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Wanna Take a Road Trip?

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After many blasts and sounds of gunfighting on the streets of Harare in Zimbabwe, it seems that the army finally has things under control.

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The 93 year old dictator Robert Mugabe is under house arrest for trying to set up his wife, AKA Gucci Grace, as the next leader. The military has seized control over the state media and is preparing for the first regime change in the countries modern history.

With the extremely volatile nature of cryptocurrencies, it’s difficult to view Bitcoin as a safe haven asset. But if you happen to live in a currency-less country in the midst of a coup that has ATM withdrawals capped at $20 a day, the worlds global digital currency seems to provide the only stable alternative.

One bitcoin is now going for about $12,499 in Zimbabwe’s markets. Anybody down for a road trip?

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@MatiGreenspan
eToro, Senior Market Analyst

 

Please note: All data, figures & graphs are valid as of November 16th. All trading carries risk. Only risk capital you’re prepared to lose.

Market Overview

The mild selling attitude that was observed on Wall Street has been completely reversed by Asian investors this morning. The Dow Jones fell 0.65 yesterday, which isn’t much but it is the biggest decline since September. After a big pushback, the China50 and Nikkei 225 are up more than 1.3% today.

This sudden surge in stocks comes as the currencies and commodities markets remain rather docile. There’s plenty of news events on the calendar today that could change that though and of course, all eyes are on Washington DC and the NYSE.

Sneaky Politics

Donald Trump’s Tax bill is expected to pass a vote in the House of Representatives today but it is very likely to fail in the Senate. Republicans took a bold move and tried to squeeze the “repeal of Obamacare” right into the tax cuts plan.

The new clause we will remove the fine for Americans who don’t purchase health insurance, a move that would basically render Obamacare impotent and topple the insurance companies. Sneakily, it would also reduce the effect of the tax bill on the long-term US deficit enough to allow House Republicans to pass the bill without the Democrats’ approval. Though this could be seen as progress, they’ve only brought themselves one step closer to a brick wall when the bill hits the Senate.

The promise of reduced corporate taxes has brought the stocks up quite significantly over the past few months and nobody really knows how well the prospect is currently priced into the markets. With the next Fed meeting a month away and earnings season almost over, this political drama is taking the center stage in American markets.

Crypto BattleGround

Over the past 24 hours, the value of all cryptocurrencies in circulation has risen by an outstanding $5 Billion and the entire market is now worth $220 Billion. Bitcoin itself has added $8.2 Billion to its market cap and now trading at $7,375 on eToro.

After the unification brought on by the cancellation of the Segwit2x hard fork and the quick rejection of the notion to replace BTC with BCH, the first and most popular digital currency is now asserting its dominance over the market.

However, the next $300 could prove very difficult ground to reclaim. There are generally less buyers when the market is near the top and it would require a breakout of the all time highs in order to generate new interest from new buyers.

The sugar rush on the 2x cancelation caused the price to spike as high as $7,872 (orange circle) so everything between the previous high (blue) and the all time high should be considered battleground territory.

Please let me know if you have any questions or comments. A lot of the info that I have comes directly from you, the readers. So please keep tagging me and sending in your thoughts.

This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.
The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.

Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.

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.



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Analysis

Long-Term Cryptocurrency Analysis: All Majors Stretched as Ripple Finally Breaks-Out

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Although the previous leaders of the rally started to correct or at least consolidate in the wake of the overbought long-term setups, another batch of coins turned exponential, with Litecoin, Ripple, and Ethereum all registering lofty gains this week. Bitcoin, Monero, and Dash have been holding up well, and even drifted to new marginal highs during the period, while Ethereum Classic had a more volatile week, before moving to new highs today.

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XRP left the broad trading range that has dominated its market since May, and surged to new all-time highs while almost quadrupling in the process. As the coin was the only major on a long-term buy signal according to our trend model, and the move triggered a sell signal on Thursday, now all of our tracked coins are on sell signals.

Ripple could be in for further short-term gains but long-term investors should reduce their positions after this week’s spike. Support levels are found Major at the prior high near $0.4250 and in the $0.30-$0.32 range.

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XRP/USDT, Daily Chart Analysis

IOTA, which has been leading the market higher before is down by more than 30% off its all-time high, but given the exponential move before, an even deeper correction is likely in the coming weeks, and investors should wait until a more favorable setup to add to their positions. 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 majors look this weekend.

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Analysis

Technical Analysis: Bitcoin Up Again as Altcoins Mixed in Volatile Trading

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Bitcoin is at a new all-time high today, although the momentum of today’s move is far below from what we saw recently, and the coin only managed to reach a marginal record high yet again. BTC is now worth $300 billion, and it is still trading right at the short-term trendline, inside a rising wedge pattern that shows a clear momentum divergence.

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With the short-term trend still being intact further gains are still possible, but as all the majors are overbought from a long-term perspective, we still advise investors to wait for a better buying opportunity before adding to their holdings. Primary support is still found near $13,000, with further levels at $11,300, $10,000, $9000, and stronger levels at $8200 and $7700.

BTC/USD, 4-Hour Chart Analysis

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 XRP entered a volatile short-term correction after its two-day surge after giving a short-term sell signal yesterday, and the coin spiked back towards $0.60 before settling down just below yesterday’s highs. The long-term setup also turned overbought thanks to the almost 300% rally, and now investors should reduce their holdings, even as further gains are still possible. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

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Analysis

Cryptocurrency Analysis: Ripple Continues Rampage as Litecoin and Ethereum Enter Correction

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Ripple remained in the center of attention in the segment after breaking out to a new all-time high yesterday, and the coin almost doubled in value, climbing above the $0.80 level. The currency concluded a 6-month long consolidation pattern with the move after being the only major on a long-term buy signal in our trend model.

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XRP gave a short-term sell signal today, while turning neutral regarding the long-term setup. Investors now shouldn’t add to their positions, although further gains are still possible, and reducing holdings somewhat is a good idea here. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

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While Bitcoin stagnated, and Bitcoin Cash jumped, Ethereum, Litecoin, Dash, and IOTA has been drifting slightly lower, although the recent gains are still mostly intact, and the basic setup in the segment is unchanged.

Litecoin fell below the $300 level after yesterday’s consolidation, and the coin faced strong selling pressure in the latter half of the session. The currency remains extremely stretched regarding the long-term momentum indicators, and although the short-term uptrend is still intact, a deeper correction is likely in the coming weeks, with key support levels found at $125 and $100, and weaker levels at $260 and $170.

LTC/USD, 4-Hour Chart Analysis

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