Ethereum Classic (ETC) Risks Further Sell Off After Rejection At 10 Day EMA

Ethereum Classic risks further downside despite being down significantly from its all time high. Contrary to popular sentiment, ETC/USD declined below $5 and continued its fall all the way towards $3. The number of people who believe the price can fall a lot further is now at an all time high shown by the rising number of ETCUSDShorts. This belief is strengthened by the recent shutdown of ETC Dev, a major development company that helped bring Ethereum Classic (ETC) to the limelight after the Ethereum (ETH) hard fork. When ETC Dev announced its shutdown, a vast majority of cryptocurrency investors and analysts were quick to react by declaring that Ethereum Classic (ETC) is officially dead. 
It is possible that the ETC Dev shutdown helped bring about the decline to $3 considering Ethereum Classic (ETC) had previously done a good job defending against a fall below $4. That being said, as we have seen in the past, such fundamental catalysts often finish the job delivering what the charts already show us. ETC/USD was poised for another fall which the ETC Dev shutdown delivered. Ethereum Classic (ETC) is currently trading close to $4 again but considering that Bitcoin (BTC) is expected to fall further, it would not be surprising to see Ethereum Classic (ETC) forming a new yearly low. The price is likely to retrace as shown by the ETC/USD chart.

Chart for ETC/BTC (1W)
Ethereum Classic (ETC) is expected to continue trading to the top of the descending channel but that is unlikely to happen before a retest of the yearly low. If Bitcoin (BTC) falls to $3,000 then we may expect the price to fall below $3. That being said, the price is now at the bottom of the channel and there is very little room for further downside. Ethereum Classic (ETC) is extremely unlikely to break below this descending channel which means it only reasonable to expect the price to correct to the upside in the weeks ahead. The near term correction is likely to propel Ethereum Classic (ETC) towards $9. However, the chances of another correction in early 2019 continue to loom over.

The current state of the altcoin market points to a mini alt season in mid 2019. This is going to see cryptocurrencies like Ethereum Classic (ETC) rise by at least 500% from current levels. While the risks of further downside remain short term, it is pertinent to note that smart money is busy accumulating at these levels for the long term. Ethereum Classic (ETC) at current prices points to two possible scenarios: either it is about to die or it is about to come to life. Considering that ETC Labs is funding startups left and right to build on the Ethereum Classic (ETC) blockchain, chances are they are just getting started.
Source: Crypto Daily

Litecoin (LTC) Determined To Retest $50 But Not Before Further Downside

Litecoin (LTC) is due for a correction to the upside after a strong fall that followed a break of market structure. As the LTC/USD daily chart shows, Litecoin (LTC) failed to recover despite several attempts. The momentum to the downside was strong and the bears remain in charge as of now. The price attempted to break above the 10 Day EMA but failed. The RSI for LTC/USD has now run into a strong resistance and has room to continue its decline. Litecoin (LTC) will rise again to retest previous market structure at $50 but not before falling further in the days ahead. That being said, further downside at this stage is going to be limited and recovery will be swift. Any short positions with high leverage are thus highly inadvisable at this stage.
There have been opportunities for Litecoin (LTC) to stage a reversal in the past few days. However, that kind of reversal would have been far too easy and straightforward. This is not how reversals take place. At every point of reversal in a market, there has to be a fight between the bulls and bears marked by confusion as to its outcome. During that fight, investors get mixed signals which can be very misleading at times. A lot of times traders see the price getting pulled back after attempting to break out and they take it as a sign of weakness. Selling into that weakness without waiting it out is more often a mistake that most traders make. Some take that as a sign of further downside and go short on margin only to blow up their accounts.

Long candle wicks that we see on the charts just before a trend reversal are only to be taken as a sign of fighting between bulls and bears. It is not to be taken as a sign of weakness or strength because the fight is not over until only one of the two is left standing. That may sometimes mean losing out on ideal entry points but it is well worth it. There is no lack of opportunities in this market. Do not trade as if this is the last opportunity you are going to get. Litecoin (LTC) was here before and it will be here in the future. Litecoin (LTC) has now completed an extensive correction that puts it close to its bottom. The right approach at this point would be to think about maximizing the quantity of Litecoin (LTC) you can buy, not sell.

If we look at the LTC/BTC 1D chart, we can see that Litecoin (LTC) has clearly broken market structure against Bitcoin (BTC). When this happens, the previous support turns into a strong resistance. In other words, Litecoin (LTC) may not be able to break this resistance against Bitcoin (BTC) anytime soon. Now, some might consider it a setback worrying about the losses they have incurred buying at higher prices in the market while others would consider this an opportunity to accumulate for the long term.
Source: Crypto Daily

Ethereum (ETH) Bears Lose Impetus As Bulls Step In To Push For Reversal

Ethereum (ETH) bears are losing momentum as the bulls step in to push for a reversal. This week, the number of shorts reached an all time high. The last time this happened, we saw ETHUSDShorts enter a downtrend. Similarly, when it reached an all time low around August last year, we saw it enter an uptrend and the price of Ethereum (ETH) started to fall soon afterwards from its all time high. Markets stage reversals at points when one of the two sides gets too comfortable. The yearlong bear market has made the bears quite confident. In fact, over the past few weeks, we have seen unprecedented risk taking on the sell side which is a testament to the fact that the bears have become too confident and complacent.
The chart for ETHUSDShorts also shows that the RSI has run into a historical resistance and has already taken a turn for the downside. It would not be surprising to see the number of shorts drop drastically from current levels. That being said, it is too early to say that this is the end of the bear market. We have been long overdue for a correction to the upside and we are going to get it. However, this does not mean that the price may not drop again to reach a new around early 2019. The probability of a reversal from current levels is very high and the price of Ethereum (ETH) is expected to rise aggressively in the weeks to come. A strong reversal from current levels will most likely be fueled by a short squeeze which will see the bearish resolve get crushed short term.

Ethereum (ETH) is forming what appears to be an inverse head and shoulders on the 4H chart for ETH/USD. This pattern is the only shot Ethereum (ETH) has to stage a comeback. If this fails to come to fruition, we may see the price drop further without even correcting to the upside first. The RSI on the 4H timeframe is not in an ideal position for an aggressive rise towards $125. However, we believe that this rise will take its time and is expected to complete after mid December. After this rise, we will see the price fall again to complete the right shoulder of the IH&S formation. Completion of the right shoulder and thus the entire IH&S is what will propel Ethereum (ETH) towards a retest of its previous market structure that is now broken.
This is a move that we have seen in the past. Both Bitcoin (BTC) and Ethereum (ETH) are expected to rise towards their previous market structures for a retest. They will most likely be rejected and the price will fall again. It is pertinent to note here that breaking of market structure is of significant consequence in chart analysis. Now that Ethereum (ETH) has broken its market structure, it is unlikely to break above it anytime soon because that structure will now act as a resistance. That being said, ETH/USD is due for a recovery which we will see in the weeks to come.
Source: Crypto Daily

Bitcoin (BTC)’s Swift Recovery Towards $6,000 And The Inevitable Short Squeeze

Bitcoin (BTC) is due for a swift recovery towards $6,000 as long as it closes the current weekly candle above trend line support. RSI for BTC/USD points to a similar outcome on the weekly chart. Bitcoin (BTC) recently broke market structure which led to a crippling correction the likes of which we have not seen in the past. This correction or crash has now become a part of Bitcoin (BTC)’s outlook for years to come. The moment it broke below the $5,800 level, Bitcoin (BTC) completely shattered any hopes of a bullish comeback towards the end of the year. Some analysts like Tom Lee are still confident that Bitcoin (BTC) may rise to $15,000 by year end, but that is extremely unlikely under current circumstances. That being said, BTC/USD is long overdue for a short term recovery.
The price is expected to rally from current levels. Soon as Bitcoin (BTC) closes the current candle above $3,210, we are likely to see a green candle that is going to take the price above $4,000. The next one or two candles that follow will be expected to see Bitcoin (BTC) retesting previous market support at $6,000 which has now become a critical resistance. Too many people are expecting a pullback to $3,000 which is exactly why it is not going to happen. The price is likely to stage a reversal next week from current levels but that is not going to happen without some good old stop hunting that is going to teach complacent bears some important lessons. This short squeeze that we have been mentioning in our previous analyses is also long overdue just like a reversal at this point.

The bear market is about to come to its end, but the bears are still too confident about a strong pullback. Some are calling for a pullback to $2,800 whereas others are expecting a fall below $1,000. Most of these calls are based on sentiment instead of facts or evidence. This kind of attitude never helps especially at turning points in a market. As we can see on the weekly chart for BTCUSDShorts, the number of shorts has just reached an all time high this week. In other words, Bitcoin (BTC) has not seen such a large number of bears in its entire history. Now, the complacent trader who has been far too comfortable seeing the price continuously drop is going to take this as a sign of strength for the bears whereas the cautious trader is going to take this as a contrarian signal for a reversal.
If we go back to December last year, we can see that the number of shorts declined just before a massive rally as one should expect. However, if you look at the candles near the bottom, they have some really long wicks which signify both confusion and manipulation. The first green candle is 2018 conveys a very important message. If you look at the candle, it is the longest candle in the history of BTCUSDShorts. However, it is also the candle that made a new all time low for BTCUSDShorts. This goes on to show how the whales throw retail traders false signals before a reversal. If we apply that knowledge to the current candle that has formed an all time high for BTCUSDShorts, then it would be very reasonable to expect that the current candle is going to do the exact opposite, hunting some bears in the near future.
Source: Crypto Daily

Ethereum Classic (ETC) Technicals Point To Massive Growth In Upcoming Months

Ethereum Classic (ETC) just fell to a new yearly low in the wake of another market crash. ETC/USD has broken several supports and market structures over the past few weeks. This has happened so often that it almost makes no sense to be looking at the ETC/USD chart right now. Whenever Bitcoin (BTC) takes a fall, most cryptocurrencies have to fall even if it means breaking below a strong support. A support is only strong as long as Bitcoin (BTC) allows it to be. Let’s face it, most people in this market do not believe in other coins. If Bitcoin (BTC) is going down, they are going to sell their altcoins first and Bitcoin (BTC) second.
Now, we may not be able to tell whether the price is going to break or hold a certain support but the buying and selling patterns over the past provide us with even more useful insights to base investment decisions around. If we look at the above weekly chart for ETCUSDLongs, we can see a large bull flag that would result in a strong breakout anytime now. With that breakout, we will be able to see the price of Ethereum Classic (ETC) rise due to a growing number of long positions. This bull flag started to form around April this year when the number of longs started to increase. It is pertinent to note that the chart for ETCUSDLongs looks a lot different than BTCUSDLongs. This is because Ethereum Classic (ETC) has been much undervalued even before the bear market.

On one hand, we have the bulls beginning to get more confident, whereas on the other hand we have the bears started to lose confidence as the number of shorts starts to fall after reaching an all time high. The RSI for the above weekly chart for ETCUSDShorts shows that the number of shorts has now reached a critical resistance. Breaking above this resistance would mean violating a years’ long pattern which is unlikely. The most likely scenario is that the number of shorts is going to continue to fall gradually until it escapes the rising wedge. After breaking below the falling wedge, the number of shorts is expected to fall aggressively which means the price of Ethereum Classic (ETC) would climb to a new all time high towards mid 2019.

Shorting Ethereum Classic (ETC) has mostly been unprofitable and quite risky as we have seen in the past. For instance, if we look at the above chart for ETC Shorts, we can see that the number of shorts reached its first all time high between September and October. A quick look at ETC/USD would confirm that this would have been a very risky move as this was just before the December 2017 rally. The number of shorts peaked when the price of Ethereum Classic (ETC) peaked. When Ethereum Classic (ETC) started to fall, the number of shorts also started to fall till late April when it should in fact have risen! This goes on to show how often the crowd is wrong about market movements. If you had taken this rising number of sell positions as a sign of weakness, you might have missed out on major gains.
Source: Crypto Daily

Ripple (XRP) Finds Strong Support At Historical Trend Line

Ripple (XRP) has finally found its strongest support in months. The weekly chart for XRP/USD shows Ripple (XRP) bouncing off a historical resistance that extends all the way to Jun 2017. This is not the only trend line support Ripple (XRP) has found. The chart shows that previous resistances during the downtrend have turned into supports. That way, the price has also found another trend line support (shown in yellow) which further strengthen the prospects of a trend reversal. The bear market seems to be finally over for XRP/USD as the price has now corrected to its full potential. Just like the previous bear market, we have seen Ripple (XRP) form a double bottom. Next we will see similar price action to the one between June and November last year.
This would mean that the price of Ripple (XRP) is likely to recover short term but it is unlikely to reach a new all time high before mid 2019. The price is expected to consolidate all the way till mid 2019 after which it is expected to breakout aggressively to reach a new all time high possibly around $5. Ripple (XRP) has recently seen a new wave of investors flock towards it, even during the bear market. While most cryptocurrencies are losing entire business or development teams to the market meltdown, Ripple (XRP) seems to be the only cryptocurrency gaining from the turmoil. Not only has Ripple (XRP) managed to hold its ground better than most coins, it has also taken the opportunity to stage a coup against Ethereum (ETH). As of now, the difference between the two is more than $3 billion which is unlikely to be bridged anytime soon.

If Ripple (XRP) continues to grow at its current pace, it may even challenge Bitcoin (BTC) at some point in the future. The weekly chart for XRP/BTC already shows that Ripple (XRP) is on the verge of a major breakout against Bitcoin (BTC). The cryptocurrency market does not make much sense right now. The product of a hash war between two Bitcoin Cash teams, Bitcoin SV is now just one step behind Stellar (XLM) and is already ahead of Bitcoin Cash (BCH). All of these developments point to one thing and that is that small cap altcoins or ICOs are not the only ones in danger. Even large projects like Bitcoin Cash (BCH) can be at risk of going belly up. This realization has made a lot of investors rethink their approach to investing in cryptocurrencies.

The best thing about a bear market is that you can clearly see how much a certain project is worth. If Ripple (XRP) can rise to second spot during a bear trend, that speaks volumes regarding its future outlook and the faith of investors in this project. The average investor with less than 5 Bitcoin (BTC) in total holdings is very unlikely to sell at these levels. Most of the bloodbath that we have seen recently can be attributed to major sell offs either by companies desperately looking to stay afloat or by the likes of Roger Ver or Calvin Ayre paying for their mistakes. Either way, Ripple (XRP) has managed to outperform all of them and that is going to count for a lot when the dust settles.
Source: Crypto Daily

Bitcoin (BTC) Finally Presents Perfect Setup For A Massive Short Squeeze

Bitcoin (BTC) currently presents the perfect setup for a short squeeze. The number of shorts has reached an all time high and it is not clear what the bears are thinking or better yet, drinking. At every point of reversal in a market, the investor that goes with the herd suffers the most. The mentality of bulls and bears is completely different as the former trades on FOMO whereas the latter trades on FUD. Both can use market sentiment to their advantage during an ongoing cycle. However, trouble arises when they do not realize that the trend is about to reverse. Most people who were buying Bitcoin (BTC) around $18,000 have already panic sold, with big losses. Those that did not sell wake up every day to a bloodbath that sees their coins drop further in value.
For the patient few, hodling can work quite effectively. If you do not mind missing the opportunity to buy dips and accumulate further, then you can just hold your coins even through losses in the hopes of an ultimate recovery. We have seen Bitcoin (BTC) ‘die’ countless times before. Even the CEO of JP Morgan recently said in an interview that he does not believe that Bitcoin (BTC) is something that is going to vanish overnight. A lot of people now realize that if Bitcoin (BTC) has come this far to have survived against all odds that only means that it is here to stay. So, people buying Bitcoin (BTC) or entering long positions with manageable risk will do well eventually no matter how long they have to wait.

However, those betting against Bitcoin (BTC) are playing a very different game. Time is a friend to the bulls, but it is an enemy to the bears. For the bulls, everything has to happen in the now, when the conditions are ripe. If BTC/USD stages a reversal, it can go up for a long time and may never even drop back to previous levels. This means that bears have a lot more to lose than the bulls and they cannot afford to keep their positions open in perpetuity unless they believe Bitcoin (BTC) is going to zero. The people who bought Bitcoin (BTC) at the top learnt their lesson, but the people who are selling at the bottom have yet to learn theirs. That is where the short squeeze comes in. Just as the bulls got hurt at the top, the bears get hurt at the bottom.

Patience, in this market, is all. Some people just don’t have the patience or discipline to wait for a move to play out. I have seen a large majority of analysts and speculators talking about the “failed Inverse H&S” on Bitcoin (BTC). If we look at the EUR/USD 4H chart, we can clearly see that the pattern is still in play. In fact, a look at the weekly chart for EUR/USD clearly shows that a trend reversal is in the offing. The short term time frame just shows the catalyst behind that reversal. Now, you can follow BTC/USD chart on its own and speculate that the price is going up, down, sideways or in circles, or you can accept that BTC/USD price action is nothing more but a consequence of the moves made by EUR/USD and major stock market indices, in which case you will have to wait and see how those play out.
Source: Crypto Daily

Foxconn And Ethereum Classic (ETC): A Match Made In IOT (Internet Of Things)

Chart for ETC/BTC (1W)
A cryptocurrency is judged based on the number of Dapps or partnerships it has in this market. If it is a ‘centralized’ cryptocurrency like Ethereum (ETH) or Ripple (XRP) their teams announce those ‘partnerships’ and we hear about it. However, if it is a decentralized cryptocurrency like Ethereum Classic (ETC) there is no one to announce any partnership because nobody owns Ethereum Classic (ETC) and we have to do our own digging. How would it look if a group of developers working on Bitcoin (BTC) announce that they have partnered with Newegg or Starbucks to accept Bitcoin? Now, a lot of these groups are going to work towards Bitcoin (BTC)’s adoption but they are not going to sign deals on behalf of Bitcoin (BTC) like they own it. They just work on it.
Ethereum Classic (ETC) is perhaps the only cryptocurrency in the market which is similar to Bitcoin (BTC) in this way. ETC Dev did a wonderful job working on Ethereum Classic (ETC). In fact, they were one of the first to pick it up when the project was left to die after Ethereum (ETH) forked off the original chain. However, it needs to be understood that ETC Dev is not Ethereum Classic (ETC). It was just one of the groups working on Ethereum Classic (ETC) alongside ETC Labs, IOHK and others. A lot of people seem to think that ETC Dev quit because of money troubles but this is not true. ETC Dev worked on this project when there was no one to fund anything. Recently, they were able to count on DFG, DCG or other groups for support, but in the past they had no one to support them yet they continued to work.

Chart for ETC/USD (1D)
When something survives against all odds to grow this big, people take note. Think about it, Ethereum Classic (ETC) does not have one significant Dapp but it is still the 15th largest coin by market cap. It is usually in the top ten in terms of trading volume. The interest in Ethereum Classic (ETC) is not from retail investors. Most of them think it’s a scam or a dead coin, with no Dapps or anything useful. The interest in this cryptocurrency comes from the institutions that see it is a major player in the Internet of Things (IOT) space in the years to come. This is why HCM Foxconn has thrown its full weight behind Ethereum Classic (ETC).

Igor Artamonov and ETC Dev left this month but the people who wanted to steer the direction of Ethereum Classic (ETC) development have been planning this for a long time. When they realized that Ethereum Classic (ETC) had a real shot at becoming the face of IOT (Internet of Things, they launched ETC Labs to make it happen. ETC Labs is already busy funding and developing promising Dapps in fields beyond the blockchain like AR (Augmented Reality), AI (Artificial Intelligence) and IOT (Internet of Things) to position Ethereum Classic (ETC) at the forefront of the fourth industrial revolution.
Source: Crypto Daily

Bitcoin (BTC) Likely To Climb Back To $4,000 But Downtrend Remains Intact

Bitcoin (BTC) is still in a downtrend but it has now bounced off the bottom of the descending channel it is trading in. This is why BTC/USD is expected to at least climb all the way back towards the top of the channel before beginning another wave. A lot of indicators on higher time frames indicate that this might have been the last wave down for the next few months, meaning that we have reached a bottom but a double bottom will likely be formed in the next few months. It is thus very probable that Bitcoin (BTC) will climb back towards $6,000 before it falls to form a double bottom again. Even if Bitcoin (BTC) is due for further downside short term, it will at least have to reach the top of the descending channel.
If Bitcoin (BTC) climbs back towards the top of the channel, it will reach a price close to $4,000. After that, we will have to see where the price can continue to rise or if it faces rejection at the downtrend resistance and falls back into the channel to possibly form a new yearly low. The sentiment remains heavily bearish and the bulls are too weak to step in. The bears are beginning to lose confidence but they are still very much in charge. If the price were to fall all the way down to $3,400, it is unlikely that it will be met by significant resistance from the bulls. That being said, smart money is busy accumulating at these levels as the risk/reward is very favorable.

Most of us like to compare the current bear market with that of 2014 but there are some key differences that we do not see on the BTC/USD charts. Back then we did not have Bitcoin Futures and the OTC markets were not as developed. So, anyone wanting to dump or buy a large quantity of Bitcoin (BTC) had to do it via exchanges. This meant that the price of Bitcoin (BTC) was in line with what was actually happening. Currently, that is not the case. Bitcoin (BTC) futures and more sophisticated OTC markets have enabled the whales to go incognito. They can do a lot of things behind the scenes and retail traders would know nothing about it. If this was not the capitulation phase that would mean that the current market cycle is longer than the previous one.

This seems plausible considering Bitcoin futures and OTC market has enabled the big players to make their moves behind the scene while the market had to trade sideways in confusion. The price action of Bitcoin (BTC) currently gives us very little information as to what is really happening. This is why it is best for long term investors to look at the big picture and dollar cost average their entries accordingly. It is not possible to time every wave up or down unless you are a whale, but is possible to get the general direction of the market. This is why a lot of people prefer to be either swing traders or hodlers instead of day traders in this market.
Source: Crypto Daily

Ripple (XRP) Bears Running Scared As Number Of Shorts Drops Double Digits

Ripple (XRP) shorts started to tumble soon as they reached the previous all time high. In fact, the 4H chart for XRPUSDShorts shows that the bears are so scared that the number of shorts had to drop double digits despite Bitcoin (BTC) and Ripple (XRP) both being trading in the red today. The situation that we see now is that Ripple (XRP) bears not only have to worry about a rising Bitcoin (BTC) but they also have to worry about an independent Ripple (XRP) that could perform a miracle during a market meltdown. So, shorting Ripple (XRP) is beginning to become less and less attractive for the bears. While shorts on coins like Ethereum Classic (ETC) are up significantly for today, Ripple (XRP) shorts are totally getting crushed even as the fate of Bitcoin (BTC) shorts remain uncertain.
The past few weeks have convinced the bears that shorting Ripple (XRP) is not as easy as it used to be. There was once a time when the bears could pull the price down even during most awaited yearly events for Ripple (XRP). During last year’s Ripple Swell Conference, the price of XRP kept on declining before, during and after Swell. Whenever Bitcoin (BTC) would drop, Ripple (XRP) would drop a lot more aggressively. So, the bears began to short it aggressively on exchanges like Bitmex and Bitfinex and it used to work until recently. However, ever since Ripple (XRP) overtook Ethereum (ETH) as the second largest coin by market cap, this situation has changed completely. Not only is shorting Ripple (XRP) less profitable now, it has become a lot riskier from a risk/reward standpoint.

There is now a high probability that XRP/USD might stand its ground during a future Bitcoin (BTC) crash. Besides, Ripple (XRP) is already positioning itself as a direct Bitcoin (BTC) competitor. It would not be surprising if Ripple (XRP) were to escape the influence of Bitcoin (BTC) completely. There have been talks of decoupling in the past and considering that Ripple (XRP) has very little in common with most cryptocurrencies, this would be very likely to happen. Certainly, if it were to exceed the market cap of Bitcoin (BTC) than I don’t think we would see it on a lot of places, for instance Coinmarketcap. They have already made it clear where they stand with Ripple (XRP). Just last year, they deliberately misrepresented the price of Ripple (XRP) by excluding Korean trading volume. That showed up as a big loss for Ripple (XRP) on Coinmarketcap which triggered significant sell off.

Later on, it became clear that this had happened just because Coinmarketcap had excluded Korean Trading Volume from the equation but by then the damage was done. We have not seen Ripple (XRP) get listed on Coinbase despite frequent community appeals and requests. The interest is there, people want to see it on Coinbase, but Coinbase does not want to list it. The point is, many stakeholders in this industry do not consider Ripple (XRP) as part of the family. So it would not be unlikely for it to decouple from Bitcoin (BTC) at some point which explains why the bears are not comfortable shorting Ripple (XRP) anymore.
Source: Crypto Daily

Ethereum Classic (ETC) Shorts Reach All Time High Amid Overreaction To ETCDev Shutdown

Ethereum Classic (ETC) bears were late to react to news of ETC Dev shutdown but once they spotted some weakness, they upped their short positions aggressively. In fact, the weekly chart for ETCUSDShorts shows that the number of shorts for Ethereum Classic (ETC) has now reached a new all time high of Bitfinex. For Ethereum Classic (ETC) bulls, this is a favorable development as it will ultimately bring about the trend reversal that most investors have been waiting for. The bears have no doubt overreacted to the whole situation surrounding the ETC Dev shutdown. It is not even clear yet if that shutdown is temporary, but even if it is; one needs to understand fully what it means.
In this market, the bears are seen as smart and hungry opportunists much like the whales. Now, that is all good as long as they know what they are doing. The bears that have been shorting Ethereum Classic (ETC) since its all time high would have certainly made a killing by now. However, things get messy when these bears start to feel invincible or worse, mistake themselves for being whales. Looking at the above chart, I have no other way to explain this. It sums up the overconfidence of the bears who have not only misunderstood the entire ETC Dev situation but they have put money on it. The situation right now is that the retail bears are incredibly confident and the retail bulls are too scared and confused.

Now, a lot of bulls are telling others that the ETC Dev shutdown is not such a bad thing after all but deep down they have their doubts. It is natural to be concerned but this is not the time to give in to emotions. If you have been through this entire period of bear market to see Ethereum Classic (ETC) fall from its ATH to today’s yearly low, it makes no sense to give up now. If anything, this is the time to be greedy. If you look at the ETC Dev shutdown without considering other related developments, it looks very bad. Igor Artamonov and his team did a lot of work on Ethereum Classic (ETC) and now that they have stopped you are right to think that the future of ETC/USD is uncertain. However, if you look at this from another angle, taking into account relevant developments, things look completely different.

Fundamental and technical analyses are very important, yes, but those work best in mature, more developed markets. In emerging markets like these, you have to take into account the intent and thinking behind every move. You have to see why something happened and what is it going to lead to. I already mentioned in my previous analyses that ETC Dev shutdown was not about money; it was about a regime change. If you start digging up on why a coup was staged against ETC Dev and who were the people behind the coup and what are their objectives, I think you will get very close to finding out whether Ethereum Classic (ETC) has a future or not.
Source: Crypto Daily

Bitcoin (BTC), EUR/USD Poised For A Breakout As IH&S Nears Completion

Bitcoin (BTC) is about to complete a massive inverse head and shoulders pattern. This means that the price is expected to breakout as early as next week. The potential for upside is as high and so is the probability of a rally from current levels. For the past few months, Bitcoin (BTC) has been reacting to the price action on EUR/USD. The IH&S that we see on the BTC/USD 4H chart is also a consequence of that reaction. We are only seeing this pattern form on BTC/USD because EUR/USD is doing the same thing. Now, the EUR/USD has been long due for a reversal which is likely to happen this month. As EUR/USD goes up, the Dollar goes down which means the price of Bitcoin (BTC) goes up in dollar value.
If we were to fully comprehend the risks surrounding the US Dollar at this point, it would seem silly to be measuring the worth of Bitcoin (BTC) in dollars. In fact, it would make a lot more sense measuring the worth of Bitcoin (BTC) in Gold or Silver instead of the US Dollar. Even the Euro would seem to be a better alternative for the time being considering the risks facing the Dollar. That being said, this is not going to change anytime soon and people are going to continue to measure the value of Bitcoin (BTC) in dollars. It climbed to almost $20,000, now it is back around $4,000, in a few years from now it might be close to $100,000. Then it may rise to $1 million per Bitcoin (BTC) for all we know but the thing is, these valuations would mean something different by then.

The EUR/USD 4H chart shows the exact same IH&S pattern that Bitcoin (BTC) and most cryptocurrencies are forming right now. When this completes, we are likely to see a major breakout. In the past few years, we have seen a whole new market emerge thanks to Bitcoin (BTC). This market will see a lot of promising projects secure funding to solve real world problems and challenges. However, it will also attract people who will challenge Bitcoin (BTC) as the one true universally accepted digital money. As we can see, that is already happening. We have Bitcoin Cash (BCH), Litecoin (LTC), Bitcoin SV and a ton of other cryptocurrencies claiming to be better than Bitcoin (BTC). Then we have these terms like Bitcoin (BTC) maximalists and minimalists. In my opinion there is no such thing as Bitcoin (BTC) maximalists or minimalists.

Anyone who believes that something like Bitcoin Cash or Litecoin has a shot at becoming legal tender is either kidding themselves or fooling someone. The sole purpose Bitcoin (BTC) was created was to solve the double spending problem. If we have a ton of sh*tcoins that can be used as legal tender, then Bitcoin (BTC) makes no sense. Bitcoin (BTC) was not created to digitize currencies or to make payments faster or cheaper. Those were all byproducts and if there were a better way to create something like Bitcoin (BTC) without using the blockchain, then we would be using that for the purpose we are using Bitcoin (BTC) today. Bitcoin (BTC) fell all the way from $18,000 to $3,400, but this is not the first time it has happened and it won’t be the last. Short term, the price could go up, down or sideways in terms of dollar value, but in a few years from now none of that is going to matter.
Source: Crypto Daily

Bitcoin (BTC): Inverse H&S Is Still In Play

Bitcoin (BTC) has begun the day in green convincing traders and analysts that the Inverse H&S formation might still be valid. If we look at the above chart for BTC/USD, we can see that Bitcoin (BTC) has completed a left shoulder and a head. Now it is supposed to form a right shoulder around the completion of which the price is expected to break above the 21 EMA resistance. If Bitcoin (BTC) rises above $4,200 we can say that it is finally in the clear for further upside. Until yesterday, there was a strong probability that Bitcoin (BTC) may retest the previous low short term. However, that probability has now decreased with the price rebounding strongly off its trend line.
We have seen similar consolidation in the recent past which has led to subsequent crashes. However, this is the first time we are seeing an inverse head and shoulders in the making. This inverse head and shoulders being formed on the 4H chart has a very high probability of playing out. However, the fact that the price is also trading in a bearish pennant at the same time means that we can expect a short term break below the trend line as well. That being said, it would be surprising to see the Inverse H&S get invalidated at this point considering Bitcoin (BTC) has already been through an extensive correction and this is the most opportune way to turn things around. If the bulls fail to avail this opportunity, the price may be trading in this range for a long time even if it does not fall further.

The recent wave of capitulation has effectively destroyed the bullish resolve to the point that the number of shorts on exchanges like Bitfinex and Bitmex are now near an all time high. The bears have become too confident in their positions. The bulls however remain weak and scared. Long positions on exchanges do not show the same confidence as short positions. We did see the bears give up for a while last week when the number of shorts started to fall, but the past few days have made them confident again. For any market to stage a reversal, one side has to lose completely. The bear market has made the sellers complacent same as the bull market made the buyers complacent.

Two things have to happen before a trend reversal. First, the bulls have to lose faith, which they already have. Second, the bears have to get hurt such that they cannot fight back. We are yet to see that happens but considering the number of shorts that have been piling up on Bitfinex and Bitmex, I think we are very close to seeing that happen. The weekly chart for BTC/USD shows that the price has now found a strong support around $3,458. The RSI for the weekly chart sums up the whole story. Around September this year, the RSI broke above a long term resistance. Many took it as a sign of reversal and got trapped. It was followed by capitulation which pulled the RSI even lower than it has been in years. It was a major setback short term but there was a bright side to it: the previous long term resistance became the new support.
Source: Crypto Daily

Ripple (XRP) Remains Above 5 Week EMA, Further Upside Likely

Ripple (XRP) has been more focused on repeating its own history rather than following the rest of the market. This is why we saw the price trading on its own for the most part as the rest of the market took the fall with Bitcoin (BTC). The XRP/BTC weekly chart shows that the first cycle took 280 days to complete. The next cycle took another 280 days. Now, Ripple (XRP) has begun another cycle which if follows in the footsteps of the previous cycle would be expected to come to completion around mid 2019. During that time, we would expect Ripple (XRP) to complete the cycle against Bitcoin (BTC) that it has already begun.
It is pertinent to note that the price may not necessarily reach a new all time high by then but completing a cycle against Bitcoin (BTC) means that it is likely to reach close to its previous all time high. MACD for the above chart shows that there is plenty of room for further growth but the RSI is now nearing overbought levels. That being said, Ripple (XRP) may take its time but it is expected to complete its cycle against Bitcoin (BTC) next year, same as the rest of the market. Recent developments have convinced most in the cryptocurrency space that there is a strong interest in Ripple (XRP) which is unlikely to fade away anytime soon. This means that strong hands will continue to accumulate Ripple (XRP) at this point and try to keep the demand rising in the months leading to the ultimate FOMO.

Chart for XRP/USD (1W)
Critics of Ripple (XRP) call it a “centralized coin” or a “bank coin”. They criticize Ripple (XRP) for helping the banks and middlemen whereas coins like Bitcoin (BTC), Ethereum (ETH) and other altcoins are supposed to be helping users directly. Honestly, that argument does not hold anymore considering what we have seen in the market. The past few months have exposed the cracks within the foundations of even the most prestigious blockchain projects. It has shown us how greed and the quest for power and control have ripped apart the foundations of most projects. Very few projects in the market are currently true to their vision and have not made any such compromises. The rest of them have been used and abused by a small but powerful minority to satisfy their own greed.

Ripple (XRP) did not have decentralization in its mission but it stayed true to whatever was in its vision. It has delivered a working product and it is helping push for XRP adoption through its xRapid service. As we have seen in the past few months, many notable financial institutions are ready to start using XRP. When the dust settles, we will see Ripple (XRP) adoption rise, not only because it has been one of the best cryptocurrencies to invest in, but also because it is one of the few projects in the market that is actually using blockchain technology to solve a real world problem.
Source: Crypto Daily

Ripple (XRP): Bearish Sentiment Weakens But Bulls Not In Sight Yet

Ripple (XRP) bears seem to be losing interest in shorting this cryptocurrency. The bearish resolve has weakened overall as the market is now due for a recovery and the bears know it. However, there are other reasons why the bears do not feel confident anymore in shorting Ripple (XRP). There is a lot of interest in Ripple (XRP) and as we have seen in the past, Ripple (XRP) may not necessarily follow the rest of the market. This is a big problem for bears who want to capitalize on the aggressive fall in cryptocurrencies during a Bitcoin (BTC) crash. However, that is not all. Despite its series of overextended rallies, Ripple (XRP) is showing no signs of a slowing down. Furthermore, it is showing mixed signals on its charts.
If we look at the above daily chart for XRP/USD, we can see that Ripple (XRP) is forming a major bear flag. In any other market, this would be taken as a strong sign of weakness and could very likely lead to significant downside. However, in the cryptocurrency market you never know whether this pattern is actually supposed to trigger a price drop or serve as a bait to lure some greedy bears to their own slaughter. In itself, a bear flag is a strong sign of an imminent price drop but the problem with focusing too much on one pattern is that we ignore the rest of the technicals. This is why rather than adopting a pattern recognition approach in this market, it is best to adopt the more skeptical approach of elimination where you eliminate possibilities that you hold a natural bias towards.
In this case, our natural bias points to a price drop following completion of the bear flag. However, if we look at the RSI for the above chart, we see something very interesting. As it happens, the RSI for XRP/USD on the daily time frame has broken its near term resistance but not a long term resistance. The RSI is currently trading between the two resistances. Since the near term resistance was broken, it has now become a support. This means that as long as the RSI remains between these two lines, the price is expected to trade sideways or do nothing significant. Another more important conclusion we can derive from this is that as long as the RSI remains below the two lines, we will not see Ripple (XRP) rising or falling aggressively. That being said, Ripple (XRP) will be expected to take a decisive direction around mid December.

The number of shorts for Ripple (XRP) as now reached a historical resistance and is bound to fall drastically. The chart for XRPBTCShorts shows that Ripple (XRP) might have another rally against Bitcoin (BTC) yet despite the XRP/BTC chart saying otherwise. This whole confusion around Ripple (XRP)’s independent moves has made a lot of bears uncertain regarding the future price action of Ripple (XRP). It is hard to tell whether Ripple (XRP) may rise with the rest of the market or hold its ground as the rest of the market falls. This uncertainty has recently made the bears a lot more cautious when it comes to shorting XRP. For Ripple (XRP) investors this is a good development as it means less sell pressure on the cryptocurrency which means it can continue to rise in line with the enthusiasm of its loyal community.
Source: Crypto Daily