues their provocative missile tests despite many warnings from the United Nations. Last night, Pyongyang confirmed another medium range ballistic missile.

Over in the UK, Theresa May seems to be struggling to keep her lead. eToro investor Mark Eden AKA @InvestusMaximus pointed out that since the Labour party announced their agenda, they have significantly narrowed the polling margins.

Mark writes…

He goes on to say that voter sentiment requires further attention as price action on the Pound Sterling could return to focus on politics early this week.

On a technical level, the Sterling is not in a good position at all. The breakout of the 1.3000 level was not very strong and this morning we find ourselves about 10 pips below the dotted line.

Risk sentiment is not very clear in the markets at the moment. Both Gold and USDJPY seem to be flopping around without any clear direction.

Oil is focused keenly on the OPEC meeting this Thursday. Wide expectations are that we’ll see production cuts through the first quarter of 2018. It will be difficult for them to deliver anything beyond this already ambitious goal that the markets seem to already have priced in.

Cryptocurrency Milestones

Clients and employees in eToro seem to have only one thing on the brain. Cryptocurrencies Bitcoin and Ethereum have both had a spectacular weekend.

Bitcoin has broken through a very important barrier and is now trading above $2000 per coin. It has already seen a pullback and used the 2k level as support to climb higher.

This is what we call a strong breakout…

Ethereum is a different animal altogether. After breaking a new all time high on Friday of 96.75 the price has skyrocketed and now finds itself all the way at $159 a coin. This represents a massive 39% growth just over the weekend

The overall value of all digital assets in circulation has reached $77.5 Billion. This is more than triple what it was at the start of the year.

We maintain our stance. If indeed the world is moving towards a digital economy that relies on the blockchain for both money and computer applications, this number will need to rise exponentially in order to support this type of growth.

Let’s have an awesome day ahead!!

This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation.

Past performance is not an indication of future results. All trading carries risk. Only risk capital you’re prepared to lose.

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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Analysis

Crypto Update: Coins Extend Losses as Bulls Fail to Show Up

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While the major cryptocurrencies haven’t been able to gain ground following Monday’s Tether-induced turmoil, the market has been stable in the past few days, and the top coins managed to hold up above their short-term support levels.

After yesterday’s slightly bearish session, overnight, Bitcoin, Ethereum, and Ripple all drifted the narrow ranges that developed during the week, and most of the smaller coins also turned lower, even as volatility remains relatively low.

The total value of the market dropped to $207 billion, but it’s still well above the bear market low, and the segment avoided a major technical breakdown that was looming after last week’s selloff. That said, the long-term picture is still bearish in the case of most of the majors, and our trend model is also on sell signals across the board from a short-term perspective.

On another negative note, Ripple and Stellar also joined the decline yesterday after showing strength this week, and the segment is still missing a bullish leadership.


BTC/USD, 4-Hour Chart Analysis

While Bitcoin dropped below the very narrow post-spike trading range, it continues to trade above the primary support level near $6275, and well above the lows from last week. We maintain our short-term sell signal on the coin, as it failed to recapture the $6500 level, and although the long-term signal is still neutral for BTC traders still shouldn’t enter positions here.

Further resistance levels are ahead near $6750 and $7000, while above the key long-term support zone near $5850, a weaker level is also found near $6000 and the next major zone is between $5000 and $5100.

Ethereum Dips Below $200 as Ripple Tests Long-Term Zone Again

XRP/USD, 4-Hour Chart Analysis

As Ripple’s relative strength faded, the third largest coin quickly gave back most of Monday’s gains, and now it trades right at the key long-term support/resistance zone between $0.42 and $0.46 zone. The lack of bullish follow-through is a negative sign for the whole segment and it gave another confirmation of the still apparent selling pressure on the majors.

With that in mind, traders still shouldn’t enter positions here, even as XRP remains above the recent triangle consolidation pattern, with strong resistance ahead at $0.51, $0.54, $0.57, and with further resistance zones found near $0.375 and $0.35.

 

ETH/USD, 4-Hour Chart Analysis

Ethereum showed no sign of relative strength this week, and the coin is back below the $200, although the decline also lacked momentum so far. The second largest digital currency is clearly above the next strong support level at $180, with further levels just below that near $170 and $160.

ETH remains on sell signals on both time-frames given the dominant broader declining trend and the short-term weakness, and odds still favor the test of the bear market low in the coming weeks, with strong resistance levels still ahead at $235 and $260.

IOTA/USD, 4-Hour Chart Analysis

Most of the smaller altcoins are also under clear selling pressure, with the likes of Monero, IOTA, EOS, and NEO all drifting lower in the past couple of days. Litecoin also followed the broader market lower so far today, and the coin is already testing the key $51 level, as we expected after showing weakness earlier on this week. A move below primary support would warn of a test of the bear market low near $47 with the next major zone found at $44.

LTC/USD, 4-Hour Chart Analysis

With that in mind, traders and investors should stay away from the coin until at least s short-term trend change, with strong resistance levels ahead near $56, $59, and $64.

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 379 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

A Tale of Two Pumps: PIVX and INS Ecosystem in Coordinated 25% Spikes on Bithumb Listing

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PIVX (PIVX) was added to Korean cryptocurrency exchange Bithumb on Thursday afternoon and immediately felt a 28% boost to its market value. The pump appears to have been a coordinated effort, with $1 million worth of trades entering the PIVX market in ten minutes on the Upbit exchange.

The other coin added to Bithumb on the same day – INS Ecosystem (INS) – also experienced a similar pump at the exact same time, but on Binance’s INS/BTC market.

Upbit PIVX Pump

At 01:00 UTC on Thursday morning, PIVX/KRW suddenly soared on Upbit, with $1 million entering the exchange in a matter of minutes.

Buy orders then picked up in the Binance PIVX/BTC market soon afterwards, and by ninety minutes later PIVX had climbed 28% in value – from a coin price of $1.26 to $1.62.

The peak didn’t last long, and by Thursday night PIVX can be found back down at the $1.34 mark. Essentially the 28% growth was followed by a 17% loss. Or to put it another way, 75% of the morning’s spike was gone less than twelve hours later.

Daily volumes for PIVX climbed from $1.4 million to $16 million over the course of the day. The Bithumb trades had already started to roll in by Thursday evening, with $1.2 million coming from the exchange’s newly formed PIVX/KRW pair. Upbit continued to be a source of PIVX buys long after the initial pump, hosting 60% of the coin’s total trades.

INS Pump on Binance

Meanwhile, at the exact same time over on Binance, INS Ecosystem (INS) found itself being bought up in huge numbers by one or more BTC holders.

Within ten minutes INS was pumped to the tune of 26%, as $600,000 was added to the coin’s initial $900,000 trade volume. Over the rest of the day, volumes rose over 500%, peaking at over $6 million at time of writing.

INS Ecosystem was mentioned alongside PIVX in the recent Bithum announcement, and already boasts listings on Binance, Kucoin and OKEx. Over 66% of trades came from Binance on Thursday, while the new INS/KRW pair on Bithumb immediately made itself felt, hosting $2.5 million worth of trades.

After suddenly spiking from a coin price of $0.469610 up to $0.592142, INS immediately trailed off, and found itself back down at the $0.50 range by Thursday night.

Who, What, Why?

Both coins were pumped seemingly just moments before this announcement by Bithumb was posted. The Korean publication time for the article equates to 01:00 UTC exactly, while both of these coins were pumped at exactly 00:59 UTC.

One could only speculate on the source of the pumps, but ultimately, two coins have been thrown around like rag dolls today, and it’s anyone’s guess how long the selloff will continue.

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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4.4 stars on average, based on 81 rated postsGreg Thomson is a full-time crypto writer and digital nomad. He eats ICOs for breakfast and bleeds altcoins. Wherever he lays his public key is his home.




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Altcoins

Gemini Dollar Approaches Parity with USD After Rocketing Higher Earlier in Week

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The newly launched Gemini Dollar (GUSD) has come back down to earth after its premium over the greenback approached 20% earlier in the week, offering yet another sign that stablecoins are anything but.

GUSD Update

After reaching a high of $1.19 on Tuesday, Gemini’s GUSD token has consolidated at $1.01, according to CoinMarketCap. At current levels, GUSD more or less serves its function as a dollar-pegged stablecoin.

GUSD has a total supply of 1.22 million units but the amount in circulation is unknown. Daily trade volumes amounted to $7 million on Thursday, according to the latest available data.

The sudden upsurge in GUSD followed a large-scale selloff of USDT, another dollar-backed stablecoin. USDT not only lost its peg to the dollar on Monday, it crashed to a low of around $0.89. That was the lowest in 18 months.

Gemini Dollar Overview

As the name implies, GUSD is the native stablecoin of Gemini, a regulated cryptocurrency exchange founded by Cameron and Tyler Winklevoss. The coin was launched in September after the brothers obtained regulatory approval from the New York Department of Financial Services to issue a dollar-pegged cryptocurrency.

As a stablecoin, GUSD is supposed to be pegged to the U.S. dollar on a one-for-one basis, giving traders access to instant liquidity on the Gemini platform without funding delays. This means every unit of GUSD issued must have a commensurate supply of fiat dollars in a Gemini bank account. This gives Gemini the discretion to release more GUSD tokens as its fiat-currency reserve grows.

Gemini claims to offer the world’s first regulated stablecoin backed by proven reserves at State Street Bank and Trust Company. The company’s focus on regulatory transparency contrasts markedly with other stablecoin projects, which have come under fire for their failure to produce a verifiable audit of their accounts.

Tether’s USDT is the most popular stablecoin in circulation, accounting for more than a fifth of all trade volumes of virtual currency exchanges, according to CoinMarketCap. Tether has been subpoenaed by the U.S. Commodity Futures Trading Commission (CFTC) amid allegations it was pumping bitcoin’s price by issuing more tokens than it has in reserves. The company also shares key executives with Bitfinex, the primary exchange accused of facilitating the pump.

Although Tether has avoided legal troubles, it has faced growing suspicion from market players. This came to a head on Monday after USDT lost its peg to the dollar.

It remains to be seen whether GUSD will become a viable alternative to USDT. Its regulatory backing paints a positive picture for the future of stablecoins, but its direct ties to Gemini could limit adoption given the exchange’s relatively small scale. As of Thursday, Gemini was the 43rd largest exchange based on adjusted trade volume.

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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4.6 stars on average, based on 647 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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