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Crypto update – Flight to safety

Cryptocurrencies Capitalization

The forest of cryptocurrencies is made mostly of young shoots growing in the shadow of the father of them all, the Bitcoin. Even if some newer altcoins are backed with a honnest business objective many of them are plastic artifacts planted there as investment scams to lure naive investors into speculative buys. Our analysis only takes into consideration leading cryptocurrencies from a market capitalization standpoint to ignore all the rest subject to much speculation. By the date of posting (12 Oct 2017) only 11 cryptocurrencies have a market cap larger than one billion US Dollar:

2017-10-12_CryptoCap

Cryptocurrencies with market capitalization larger than one billion US Dollar

Bitcoin – BTC

The Bitcoin is the mighty oak, the King of the forest, and it continues growing higher and stronger. It has rapidly recovered from the first half of September global crypto-collapse. With investors flying to safety the weekly trend is still pointing upwards with positively oriented indicators. By the time the chart was captured some six hours before posting the move anticipated has already taken place:

2017-10-12-kraken-btcusd

Bitcoin expected to break out to make new price records

Sorry for that as our intention was to highlight this breakout as a speculative buy, but it could still be an actionable trade in case the Bitcoin price moves back towards the breakout level above the previous price record in the $5000 area:

2017.10.12-2-btcusd

Actionable buy of BTCUSD

Bitcoin Cash – BTH

Bitcoin Cash is the graft villain that intended to challenge the King for its throne but since there is no room for a second ruler its fate is possibly its demise into oblivion. The daily price of BCH mirrors the BTC price to the downside as illustrated by the daily price chart showing the relentless BCH price collapse from the hard fork on 1st August 2017. From the present technical and fundamental standpoints the odds are favoring a continuation of the downwards price spiral and only a break above the descending resistance line could revive some hopes for BCH to revert the trend:

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Relentless Bitcoin Cash downtrend could lead into complete abandon

Ethereum – ETH

Ethereum is the second largest cap and closest pretender to the throne. With a neutral 3-day trend but positively oriented technical indicators it appears to be prepared to move back up in direction of the previous price records in the $400 area. The ETH price first needs to clear out the $315 resistance area, which is proposed as an actionable opportunity to buy, as depicted on the three-day price chart:

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Ethereum Classic needs to break above $315

Ripple – XPR

Ripple has recently come back to life and we have highlighted the breakout that took place on the daily price chart when the XPR price was $0.22398. It is now working its way higher and we speculate on a breakout from the large pennant (or contracting triangle) pattern as shown on the three-day price chart, and which should initiate a robust uptrend. It is therefore recommended to buy the break above the recent price peak at $0.2799 (green arrow) from an investment perspective whereas any price setback in the daily price breakout area (red line) could be bought from a speculative standpoint:

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Speculative Ripple price breakout scenario

Dash – DASH

Dash is still in an uptrend on the three-day price chart. On the short term we could expect to it moving back up into the vicinity of the descending resistance line but the technical indicators are negatively oriented. A prolonged period of price fluctuations is therefore expected towards the apex of the triangle pattern and another test of the lower triangle boundary can not be excluded. The better approach in this case is to wait for a resolution of the technical configuration and another test of the upper triangle boundary before intervening:

2017-10-12-kraken-dashusd

Dash trending higher but undecided

Monero – XMR

Monero price has come very near to a support area and it is still trending higher on a three-day price chart. We could expect to see Monero resuming its uptrend towards the upper boundary of an intermediate triangle pattern. As in the case of Dash it is better to wait until the technical picture has become clearer before intervening:

2017-10-12-kraken-xmrusd

Monero undecided, wait for more clarity

Litecoin

As has been mentioned before Litecoin has been ‘the weakest on the strongest’ lately and it still is. The 3-day price chart indicates the immediate proximity of a descending resistance line. Only a decisive break above the previous candle price top at $53.33 would invalidate the bear scenario and by the time of posting LTC price is working its way higher into this area. Speculative buyers could buy any price setbacks while investors could buy the break above $53.5.

 

5 Comments

  1. You wrote Ethereum Classic when clearly you mean Ethereum. Ethereum Classic trades at like $12.
    Reply
    1. You are right my friend, I wrote this article under time pressure and wrongly wrote Ethereum Classic instead of Ethereum. In the paragraph title ETH was correctly mentioned but in the text I wrote ETC also. Gross errors, I agree. I have edited these. But THE GRAPH WAS CORRECT ANYWAYS and has not been changed it and I wrote “The ETH price first needs to clear out the $315 resistance area, which is proposed as an actionable opportunity to buy, as depicted on the three-day price chart”. Where do we stand now?

      Reply
  2. $LTC (Litecoin in USD) broke above $53.5 as suggested. Now we believe more can be added to the position if a break above $61.3 happens as posted yesterday 12 Oct 2017 on twitter.

    Reply
  3. en route to test for third time descending resistance line. $330 is a now the critical level to break above on 3-day price chart for a bull run towards previous price record.

    Reply
    1. $DASH in USD: the Power of trend lines. The question is not IF but WHEN.

      Reply

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