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Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano: Price Analysis, Jan. 04

The views and opinions expressed here are solely those of authors/contributors and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

While China banned initial coin offering (ICO) back in September 2017, it has not prevented the Chinese social network Renren from seeking an ICO. The company’s stock, which is listed on the New York Stock Exchange climbed 47.39 percent to $18.32 a share following the news.

Similarly, Israeli trading company Plus500 saw its stock price spike 20 percent as it reported that cryptocurrency trading had boosted its profits.

This shows that the markets are excited about the companies getting involved with the Blockchain technology or cryptocurrencies.

But not regulators, apparently. The Israel Securities Authority, for example, is not in favor of stocks, whose main business is linked to cryptocurrencies. The regulator plans to prohibit the listing of shares of such companies. Will other stock markets regulators also follow? Difficult to say.

As the cryptocurrencies market cap has crossed over the $760 bln point with altcoins outperforming Bitcoin, let’s see if can identify any buy or sell patterns today.

BTC/USD

Though Bitcoin broke out of the downtrend line, it did not reach our expected target objective of $16,000. Failure of the bulls to capitalize on the breakout of the downtrend line is a bearish sign.

b

We find a symmetrical triangle developing, which is a continuation pattern. The cryptocurrency is currently retesting the breakout levels of the triangle. If it holds the $14,000 levels and reverses direction, we suggest long positions above $15,500.

If the BTC/USD pair falls below $14,000, it is likely to fall to the neckline and below that to the trendline of the triangle. A breakdown of $12,000 levels will be negative, which can extend the fall to $8,000 levels.

Therefore, traders should keep a stop loss around $13,500 once their long positions are triggered. Also, avoid buying below the specified levels.

ETH/USD

We expected a move to $973, once Ethereum sustained above $863 and it has reached our target objective today.  

e

The resistance line of the channel is likely to act as strong resistance. Based on the previous experience, we find that once the cryptocurrencies are in a momentum, they overshoot their target objectives.

Therefore, traders can book partial profits at the resistance line and hold the rest with a close stop-loss because if the ETH/USD pair breaks out of the ascending channel, it can rally to $1,200 levels.

However, the markets can turn down in a jiffy, so make sure to trail the stops higher instead of being fixated on the targets.

BCH/USD

Though Bitcoin Cash broke out of $2,475, it could not reach $2,900 levels, as we had expected. It turned back from $2,770.6933.    

b

The cryptocurrency has again fallen to the critical trendline support, which has provided support on two previous occasions. If this level breaks, there is marginal support at the $2,072.6853 point; below that a fall to $1,733.3558 is likely.

If the trendline support holds, we may see another attempt by the bulls to push the  BCH/USD pair higher. The pair is likely to gain momentum above $2,800 levels.    

XRP/USD

Ripple did not waste any time in consolidation, as we had anticipated. It just broke out to new lifetime highs yesterday and has continued higher.

x

With this rally, the pair has risen from a low of $0.22255 on December 11 to a high of $3.317 today. That is a 1,390 percent rally within a month.

It is difficult to project a target when an asset class is backed by such a strong momentum. However, as a reference, the next target on the XRP/USD pair is $3.414 and above it $3.90469. Nevertheless, even at the risk of missing out on a further rally, we believe that the traders should book about 50% profits at the current levels and hold the rest with a close stop loss.

The cryptocurrency is clearly overbought and is due for a correction or a consolidation shortly.   

IOTA/USD

We have recommended long positions on IOTA in our two previous analyses. We expect the bulls to attempt a rally towards the upper end of the range at $5.59.

i

The bears are defending the overhead resistance of $4.34. Currently, the IOTA/USD pair is taking support at the 20-day EMA.

If this level breaks, it is likely to retest the lows at $3.03 levels. The cryptocurrency pair will gain momentum only above $4.34 levels.

Since IOTA is still inside the range, we recommend holding to the long position with a stop loss of $2.85. We shall reconsider our position in a couple of days.   

LTC/USD

The pullback in Litecoin could not sustain above the $250 levels. The cryptocurrency has again broken below the neckline of the bearish head and shoulders pattern.

l

It has again broken below the 20-day EMA, which has flattened out. Still, we find buying on dips, closer to the $200 levels.

The LTC/USD pair has support at $195.417, below that at $179.7308 from the 50-day SMA, and finally at $175.199, which is the lows formed on December 22.

If the cryptocurrency pair doesn’t break out of $260 within a couple of days, we expect it to resume its slide towards the lower targets.

XEM/USD

NEM has climbed from a low of $0.23595 on December 08 to a high of $2.06278 today, which is a 774 percent rally within a month. It has climbed to the sixth position in terms of market capitalization. Hence, we included it in our analysis.  

n

The XEM/USD pair has risen vertically over the past three days. It has a target objective of $2.13774, which is a critical Fibonacci extension level. We expect some resistance at this overhead resistance. Therefore, traders should keep a close stop-loss on their position.

It does not necessarily mean that the cryptocurrency will crash from $2.13774 levels. It can consolidate for a few days and then again resume its uptrend.

In a correction, we expect support at $1.57849 and $1.42889, which are 38.2 percent and 50 percent Fibonacci retracement levels of the recent leg of the up move from $0.794 to $2.06278.  

ADA/BTC

As we don’t have the charts with enough data available for ADA/USD, we are analyzing the ADA/BTC pair.

We expected Cardano to correct in our previous analysis; however, it extended its rally in the past two days and proved us wrong.

a

From a low of 0.00000338 on Nov. 25 to a high of 0.00009180, today, the ADA/BTC pair has risen 2,615 percent in one and half months. This shows that it is in a strong momentum.

Though momentum can carry it higher, the rally is overextended and is likely to enter into a consolidation or correction soon. Therefore, traders should book partial profits on every rise and should keep a close stop loss on their remaining position.

It is difficult to call a top, but the risk to reward is skewed to the downside.

The market data is provided by TradingView.

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Bitcoin Adoption by Businesses in 2017

2017 was a big year for Bitcoin. CBOE launched the first Bitcoin futures market, the NYSE filed for two Bitcoin ETF’s, and Bitcoin price rose over 1,300 percent. In 2017, Bitcoin became too big to ignore, as Bitcoin became more valuable, there were sizable increases in the amount of brick and mortars that accepted Bitcoin all over the world. Let’s take a look at the data.

Q1/17: Slight growth – 5.5%

According to Coinmap.org, on Jan. 3, 2017,  8,207 brick and mortar businesses accepted Bitcoin as a payment method for their goods and services.  On March 28, 2017, three days before the end of the first quarter, 8,665 businesses accepted Bitcoin. For the first three months of 2017, there was a 5.58 percent increase in Bitcoin accepting businesses.  

BTC Price Data: Calm growth – 7%

On the first day of the year, Jan. 1, 2017, Bitcoin was worth $979.5, roughly 13 times less than what Bitcoin is worth today – $13,390. On March 31, the last day of the first quarter, Bitcoin’s price was $1,045.03. The Bitcoin price rose 6.9 percent within the quarter.  

Q2/17: Steady growth – 5%

On April 4, 2017–8,682 businesses accepted Bitcoin. On June 27, 2017, three days before the end of Q2, 9,143 businesses accepted Bitcoin – all in all, an increase of 461 brick and mortars that accepted Bitcoin, which represents a 5.3 percent increase in the amount of businesses that started accepting BTC in the spring of 2017.

BTC Price Data: Boost – 135%

On April 1, 2017, Bitcoin’s price was $1,069.78; on the last day of the quarter–$2,519.27. Bitcoin’s price increased by $1,449.49; equivalent to a 135 percent increase in price.

First Half of 2017: 11% more businesses accept BTC while BTC price increased by 147%

When combined, the data from Q1 and Q2 represent the first six months of 2017. In the first half of 2017, there was an 11.4 percent increase in the amount of Bitcoin accepting businesses. 936 brick and mortar businesses added Bitcoin as an acceptable payment method for their goods and services.  The average quarterly increase in the amount of brick and mortar businesses that accepted Bitcoin was 5.44 percent.  And from the first day of Q1 to the last day of Q2, the Bitcoin price climbed a total of $1,501.1–a 147.43 percent increase in price.

Bitcoin Accepting

Q3/17: Cryptomania begins – 8.5% growth

On July 4th, 2017, 9,176 businesses accepted Bitcoin; while on Sep. 26, 2017–the number grew to 9,972 entities; an increase of 796 brick and mortar businesses that accepted Bitcoin as a payment method, which is equivalent to an 8.67 percent increase.

BTC Price Data: Another boost – 74%

On July 1, the first day of Q3, the Bitcoin price was $2,458.14, by the end of September it reached $4,286.64. From July 1 to Sep. 30, 2017, Bitcoin price increased by $1,828.5 which is equivalent to a 74.38 percent increase in price.

Boost and buzz, made by Bitcoin

In Q3 we began to see the Bitcoin price and the amount of Bitcoin accepting businesses increase at a larger rate than in previous quarters. A rise in price means that there is a rise in demand, and a rise in demand should be no surprise for the Bitcoin market considering the events that took place in Q3/17. The media began to cover the astronomical returns that investors were receiving from ventures in digital currencies; Bitcoin began to receive worldwide media coverage, and for the first time, Bitcoin was presented in a positive light opposed to its precedented association with money laundering and illegal drug purchases. Additionally, when Bitcoin hit new all-time highs, the news spread like wildfire, this may have influenced a number of people who felt as if they were missing out on massive returns to invest in the Bitcoin themselves so they would not miss out on the generous return on investment.

Q4: Always more BTC for business – 12%

On Oct. 3, 2017, three days into Q4/17, 10,040 brick and mortar Businesses accepted Bitcoin. On Dec. 19, 2017, 11,291 businesses accepted Bitcoin. A 12.4 percent increase in the amount of businesses from the beginning of the quarter.

BTC Price Data: Roller-coaster – 224%

Q4 experienced the largest increase in Bitcoin accepting businesses with an increase of 1,251 brick and mortar establishments accepting Bitcoin for their goods and services. At the beginning of Q4, Bitcoin’s price was $4,317.24. Around Dec. 17, Bitcoin hit an all-time high of $20,000, but in the last days of December, the cryptocurrency market experienced a correction in price–Bitcoin dropped to $14,000. Regardless, Bitcoin’s price rose $9,685.7900 a 224.35 percent increase from the beginning to the end of the quarter.

Second half of 2017: Nearly twice as many new BTC-friendly businesses compared to the first half of 2017

In the second half of 2017, the amount of businesses that accepted Bitcoin as a payment method increased by 2,115 establishments. This is equivalent to a 23 percent increase in Bitcoin accepting businesses from July 4, 2017 to Dec. 19, 2017.

The amount of Bitcoin accepting businesses increased by an average of 10.57 percent per quarter, almost two times the average quarterly increase in Bitcoin accepting businesses from the first half of the year (Q1 and Q2).

Price data: BTC is a record breaking currency

On Jan. 1, 2017–Bitcoin price was $979.53, and by the end of December, Bitcoin’s price was around $14,000; from the first day of Q1 to the last day of Q4 the overall price increase was around 1,329 percent and the priced increased by over $13,000 overall.

Crypto-mania and BTC adoption

It is possible that Bitcoin’s price dropped recently because retail investors who were new to the cryptocurrency market were not aware that cryptocurrencies have a much higher Beta–systematic risk–than the NASDAQ or the NYSE. As Bitcoin’s price dropped significantly, the market began to shake out the weak hands and many retail investors who were new to investing panicked and sold their coins.

Those who hodl’d obviously knew not to be worried, be scared, or feel the need to sell when the price shifted downward by a significant amount, because those who are not new to the crypto-community know Bitcoin’s price moves like the best roller coaster at your favorite theme park. The ups are astronomical and may even make you feel as if you have left earth’s atmosphere, but the downs are terrifying, leading you to believe the coaster is going to plummet straight through the earth and travel into the depths of hell, inducing anxiety, restlessness, and pumping up your adrenaline levels.

The data shows us that Bitcoin’s price is correlated with the number of businesses willing to accept Bitcoin as a payment method at a 0.7994 Pearson Correlation coefficient. This means that when there is an increase in Bitcoin price, it is highly likely there will be an increase in the number of businesses that accept Bitcoin.

The best part is, the Bitcoin fun is just beginning. We could call it “crypto-mania;” however, the fun also could end anytime soon.

Although interest in digital tokens is increasing at a rapid pace, the market capitalization of all digital assets is $560,456,007,471, and is still far below the market cap of the NYSE: $19.6 tln.

2017 was a great year for Bitcoin. Not many assets can boast of having returns of over 1,300 percent, there was an overall increase of 3,084 Bitcoin accepting businesses, and the overall increase in Bitcoin’s price was $13,023.53.

In 2017 we began to see institutional investors incorporate digital asset investing options into their platforms for their clients, but the support from the largest institutional investors has not even become a market factor yet. Institutional investors–the ones on wall street with the big money– are looking to get into the crypto game in the first half of 2018 with a number of Bitcoin ETF’s that they have proposed. Furthermore, the retail investor and the layman are beginning to learn of digital currencies, and are becoming interested in incorporating digital assets into their portfolio.

It will be interesting to see what Blockchain technologies, especially Bitcoin, the first Blockchain technology, have to offer in 2018. But at this point in time, with Bitcoin being talked about daily on our local news channels, in our local supermarket, at our nearest barber shops and inside of classroom settings, it is safe to say we have entered a bull market.

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Bitcoin Finally Cools After Monster Rally

As Bitcoin smashed through the $11,000, $12,000 and so on all the way to $19,000 on some exchanges, people were wondering if, when, and how this monster bull run would all come to an end.

It finally has ended for the digital currency as the price corrected from just under the $19,000 mark to sit at 14,470 at time of publishing. This represents a fall of around 14 percent, which in Bitcoin terms is relatively minor.

Hardly a crash, nor a bubble pop, as some pessimists might suggest, it is presumed that investors may simply be taking stock and cashing out a little after gains of over $5,000 per coin.

Reasons for the rise?

Most of the recent run-up came about because of the news out of CME that they would be operating Bitcoin futures come December. That news helped push Bitcoin past $7,000 in a little price boost.

However, as the Dec. 10 and 18 deadlines for CME and CBOE to launch their futures approach, there has been fresh vigor and frenzy. Essentially, it allows for traditional investors to add a new asset class to their portfolios and helps with the adoption of such a sector.

Price correction

Of course, those who felt the full brunt of the rise will be sad that it is over, having profited incredibly well in little under a week. However, the price correction that this should be viewed as is probably a good thing ahead of the futures launch.

Many have seen Bitcoin rise to dizzying heights and then drop off steeply, citing bubbles and collapses and other such pessimism, however, it is natural for correction to take place – especially in such a speculative market.

Adam Sharp, the co-founder of Early Investing, said back in September when Bitcoin faced another big drop off after a great Bull run:

“It’s just natural and normal for a market to have a correction after a run like that. Historically, Bitcoin corrects anywhere from 30 percent to 50 percent. But the long-term trend is still strongly bullish. We’re up from $0.0033 in 2009 in the very early days to close to $4,000 today.”

Overcoming gravity

With this latest bout of adoption and mainstream acceptance, many are feeling that even with a dramatic price drop, Bitcoin still won’t be heading to zero – a concern that was still a potential not too long ago.

Analysts from FxPro said of this latest correction:

“Bitcoin has proven to all that it’s able to overcome gravity. Its exponential rise in value, however, isn’t simply due to the impending arrival of institutional investors. Cryptocurrencies, and Bitcoin, in particular, have become extremely popular with the general public, and as prices move ever higher, the desire to invest continues to grow.”

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Bitcoin is an Economic Miracle: Cambridge Professor

Dr. Garrick Hileman, an economic historian at the University of Cambridge and the London School of Economics, explained in an interview with CNN that Bitcoin is nothing short of an economic miracle.

Hileman stated:

“Many economists dismissed it as a flawed form of money, something that could never achieve the level of adoption that it has. Today we estimate 5 to 10 million unique active users of cryptocurrencies, and in my opinion that’s nothing short of a minor economic miracle.”

What Bitcoin represents

Bitcoin is the world’s first form of decentralized money; a store of value that is censorship-resistant and that is immutable against manipulation by central entities, authorities and governments.

The decentralized structure and peer-to-peer protocol of Bitcoin are unique in that they allow the Bitcoin network to operate as its own economy, without intermediaries and third party service providers. While some central banks and financial institutions have begun to fear such aspects of Bitcoin, the Bank of Finland encouraged economists to study the “marvelous structure” of Bitcoin.

In a paper entitled “Monopoly without a monopolist: An economic analysis of the Bitcoin payment system,” Bank of Finland researchers wrote:

“Bitcoin is not regulated. It cannot be regulated. There is no need to regulate it because as a system it is committed to the protocol as is and the transaction fees it charges the users are determined by the users independently of the miners’ efforts. Bitcoin’s design as an economic system is revolutionary and therefore would merit an economist’s attention and scrutiny even if it had not been functional. Its apparent functionality and usefulness should further encourage economists to study this marvelous structure.”

Global impact

As mentioned above, Hileman described Bitcoin as an economic miracle, but a “minor” one. However, at this stage in which the market valuation of Bitcoin has surpassed that of major banks at $166 bln and the liquidity of Bitcoin is higher than that of most stock markets, it is difficult to justify any aspect of Bitcoin as “minor.”

Bitcoin has had a major impact on the global financial system over the past eleven months, and it will continue to transform the finance industry at a rapid pace. Already, institutional investors have begun to move into the Bitcoin market. Coinbase CEO Brian Armstrong revealed that approximately $10 bln in institutional money are awaiting to be invested in digital currencies such as Bitcoin.

“Over 100 hedge funds have been created in the past year exclusively to trade digital currency. An even greater number of traditional institutional investors are starting to look at trading digital assets (including family offices, sovereign wealth funds, traditional hedge funds, and more). By some estimates there is $10 bln of institutional money waiting on the sidelines to invest in digital currency today,” wrote Armstrong.

Economic miracle

Naturally, as major hedge funds and large-scale investment banks shift towards Bitcoin, general consumers and casual investors will follow. Then, Bitcoin will no longer be a minor economic miracle but a major one, which will inevitably shape the finance sector in the long-term.

Leading economies like the US, Japan and South Korea have already recognized Bitcoin as a legal currency and store of value, providing regulations to cryptocurrency exchanges, businesses and investors.  

As a currency, Hileman also noted that Bitcoin is increasingly being used in the luxury markets, to process or settle large transactions without the expensive and inefficient services of banks.

“If you’re only paying a $2 transaction fee on a piece of art that’s worth tens of thousands, the fee is basically zero. But if you’re paying two or three percent on a piece of art of that value, then the numbers can go up quite a bit,” added Hileman.

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Price Analysis, October 25: Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin

The views and opinions expressed here are solely those of authors/contributors and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

* BTC/USD, ETH/USD and LTC/USD market data is provided by the HitBTC exchange.

In August 2017 Bitcoin split in two, which resulted in the appearance of Bitcoin Cash, and yesterday the network experienced the second fork, Bitcoin Gold. Whether this is an advantage or disadvantage for Bitcoin is up for debate. Both sides have their own explanations.

However, as traders, we look for historical precedence and attempt to trade using it.

After the first fork, Bitcoin prices took off, rallying from a low of $2,621.75 on Aug. 2 to an intraday high of $4,975 on Sep. 2. That is a blistering 89.75 percent rally in a month.

If history were to repeat itself, Bitcoin should rally to $10,443 by Nov. 24. That figure looks a little doubtful because most traders expect Bitcoin to fall now that the fork has been completed. They expect money to shift to the altcoins. We did see a spark of it in the last two days. However, that rally fizzled out.

Can the rumor of Amazon accepting Bitcoin become a reality and give another boost to the cryptocurrency? We have to wait and watch for it.

However, what do the charts forecast? Is it time to shift from Bitcoin to altcoins or will Bitcoin again attempt to resume its rally? Let’s find out.

BTC/USD

We have not initiated any positions on Bitcoin for the past few days. Is this a good time to get back into the game?  

BTCIn our previous analysis, we had forecast Bitcoin to find support between the $5,350 to $5.500 zone. Today, the digital currency fell to $5,356.95 levels, where buying emerged. As there are two critical supports – from the trendline and the 20-day exponential moving average (EMA) – this can be a good entry point.

However, we want to buy on the way up and not on the way down. Therefore, please initiate long positions at $5,650.

We don’t expect a huge rally from the current levels. We expect a retest of the recent highs. Traders should book partial profits at $6,000 and raise the stops on the remaining positions to break even, if the cryptocurrency rallies according to our expectation.

On the other hand, if Bitcoin turns around and breaks below $5,350 it can extend its fall to $5,000 levels. Therefore, please keep a stop loss of $5,300.

The negative divergence on the RSI is a cause of worry. Therefore, we shall keep the allocation size 50 percent below normal. This is a very risky trade.

ETH/USD

Ethereum must have given some heartburn to our readers. It rallied from $275 to close to $320, and we could not catch it.

ETH

These volatile trades will be difficult to catch. At times, the support levels may break and at other times they may hold. The cryptocurrency had been falling for the past many days; therefore, we did not expect it to pullback so sharply.

Nevertheless, after the quick rally, Ethereum has given up most of its gains and is back below $300 levels.

Currently, the digital currency is likely to face resistance at the 20-day EMA and the 50-day SMA. It becomes bullish only on a breakout and closes above $315. Until then, we don’t see a reliable set up on it.

On the downside, the trendline is a formidable support, which is likely to hold. However, as the price is quoting below both the moving averages, we don’t consider it as a good level to initiate long positions.

That’s why we don’t recommend any trade on Ethereum at the moment.

BCH/USD

Bitcoin Cash is attracting some buyers at the current levels. There have been two attempts in the past three days to push the cryptocurrency higher.

BCHHowever, the 20-day EMA has been acting like a big hurdle on every pullback. If the price manages to break out of the 20-day EMA, it is likely to rally to the 50-day SMA, which is at $414, just above the upper end of the range.

However, the logical stop loss for this trade is below the lower end of the range at $280. This doesn’t give us a 1:1 risk to reward ratio. Therefore, it doesn’t seem to be a good idea to trade.

On the other hand, if the digital currency breaks down of the lower end of the range it can sink to $190.

XRP/USD

After a continuous fall from the $0.3 levels, Ripple is attempting to hold the $0.18 levels. An attempt to pullback faced resistance from both the moving averages.

XAs a result, the cryptocurrency is again back at the $0.2 mark. If Ripple breaks down below yesterday’s low of $0.18211, it will resume its downtrend. The next stop is likely to be $0.165, followed by a retest of $0.15.

On the other hand, any pullback attempt will face selling at the moving averages and the downtrend line. The digital currency will become positive only after it breaks out of $0.238 levels.

Currently, there is no bullish setup. Therefore, we suggest no trade on Ripple.

LTC/USD

Yesterday, Litecoin attempted to break out of the overhead resistance of $58; however, the bears pushed it back into the range.

LTCThe digital currency is again back into the range of $44 to $57.7.

The cryptocurrency will become bullish only on a breakout and close above the upper end of the range. We recommend a buy on Litecoin on a close above $57.7. Our target objective is $71. The stop loss for the trade can be kept at $51.

On the contrary, if the bears continue to pound the digital currency, it can fall to the lower end of the range at $44. Therefore, we recommend a buy only after the bulls are able to push Litecoin out of this range.

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Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin: Price Analysis, October 21

The views and opinions expressed here are solely those of authors/contributors and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

* BTC/USD, ETH/USD and LTC/USD market data is provided by the HitBTC exchange.

 

Only a few months back, the market capitalization of the whole cryptocurrency universe crossed the $100 bln mark. Now Bitcoin alone has crossed the $100 bln mark.

In doing so, it has increased its dominance to 58.5 percent, a level last seen in May this year. This shows that money is pouring into Bitcoin, whereas altcoins are getting hammered.

At some point in the near future, once the leader tires out, other popular coins are likely to offer an excellent buying opportunity.

Is Bitcoin nearing a top? Are altcoins ready to follow the leader? Let’s find out.

BTC/USD

Bitcoin is on fire. It has been consistently rising for the past two days. Can this rally continue? We don’t have any existing positions in Bitcoin, should we establish one at the current levels?

BTC

Bitcoin has reached a critical resistance level from the channel line. It has not been able to breakout of this channel since June of this year. A breakout of the ascending channel gives it a target of $8000, equal to the depth of the channel. However, this level is unlikely to be reached in the short-term. Therefore, we have to work with intermediate targets.

The breakout from the range of $5391.4 to $5875 gives the cryptocurrency a minimum target objective of $6359. If this level is crossed, then the next possible level is $6845.

Our higher targets will be invalidated if the virtual currency turns down from the current levels.

As the risk to reward ratio is not attractive, we don’t recommend any fresh trade. However, investors carrying positions from lower levels should keep a stop loss of $5600.

Once Bitcoin breaks out and sustains above the channel, the stops can be raised to about $5800 levels and then trailed higher.

On the downside, $5875, the earlier resistance, will act as a strong support.

ETH/USD

Ethereum has been falling for the past six days. However, we expect it to hold the $275 to $286 zone, which has served as a strong support for the past month and a half.

ETH

We don’t recommend buying on the way down. We should wait for the next day or two to confirm that the support zone is holding, because a break of this support can sink Ethereum to $252 levels.

If, however, the support holds, the digital currency is likely to trade in a range for a few days, then attempt to start a new uptrend.

Presently, we don’t find any buy setup, therefore we don’t suggest any trade on Ethereum at the moment.

BCH/USD

While Bitcoin is roaring ahead to new highs, Bitcoin Cash has not found any buying support from the bulls. However, selling has subsided, which has resulted in small range days.

BCH

Presently, the digital currency is attempting to hold the $282 to $300 support zone. If Bitcoin Cash breaks this level, it will sink towards lows of $190.

On the other hand, a breakout of $400 will signal a change in trend. Therefore, we recommend a long position only at $410, with a stop loss of $350. The target objective is $530.  

XRP/USD

We don’t hold any positions in Ripple. The digital currency is currently attempting to hold the $0.20 levels. However, buying interest has declined following the sharp reversal from $0.3 levels.

XRP

If Ripple breaks below $0.2, it’s likely to fall towards $0.15 levels, where we recommend to initiate long positions because it has not broken down of $0.145 on a closing basis since June this year. However, this trade should be taken on the way up, after Ripple confirms a bottom. Please don’t try to catch a falling knife and enter when the cryptocurrency is falling. The stop loss can be kept $0.126.

On the other hand, if the virtual currency holds the $0.2 levels, it will again attempt to rally towards $0.3. But, we don’t find a reliable set up to trade this. Hence we don’t recommend a long position until Ripple falls to $0.15 levels and holds it.

LTC/USD

On Oct. 18, though Litecoin fell to $53 levels, it quickly climbed back higher and closed above $57.7. It has since then managed to stay above this support level. However, presently the cryptocurrency is threatening to fall into the range once again.

LTC

If Litecoin breaks below $57 and is unable to climb back quickly, it will invalidate the current bullish setup.

However, if the cryptocurrency finds support at the current levels and turns up, a long position can be initiated at $63. The stop loss for the trade can be kept at $55 and the profit objective is $71.

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Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin: Price Analysis, October 11

The beauty of trading is that when prices are correcting, there’s news of doom all around. All the bears come out of hibernation, forecasting a crash, and the bulls hide in a corner.

The exact opposite happens when price reaches lifetime highs. This creates fear in the minds of the traders who miss buying at the lows and selling at the highs. Therefore, we focus on the price action to forecast the next possible move. Now that Bitcoin is close to its highs, what should we do?

BTC/USD

Traders who went long at lower levels on our recommendations have been booking profits near resistances. We are left with about 30 – 35 percent of our original position, which we had planned to book at $5000. Should we book out close to the highs, or wait for higher levels?

BTC

Yesterday, the cryptocurrency reached a high of $4932.9, very close to our target levels. However, selling at the highs has pushed Bitcoin back below the $4800 levels. As the digital currency is trading above $4680, chances are that it will again attempt to breakout to new highs soon.

If the bulls are successful in sustaining above $5000, the cryptocurrency is likely to gain momentum, and it will indicate the start of a new uptrend. Therefore, we recommend holding the existing position with a stop loss of $4500.

We don’t want to keep a deeper stop loss because, usually, when bulls fail to breakout of a strong overhead resistance, bears sell aggressively, sending prices lower. So, if the bulls fail to breakout and sustain above $5000, we can expect the bears to push the cryptocurrency down to at least $4184.6 levels, which is the 38.2 percent Fibonacci retracement level of the pullback from $2974 to $4932.9.

ETH/USD

Traders who went long at $317 with a stop loss of $278 on our recommendation had to face a loss. In hindsight, it looks like we purchased at the highs of the range and sold off at the lows of the range.

ETH

However, we had intended to buy on a breakout of the range. As the range had been building for a few days, we believed that it would have enough force to carry it higher. Therefore, we didn’t recommend waiting for a close above the range to initiate long positions.

Similarly, on the downside, we’d expected that once the cryptocurrency broke out, it wouldn’t return to the lows of the range. Nevertheless, Ethereum proved us wrong on both fronts.

So, how can we trade Ethereum now?

Currently, the cryptocurrency is trading close to the center of the range. We don’t want to enter a long trade unless Ethereum breaks out and closes above $317. We may miss out on a few points, but at least we won’t be caught in these fake breakouts and breakdowns.

We shall keep an initial stop loss of $278 only, because, we don’t expect prices to fall back below the range, once it breaks out and closes above it.

BCH/USD

We have been correct in avoiding Bitcoin Cash on the long side. On Oct. 9, the cryptocurrency broke below the critical support of $300, forming a low of $280.1. So, is this low level a good time to buy?

BCH

Bitcoin Cash is devoid of buyers. Though the digital currency has recovered above $300 levels, it continues to make lower lows and lower highs, which suggests that a bottom is still not in place.

Until the digital currency remains below $385 and the 20-day exponential moving average (EMA), it will continue to face selling pressure on rallies. On the lower end, Bitcoin Cash can fall to $285 and thereafter to $200 levels.

On the upside, any rally towards $385 levels is likely to face stiff resistance. We don’t find any buy setup on the cryptocurrency; therefore, we don’t have any recommendation on it.

XRP/USD

The sharp fall on Oct. 9 hit our stop loss at $0.23500 on the 35 percent of our remaining position. This is the reason we always recommend booking partial profits as the price moves higher, especially when the cryptocurrency is not in a strong uptrend. Presently, we don’t have any positions in Ripple.

XRP

It has recovered after falling below the downtrend line on Oct. 9. However, bulls will face stiff resistance at $0.28000 and $0.30000.

On the downside, the cryptocurrency has support at $0.23000. Considering the levels, we don’t find a trade set up with a good risk to reward ratio. Therefore, we shall wait and watch until we get a good entry point.

LTC/USD

There is nothing much happening in Litecoin. The cryptocurrency is stuck inside the range, due to which traders seem to have abandoned it at the moment.

LTC

Litecoin has a history of forming ranges and then breaking out of them. We’re currently in a similar situation. Whenever the price breaks out of the upper end of the range at $58, chances are that it will again take off.

Until then, the cryptocurrency is likely to trade between $44 and $58. We shall not take a trade inside this range.

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Cryptocurrency Hedge Fund Cofounder Matthew Goetz Compares Bitcoin to the Internet in the 1990s

Digital currency hedge fund BlockTower Capital cofounder Matthew Goetz claimed that Bitcoin and other cryptocurrencies are like the Internet in the 1990s. He said that bets during the early days of the Internet were risky just like the investments in the digital currency market as of October 2017.

According to Goetz, the claims that the virtual currencies are one of the disruptive technologies of today are correct. He also compared the cryptocurrencies to the Internet in the 1990s.

“You could be right on the thesis that cryptocurrencies are transformative and you could make what you think is the right bet at the time, but remember one time you had Yahoo and then this thing called Google came along.”

Goetz’s other comments and predictions

The digital currency market worldwide has registered a meteoric rise in 2017, with more than 1,000 cryptocurrencies already in circulation. Bitcoin, the leading virtual currency, posted a significant price increase as it rose by over 450 percent to almost $4,400 per token.

Goetz, however, argued that Bitcoin will not remain as the top-dog digital currency forever despite its phenomenal rise. He added that Bitcoin and the other virtual currencies can be toppled by a cryptocurrency with superior technology.

“Bitcoin is the most entrenched, it has very stable protocol, it doesn’t change a lot, and it has a very strong developer base, but at the end of the day, it is still software. There is some chance that something an order of magnitude better than Bitcoin, technologically, could come along.”

Goetz, however, claimed that in order for a rival cryptocurrency to replace Bitcoin, it should have significantly better capabilities than the crypto top dog. He cited as an example how Facebook has toppled MySpace as the favored social media site.

“It’s something like Facebook. If someone creates a new Facebook that has slightly better features, say 10 percent better. That’s great, but network effects are strong. So, that new thing isn’t going to kill Facebook.”

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Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin: Price Analysis, October 04

The views and opinions expressed here are solely those of authors/contributors and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

* BTC/USD, ETH/USD and LTC/USD market data is provided by the HitBTC exchange.

Goldman Sachs CEO Lloyd Blankfein indirectly hinted that cryptocurrencies are on their way to replacing paper money. This is in stark contrast to JPMorgan CEO Jamie Dimon, who has still not acknowledged the rise and acceptance of cryptocurrencies across the globe. Nevertheless, it is interesting to note that at least a few major investment banks are pondering over allowing investors direct trading opportunities in cryptocurrencies.

Experts are bullish on Bitcoin, expecting it to reach $6,000 by the end of this year. That is a good 42 percent above the current price of $4,200. Let’s see, whether this is a good time to enter cryptocurrencies or are they due to fall further.

BTC/USD

We had recommended taking 30 percent profits on our Bitcoin positions at $4,418. That made our existing investment in Bitcoin risk-free. So, should traders re-enter at the current levels or will Bitcoin fall further?

PriceThere is a confluence of support between $4,114 to $4,170, from the 20-day exponential moving average, the 50-day simple moving average, the horizontal line, and the trendline. Therefore, we expect this support to hold, at least in the short-term.

The subsequent rise from here will decide whether Bitcoin will resume its uptrend and rally above $4,500 or will it turn down and sink below $4,000.

Aggressive traders, who trade for the short-term, can buy at the current levels of around $4,218 and keep a stop loss of $4,000. The target objective is $4488. However, this is a risky trade, therefore, please keep the allocation size 25 percent of normal.

For swing traders, please maintain the stop loss at $4,000 and don’t add any fresh positions. If Bitcoin breaks down and closes well below the trendline, it is likely to fall to $3,900 and $3,731 levels, which are 38.2 percent and 50 percent Fibonacci retracement levels of the pullback from $2,974 to $4,488.01.

ETH/USD

Ethereum could not breakout of the bullish ascending triangle pattern and price has moved out of the trendline, invalidating the setup.

PriceThe cryptocurrency is consolidating between the $278.88 and $316.61 levels for the past few days. Both the moving averages have also flattened out, signaling a range bound action. Ethereum doesn’t have a history of forming large ranges. Therefore, we expect a breakout or breakdown of this range soon.

We recommend waiting for a breakout above $317 to enter long positions. Though there is a resistance at $344, we expect the digital currency to breakout of it and rally to $354. The stop loss for this trade should be kept at $278.

However, if Ethereum breaks down of $280, it is likely to extend its fall to $257.94, which is the 50 percent Fibonacci retracement level of the pullback from $200.15 to $315.72.

BCH/USD

We have been cautious on Bitcoin Cash for the past few days and the price action has validated our stance. Should you buy this fall?

PriceIn our previous analysis, we did not recommend any trade on bitcoin cash because we were not confident that the range will hold. Today, the digital currency has broken down of the range, which gives it a lower target of $221, unless Bitcoin Cash quickly reverses direction and ends the day above $385.

Though we expect some buying to emerge at $300 levels, we are not recommending any trades on Bitcoin Cash. We shall wait for a bottom formation before buying it.

XRP/USD

We have carried a long position in Ripple from the past week. Ripple is sustaining above both the moving averages and the trendline support, which is a positive sign. 

PriceThe digital currency will gain momentum once it breaks out of $0.22000 levels. Our target level remains at $0.25000. Traders should maintain the stop loss at $0.185000.

The cryptocurrency will become negative if it breaks down and closes below the uptrend line. Until then, we remain bullish on Ripple.

LTC/USD

We have been waiting for a breakout of the range in Litecoin, which has not happened. So, should you buy at the lower end of the range?

PriceLitecoin is trading within a well-defined range of $44.160 on the lower end and $57.729 on the upper end. As the cryptocurrency was unable to breakout of the range, it is likely to fall to the lower end of the range, if it breaks down of $50.

We expect the range to hold; therefore, we recommend a long position in Litecoin around $46 levels when price turns up after touching the lower end of the range at $44. Please don’t buy when the digital currency is falling. We can keep a stop loss of $40 and our target objective will be a rally to $57.

On the other hand, if Litecoin holds the $50 levels and rallies above $58 levels, we expect it to start a new uptrend. Therefore, we recommend long positions at $58 with a stop loss of $49. Our target objective is $71.

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Why is Bitcoin Price Slow to Pick Back up to $5,000?

Bitcoin price continues to increase in the stock market and remains on course to reach the $4,500 level after falling below $3,000 due to the regulatory campaign by China against cryptocurrencies. As of press time, Bitcoin is trading at $4,291, a 3.91 percent decrease on the day.

Based on a price action analysis, the possibility of the Bitcoin to regain its record highs has improved after the bullish price action over the weekend.

BTC

It has posted an 11.3 percent week-on-week increase, but still down by 4.9 percent on a monthly basis. Trend indicators, however, showed a lack of vigor in the market, which will surely test the patience of investors. Another slight cause of concern is the sustained weak volumes in the market.

China and South Korea’s moves against virtual currencies

The recent sharp decline in Bitcoin price was due to the move by the Chinese government to prohibit the conduct of initial coin offerings (ICO) in China. The government argued that nascent fundraising mechanisms like ICOs are illegal under the country’s domestic laws.

In South Korea, the country’s financial regulator Financial Services Commission (FSC) has ordered the prohibition of all forms of ICOs “regardless of technical terminology,” as well as the margin trading of digital currencies. The FSC is also scheduled to implement other measures that are expected to adversely affect the operations of cryptocurrency companies, including on-site inspections, starting the end of September and the examination of digital currency accounts for user data beginning December.

Will it ever bounce back?

The upward movement of Bitcoin price coupled with a bullish relative strength index (RSI) and the directional movement index (DMI) show that the leading cryptocurrency can regain its Sept. 6 high of $4,692 and possibly, hit back towards its record high of $5,000. It remains to be seen, however, if this will be the case in the coming weeks.