Bitcoin (BTC) Is About To Make Its Biggest Move In 14 Months

Bitcoin (BTC) is about to make its biggest move in the last 14 months and investors are worried because it will have important implications. There is something interesting going on with Bitcoin Shorts that the mainstream media is deliberately ignoring. Everybody is talking about how the new JP Morgan coin is the end of Bitcoin (BTC) and that it is over for cryptocurrencies now that we have banks issuing their own. Amidst all these useless debates, important developments that would determine the future outlook of BTC/USD for a long time are being ignored. The daily chart for BTCUSDShorts shows that the number of shorts has now fallen back to its trend line support which had not been tested since February, 2018.
The daily chart also shows that BTCUSDShorts is trading within a descending channel and a rising wedge at the same time, both of which are extremely bearish setups. So, the most likely scenario at this point is that BTCUSDShorts will have to break below the rising wedge and continue trading within the descending channel. Considering that this is something that has not happened in more than 14 months, we believe that a break below the trend line support in BTCUSDShorts will shatter the bearish resolve and a lot of bears would close their short positions which would see Bitcoin (BTC) rising towards its previous market structure around $6,000. It is too early to tell if the price will continue to rise past the previous market structure, but we believe panic closing of these shorts or liquidations would be the catalyst that would see BTC/USD rise towards $6,000.

Investors that expect a fall to $3,000 at this point ought to realize that everything is in favor of a massive rally to the upside at this stage. The 1H chart for BTC/USD shows the price trading within a bull flag that could break to the upside anytime now. There is a risk that the crossover of the 50 and 200 moving averages on the 1H chart might lead to short term downside over the weekend. However, this setup still remains very bullish and it should be accepted as such by accumulating at these levels instead of selling. The sentiment right now is extremely bearish and there is not much that could happen at this time that could make things any worse.
In the past few weeks, many professional traders and analysts have mentioned that for the price to bottom, we have to see the mainstream media say “Bitcoin is dead” more often. I think we have finally seen that happen after the JPM coin announcement. I have to say I was shocked to see Barron’s publishing an article titled, “JP Morgan Just Killed the Bitcoin Dream” given its credibility and reputation. However, there is a method to this madness. Most of these media outlets answer to larger interest groups that use them to achieve their objectives. This is why it is so important where you get your information from. As long as there are media outlets like Crypto Daily around, investors that are willing to go the extra mile to find the truth will always be able to do so. 
Source: Crypto Daily

Ethereum (ETH) Likely To Break To The Upside Following Bullish MA Crossover

Ethereum (ETH) is still trading within a large bull flag that is expected to break strongly to the upside now that the moving average cross over on the 4H chart for ETH/BTC has formed a golden cross. This is often a very bullish development that results in the price rising sharply to the upside. We have seen this happen before in the case of Ethereum (ETH) when the price had bottomed out against Bitcoin (BTC) in December, 2018. Soon afterwards, the price rose above the 50 MA which was later followed by a golden cross that resulted in the price rising to its January, 2019 high. This cross over is expected to result in a similar break to the upside which will lead to Ethereum (ETH) finally forming higher highs and higher lows.
The price is still way below its previous all-time high and there is plenty of room for growth to the upside. However, market conditions still remain uncertain and Ethereum (ETH) is unlikely to make a move on its own without the blessing of Bitcoin (BTC). That being said, soon as the market recovers, we will be ready for the next altcoin season which will see Ethereum (ETH) leading altcoins towards aggressive gains against Bitcoin (BTC) just like we have seen in the past. We have already seen that Ethereum (ETH) has regained its second place (in terms of market cap) just before the beginning of the next altcoin rally. The number of new ICOs is still on the rise and a lot of startups are waiting to hold their ICOs soon as the market recovers.

As new projects hold their ICOs in the months ahead, we will see demand for Ethereum (ETH) rise again as most investors in these ICOs will have to first buy Ethereum (ETH) in order to invest in those ICOs. This had a strong impact on the price of ETH/USD during the previous bull market and we believe it will have the same effect now. Ethereum (ETH) might not be able to rise as much in terms of percent gains but a five digit price is still quite reasonable. Investors should see 2019 as the best time to invest in Ethereum (ETH) but it does not mean they should expect to see significant returns on their investments this year. In fact, the four year cycles that we have seen before will likely follow again unless something extraordinary happens in the stock market.
The reason we believe the four year cycles will keep on following as before is because the strongest force in this market that influences price the most is supply and demand. After every halvening, we see an aggressive running up that leads to most cryptocurrencies reaching their new all-time highs. We expect the same to happen this time. There are plenty of confusions regarding the Fed’s next move and the state of the stock market. Those factors affect the price of cryptocurrencies in a big way because this is still a very risky market and when things go bad, investors are eager to get rid of their risky investments first. However, we believe that this confusion will continue throughout 2019 and the stock market will continue to look for help and the Fed will ultimately have no choice but to provide it.
Source: Crypto Daily

Why Ripple (XRP) Did Not Fall After JPM Coin Announcement

A lot of cryptocurrency enthusiasts expected Ripple (XRP) to decline significantly after JP Morgan CEO, Jamie Dimon announced their new JPM coin. As this coin will be used to settle institutional transactions same as XRP, many believed that this would deal a severe blow to the price of XRP/USD. A lot of Bitcoin (BTC) maximalists started attacking Ripple (XRP) on social media forums all of a sudden and rumors that some developers have left Ripple began to surface. This may have happened to Ripple (XRP) for the first time but this kind of fear mongering is not new. In fact, we saw it when ETC Dev announced shutdown and then Ethereum Classic (ETC) had the 51% attack. After that when Ethereum (ETH) delayed its Constantinople hard fork due to some security concerns, a lot of people started saying it was game over for Ethereum (ETH).
The takeaway from this whole discourse is that such developments towards the end of the bear market are just orchestrated ploys to suck more blood out of the market. If you are expecting something big to happen short term after the JPM announcement, please know that we have seen such developments in the past with no significant impact on the price whatsoever. The Van Eck ETF Rejection was a far bigger event than some JPM coin. Yet it failed to pull the price of Bitcoin (BTC) like the market makers wanted to. The thing is, the big boys know exactly what is up. So, if one of them dumps to create fear in the market, one of their fellows is going to scoop it up. The end result of this is quite obvious. So, what they are looking for here is for the retail traders to panic not the professionals.

JP Morgan is no doubt a large financial institution but in terms of technology, Ripple (XRP) is still far ahead. Besides, Ripple (XRP) is not a bank; it is a company that provides services to banks. So, a lot of banks would be open to using XRP instead of their nostro/vostro accounts. As for JP Morgan, its coin will only be used for inter-bank transfers. Another important thing to point out is that a lot of people do not trust the banks anyway. Moreover, they might find it difficult to make big changes on a large scale compared to Ripple (XRP).
If you look at the charts for XRP/USD, it is obvious to see that fear is being infused into the market at a point when Ripple (XRP) is prepared for a breakout. If everybody is so concerned all of a sudden why are they not selling? That is because the people you see bashing XRP on Twitter or Reddit had no XRP in the first place. If they had any, they would have sold them now and the price would have tanked. All such statements like, “This is the end of XRP” or “JPM is the new XRP killer” should be given no more thought than statements like, “XRP is going to $500 per coin”. 
Source: Crypto Daily

Rising SPX/GDP Ratio Points To Game Changing Outlook For Bitcoin (BTC)

Companies are seldom worth their true value when it comes to market capitalization. Some companies are overvalued and some are undervalued but very few are rightly valued. So when it comes to valuation, people have different approaches. Some like Warren Buffet stress on the debt to equity ratio which I also strongly agree with. The debt to equity ratio of a company is one of the best ways to find a company’s true value. However, we would like to move this discussion towards Bitcoin (BTC) and analyze it from a macroeconomic perspective. To do that, we will first look at the SPX/GDP ratio on the monthly chart for S&P 500. The price of the S&P 500 Index is shown by the candles whereas the GDP is shown by the purple area line.
During the industrial revolution, the economy of the United States was booming in the real sense. The SPX/GDP ratio was close to normal and we had real growth. Most of this lasted throughout the 90s just before the dot com boom. During the dot com boom, the S&P 500 rose significantly higher compared to GDP of the United States. However, then the dot com bubble pooped and the ratio started to come back to the mean once again. It did not correct fully and started to take off again, but soon afterwards the global financial crisis kicked in and it finally started to decline again. This time the SPX/GDP ratio fully reverted to its mean. Now, this was the prime time to go long on stocks. So, a lot of investors became greedy and money returned to the market.
 The Fed eased things with aggressive quantitative easing after the crisis which made borrowing cheaper and everybody started pumping money into the stock market. The end result of this was a bull run that has yet to stop. If we look at the current SPX/GDP ratio it is mind blowing. At one time during 2013, the market dodged a bullet which would have in fact ended the mania back then and the US economy would have been in a far better shape today, but greed took over and the price kept surging. As long as the S&P 500 remains above the 50 Month MA, things will remain normal. We will see this continue for a while but investors will realize quite soon that the stock market is going nowhere while their colleagues are hitting it big in the cryptocurrency market. 

These people are not going to put their money in treasury bonds or in the bank after the stock market fails them. They are going to look for opportunities and they are going to find them in the cryptocurrency market. The Fed recently changed its stance and there are now concerns that further rate hikes might be on the way. This does not look good for the stock market near term and if it does not look good for the stock market near term it does not look good for BTC/USD near term. However, it is important to note that this is the case with most financial assets. There is no direct or inverse relationship at all times, it does not work like that. For instance, during the previous financial crisis, we saw Gold fall and then rise when it should have held its ground or shot up from the very beginning without going down.
However, we have to understand that simple direct or inverse relationships might have theoretical meaning but they do not work like that in practice. If the stock market crashes, investors are going to sell whatever they have to cover their losses. That means selling assets that may be profitable. Now, they are not going to sell all of their assets that would be a good hedge against the stock market but they will sell some in the beginning. This is why in the case of a financial crisis, BTC/USD is likely to crash first, but what happens shortly afterwards? We believe that during the next financial crisis, most institutional investors who want to move out of their stock positions will choose Bitcoin (BTC) as one of their safest bets.  
Source: Crypto Daily

Litecoin (LTC) Faces Rejection At 200 Day MA But Golden Cross Draws Near

Litecoin (LTC) has achieved remarkable growth in the past few weeks. The daily chart for LTC/USD shows that the cryptocurrency surged more than 30% in just one day. However, the rally had to come to and when the price reached the 200 Day MA. As we can see, the price has been falling constantly after facing rejection at the 200 Day MA. Normally, we would expect the price to retrace a lot more after such an aggressive rally. However, something on the daily chart for LTC/USD hints that a big move to the upside is yet to come. If we look at the chart, we can see the price sandwiched between the 200 Day MA and the 50 Day MA.
Whenever the 50 Day MA crosses above the 200 Day MA, a golden cross occurs. This has always resulted in a strong move to the upside for Litecoin (LTC). There is no reason to doubt that this time will be any different if the crossover occurs. If the price falls further, it will find support atop the 21 Day EMA. If it falls even more, then we have the strong support at the 50 Day MA. However, the longer the price stalls a move to the upside, the more aggressive the move will eventually be. This cross over was expected around November, 2018 but the market took a swing to the downside and as a result the gap between the two moving averages widened.

However, things are a lot different now as the price is no longer below the 50 Day MA. It is trading between the 50 Day and the 200 Day Moving Averages and the crossover is a lot more likely to occur. Both RSI and MACD profiles for LTC/USD show that there is significant room for a retracement to the downside but the inevitable will still have to occur. The price may fall some more but ultimately it is supposed to see a golden cross that will push it closer to $100. It is also important to note that Litecoin (LTC) has its next halvening event in August and the price could receive a major boost before that.
Upgrades and improvements to networks are favorable developments that at times lead to big moves to the upside. However, halving tops the last when it comes to making a positive difference in price. Halvening is a straightforward event that uses the basic principles of supply and demand. When the mining rewards are cut in half, it is obvious to see that miners will have to spend a lot more resources to mine one Litecoin (LTC). Therefore, they would want to sell their Litecoin (LTC) at a higher price to turn a profit. We have seen over the past few years that making improvements to Bitcoin (BTC) on a larger scale are not as simple which is why coins like Litecoin (LTC) continue to have a use in this space for being a lot faster and cheaper than Bitcoin (BTC).
Source: Crypto Daily

Why Stellar (XLM) Has More Room For Growth Than Most Large Cap Coins

Stellar (XLM) has reached the far end of the falling wedge it has been trading in. This is a rare sight to see in cryptocurrencies but when the market is down and sentiment against a particular coin is this negative, anything is possible. All hope of a recovery around November, 2018 was lost when the price plunged below the 50 Day MA. As long as XLM/USD remains below the 50 Day MA, there is no hope for any bullish setup. That being said, as the overall market recovers, we will see that the gap between the 50 Day MA and 200 Day MA on Stellar (XLM) is a lot wider than the ones seen on most other large cap coins. This means that Stellar (XLM) has more room to run compared to other top ten cryptocurrencies.
As the bear market draws to an end, smart money is busy accumulating top performing coins. Stellar (XLM) is one of them and as we have seen in the past, it performs much like Ripple (XRP) in terms of growth. The difference is that it is a more ‘decentralized’ cryptocurrency than Ripple (XRP) which means it is not interested in protecting the banking status quo and wants to revolutionize it. Ripple (XRP) on the other hand wants to help the banks put up a fight to maintain their status quo. This makes XLM/USD and XRP/USD good hedges against one another for investors that are in it for the long haul. Besides, the simple game where people just put money in any crypto of their choice and the market starts surging higher along with their favorite crypto cannot last for long.

There was a time during the dot com boom when people could have bought anything and made a lot of money. However, there came a time when that approach no longer worked. Anything with a dot com in front of it did not necessarily have to succeed and people realized that. Those that did not, had to pay for the lesson in due time. In the cryptocurrency market, we have seen that a lot of new coins made a lot of gains during the previous bull runs. However, when things got tough and we entered a bear market, a lot of those projects went belly up. Some declared bankruptcies, others lost too much funds and couldn’t operate anymore so they quit.
The daily chart for XLM/BTC shows that Stellar (XLM) is also trading in a falling wedge against Bitcoin (BTC) and is expected to correct to the upside any time now. The RSI is in oversold territory and the MACD crossover indicates a near term shift from bearish to bullish momentum. It is thus obvious that Stellar (XLM) has a lot of room to run against other large coins short term. However, considering that Stellar (XLM) wants to empower the end user to be in charge of their finances without having to rely on a middleman, there is a high probability that Stellar (XLM) might eventually beat Ripple (XRP) at this game and come out on top. Yahoo was a lot bigger than Google and had a larger customer base but we all know how that turned out in the end.
Source: Crypto Daily

Bitcoin (BTC) Consolidates Above 21 Day EMA As Bulls Eye A Rally Past $3,650

Bitcoin (BTC) has been consolidating above the 21 Day EMA for seven days in a row. The consolidation has now extended so far that the price is almost ready to break out past $3,650 as early as this week. The 4H chart for BTC/USD shows that the 50 MA is about to cross above the 200 MA. This is going to be extremely bullish if the crossover goes as expected. The price could be expected to climb above $4,000 after such a break out. It is becoming increasingly clear that Bitcoin (BTC) is preparing to test its previous market structure around $6,000. That is also the average price to mine one Bitcoin (BTC). So, we are going to see in the next few days and weeks whether BTC/USD is ready to go back to normal again.
If we are going to know that the price is not ready for a trend change yet, the only way we will get a confirmation is through a rejection at the previous market structure. This is the only way it works and it does not apply to Bitcoin (BTC) alone. In most market cycles when the price is expected to proceed with a trend reversal, it is expected to break past its previous market structure. If it does not, then traders have a confirmation that the price is going lower. However, there is no reason to be bearish at this time. In fact, it is hard to see why anyone would want to be bearish at this point. If the price goes up towards $6,000 and proceeds towards $8,000, we will have the confirmation that it has started a bullish cycle.

Similarly, if the price faces a rejection at the previous market structure, we will have a confirmation that the bear trend is not over yet. In other words, there is not much to lose by being long on BTC/USD at this point regardless of your long term bullish or bearish bias. If the price does succeed in breaking past the previous market structure and climbs towards $8,000, you would have missed the opportunity possibly forever. When you see the price going from $3,000 to $8,000 and you miss the opportunity, it is very hard to get back in regardless of where you think the price is headed long term.
There are plenty of smart people in this market who can draw the perfect charts and use the most sophisticated indicators. However, trading requires a lot more than that. You have to be patient when there is no play but when there is an opportunity, you have to embrace it. At the end of the day, it all comes down to risk and how you manage that risk. All the lines and marks that we draw on a chart just show us the possibilities. If you analyze them further, you can deduce the probabilities as well. However, there are still a lot of other variables like position sizing and risk management that many traders ignore. The daily chart for BTC/USD shows a golden cross that will come to fruition around mid-2019. If you missed buying Bitcoin (BTC) during 2014-15, this might be your chance.
Source: Crypto Daily

Ethereum Classic (ETC) Holds Strong, Defends A Break Below 21 Day EMA

Ethereum Classic (ETC) has been trading sideways for the past five days but it can be credited with one achievement and that is holding strong above the 21 Day EMA. The price has made two attempts to break out during the past 48 hours but it has failed miserably. The daily chart for ETC/USD shows that the price is unlikely to break past the $4.2 resistance anytime soon. That being said, the price is holding strong above the 21 Day EMA and as long as it defends that level, Ethereum Classic (ETC) bulls have nothing much to worry about. RSI on the daily chart has also painted a bull flag same and indicates that the price might have ample room for a run up.
Volume has dried up significantly compared to the past few months which means that the next move could push the price hard in either direction and most retail traders would not be able to ride it. This is why margin trading is so risky at current levels. The price action is choppy and you do not have ample time to get in and get out before the next big move. The best course of action at this point is to start accumulating if you believe in the long term potential of Ethereum Classic (ETC). The daily chart shows that ETC/USD is still trading within a large ascending channel and is currently close to the bottom of this channel. Soon as the price breaks past the $4.2 resistance, it will be in the clear to resume its rally towards the top of the channel.

If Ethereum Classic (ETC) succeeds to rise in the next few weeks, we could see the price approach the top of the channel to reach a price target of $6 or higher before it can continue higher or fall back to lower levels. If Bitcoin (BTC) retests its previous market structure like we expect it to, then other cryptocurrencies will have to do the same. If that happens, we could see ETC/USD rise a lot higher in the weeks ahead. This means that it is a good idea to invest in Ethereum Classic (ETC) at this point whether you believe in its long term potential or not. This cryptocurrency has far been left behind while the rest of the market has been shooting up. Seeing as how the Dapp development activity is on the rise and new developments teams as well as companies are getting more interested in this blockchain, this might be the best time to start accumulating before the upcoming rally.
The daily chart for ETC/BTC shows that the price is about to break out of a falling wedge which could see it rise significantly against Bitcoin (BTC) in the weeks ahead. The 200 Day MA could be a potential barrier but once ETC/BTC enters an uptrend, it will be able to break past it eventually. Investing in Ethereum Classic (ETC) at this point is a lot similar to investing in Litecoin (LTC) in its early stages. Just like Litecoin (LTC), Ethereum Classic (ETC) has a limited supply. Moreover, Litecoin (LTC) set out to offer alternative solution to some of the problems with Bitcoin (BTC). Ethereum Classic (ETC) is doing the same by offering alternative solutions to lack of immutability and decentralization issues with Ethereum (ETH).
Source: Crypto Daily

Ripple (XRP) Loses Second Spot To Ethereum (ETH) Before Altcoin Season

Ripple (XRP) has finally lost its second spot back to Ethereum (ETH) after holding on to it for the most part throughout the bear market. It is not clear yet whether Ethereum (ETH) might be able to hold to this position for long especially when cryptocurrencies like Litecoin (LTC) and Stellar (XLM) gain more attention in the months ahead. However, Ripple (XRP) seems to have lost it for now and may not be able to reclaim it anytime soon. The daily chart for XRP/BTC does show that Ripple (XRP) has a lot of room for growth yet. The bullish pennant seen on the chart above has been waiting to break to the upside for a long time but sideways movement in Bitcoin (BTC) has been stalling a break to the upside so far.
Ripple (XRP) is just one heartbeat away from breaking past the 21 Day EMA against Bitcoin (BTC). This would pave the way for Ripple (XRP)’s next bull run and the price might see significant growth around mid-2019 during the altcoin season. That being said, a lot of ICO projects on the Ethereum (ETH) blockchain still have better prospects of outperforming both Ethereum (ETH) and Ripple (XRP) in terms of growth during the upcoming altcoin season. However, Ripple (XRP) is one of the best investments in terms of risk/rewards and there is a reason hedge funds like Arrington XRP are so optimistic about its future prospects. Recently, Visa and Mastercard invested in Ripple’s xRapid service. There is a good chance that corporations like Visa, Mastercard, Paypal and others would want to put up a final fight with the help of Ripple as services like Coinbase Merchant and Bitpay threaten their existence.

There is no doubt that the world is headed towards a single economy and perhaps a single government if there is such a thing. However, in capitalism money is the government and when that money is global, so is the government. The cryptocurrency market, unlike the NYSE, TSE or LSE is already a global market. Cryptocurrencies from across the globe can be bought and traded on any exchange. Soon we will see traditional companies tokenize their shares. The end result of this transition will be a stark decline in reliance on centralized companies like Visa, Mastercard or Paypal. However, we have a long way to go before that can happen and until that happens; these companies would want to put up a fight with the help of companies like Ripple. 
The descending channel that XRP/USD has been trading in since the beginning of this year will is yet to be broken. The price is still struggling to climb past the 21 Day EMA. If it succeeds in climbing above the 21 Day EMA, we could see a break out of the descending channel which means the price will then have to test the next trend line resistance. However, if the price fails to break past the 21 Day EMA and close above it, it is very likely that we will see a fall towards the bottom of the current descending channel to a price of $0.28 or lower.
Source: Crypto Daily

Ethereum (ETH) Breaks Descending Channel, Resumes Rally Towards $200

Ethereum (ETH) has been trading in a descending channel since the beginning of the year. However, the price has now finally broken out of the descending channel to resume a long awaited rally towards $200. There is not much in the way of ETH/USD to pose as a strong barrier against a rise to the top of the large ascending channel. That being said, sideways movement in Bitcoin (BTC) might slow it down some more. However, the inevitable will have to happen sooner or later and the price will have to touch the top of this ascending channel before it can pick a defining direction for the next few months. The daily trading volume remains low and major trading activity remains dominated by algorithms. Real buying interest is yet to be seen as investors are too scared to get back into the game.
Those of us who have been around long enough to have seen the entire bear market can relate to the marvels of human psychology witnessed during that period. For instance, you might have seen a large number of people on Twitter or Reddit saying that they would sell their houses or their cars to buy Ethereum (ETH) at $400, but now that the price is trading just above $100 nobody wants to buy! It is true that there are a lot of people who might have bought at $400 and would in fact still be holding on to their coins with deep losses. However, there are a lot of other people with unrealistic expectations. Despite the fact that Ethereum (ETH) and most other cryptocurrencies are down more than 95% form their all-time highs, a lot of retail investors still expect the price to fall a lot more.

Most of these traders lost money buying high and selling low which is why they are waiting to see the price drop a lot lower so they can get the same number of coins that they lost. It is important to note at this point that there is a very high probability that the price has found a local bottom if not a global bottom. This means that the price will now have to retest the previous market structure before it can fall further. The ETH/BTC 4H chart shows a bull flag that is likely to break to the upside. We could see another move to the downside first before the price can rise but considering that the price is holding strong above the 200 MA on the 4H chart, the most probable scenario is that ETH/BTC will break to the upside without retracing significantly.
Ethereum (ETH) is at a far better point today in terms of risk/reward not just because its price is down more than 90% from its all-time high, but because its fundamentals are better than ever. The price might have taken a toll during the bear market but the blockchain has been seeing a lot of development activity throughout. It is not yet clear why the  Constantinople upgrade is being delayed but chances are it will coincide with other favorable market developments like Litecoin’s halvening and the entire market might be able to see a mini bull run at the same when that happens.
Source: Crypto Daily

Ethereum (ETH) Remains Steady Above Trend Line Support, Eyes $200 Target

Ethereum (ETH) has remained strong above its trend line support and the price is unlikely to fall further at this point. A rally to the upside is also hard to expect considering the price has failed to capitalize on several attempts to breakout. However, we believe that the price is deliberately being ‘maintained’ in a sideways movement so the whales can accumulate because the next move is going to be a big one. The price could easily reach a target of $200 if not higher during a correction to the upside. The long term trend line resistance seen on the daily chart for ETH/USD is yet to be broken. That being said, the price is extremely unlikely to fall further without having tested this resistance first.
Even if the price fails to break past the trend line resistance, it will still be able to reach a price of $200. That means that a bullish entry at this point is well worth the risk reward. If the price faces a rejection around $200, traders will know to close their positions. If it continues to climb north of $200, they can leave their positions open till their targets are reached. Either way, this is a favorable point for bullish entries even if ETH/USD has to face a rejection and fall lower to a new yearly low. If the price faces a rejection at the previous market structure that would be a very favorable point for bearish entries because a rejection at market structure would result in the bullish resolve being completely crushed. The bears will then be in charge to do whatever they want with the price.

Chart for ETH/BTC (1D)
There are a lot of bears in the market at this point but it is pertinent to note that very few of them are actually long term bears. The majority is convinced that the price of Ethereum (ETH) is expected to rise long term. So, they are only bearish as long as the price remains above their buy targets. Once the price drops to a level they are comfortable to buy, they will turn bullish. Such investors are extremely unlikely to sell in the face of market pressure. They are also unlikely to sell for small profits and will hold on to their coins to ride the next bullish cycle that is about to come.
One of the reasons we are not seeing as much buying and selling as we would like to is because most investors have already run into major tax issues and they do not want to further complicate their situation with buying and selling in an indecisive market. If you buy and hold Ethereum (ETH), you do not have to pay any taxes in most countries. However, the moment you sell your coins into fiat currencies, it becomes a taxable event. This is another reason why most cryptocurrency investors are waiting for the ‘perfect bottom’ so they can just buy and hold for a long time without having to panic sell.
Source: Crypto Daily

Ripple (XRP) Poised For An Aggressive Breakout In The Weeks Ahead

Ripple (XRP) is expected to rally hard in the weeks ahead as the price is now ready to break out of the bullish pennant that we see on the 4H chart for XRP/USD. There might be some sideways movement short term but this is because a lot of investors are still afraid the price might fall further. Once they realize that the price is in fact rising to test the previous market structure, they are going to board the train. RSI for the 4H chart shows that there is plenty of room for a rally to the upside and no strong barriers. All that is needed at this point is bullish momentum to return back to the market so the price can break above the bullish pennant.
Based on the price action on the 4H chart for XRP/USD, we expect that this move might come in as early as Valentine’s Day. Once again, XRP/USD will prove to its investors that it is worth all their love and support. If it were not for the recent sideways movement in Bitcoin (BTC), Ripple (XRP) would have already taken off towards $0.50 on news of  partnerships and adoption of its XRP token by major financial institutions for use instead of their nostro and vostro accounts. We have seen XRP/USD made independent moves in the past and it would not be surprising to see the same happen this time if BTC/USD continues to stall a correction to the upside. If this was any other market, we would have seen a definitive move by now. However, the fact that so many institutions are preparing to get into cryptocurrencies, it is reasonable to expect that they are going to stall as much as they can while they accumulate.

Chart for XRP/USD (1D)
For mainstream investors, accumulating cryptocurrencies of their choice might not be a big deal but with major banks and hedge funds it is a whole other story. For instance, if a bank like Goldman Sachs wants to buy Bitcoin (BTC), it will need a lot of time just to fill its order even on an OTC exchange. If they were to accumulate something like Ripple (XRP), they will have to go through an even more complicated process as they will have to find individuals who are willing to sell their coins in large number to a bank just when the market is about to recover. This is why we are seeing all this consolidation and sideways movement.
The big players in the game know exactly what is going on; it is the retail investors that are losing their patience on every other day of consolidation and thinking to themselves if the market is going to fall further. If it were not for their own interests, the whales would have moved this market upside down to shake out all the retail investors so they can accumulate their coins dirt cheap before the next rally. However, they know full well that if they spook the horse beyond the point of no return, they might lose it. So, they want to instill fear in the market but to the extent that ensures that their long term investments are safe. This is why long term investors should pay no mind to short term manipulation and remain focused on the big picture.
Source: Crypto Daily

Bitcoin (BTC) Likely To Remain Range Bound Between $3,000 And $6,000

Bitcoin (BTC) has been trading sideways after its big move to the upside but investors are confused once again as to what its next defining move might be. The last time we had consolidation for this long; BTC/USD crashed hard below $6,000 and made a new yearly low. Cryptocurrency investors thus have good reason to be fearful of further decline at this point. That being said when something appears this obvious investors need to be more cautious. It is true that a lot of historical patterns and trends repeat over and over again in the trading history of most financial assets. However, we have to understand why something happened and in what circumstances it happened.
For instance, if we talk about consolidation, BTC/USD has consolidated many a time during its market cycles. Does this mean that every time the price consolidates during a bear market, we will see a move to the downside? Not at all especially when BTC/USD is this close to a bottom. The price consolidates when it cannot go up or down because there is a lack of momentum. It is consolidating again but the circumstances are the opposite of what they were back when the price was trading around $6,000. As most of you will remember, the sentiment around $6,000 was still overly bullish. Very few people expected the price to fall to $3,000 or lower levels. This was because $6,000 had been tested time and again and it had held strongly as a market structure.

However, when the price fell below $6,000 all hell broke loose and investors had no idea what the floor might be.  That being said, the number of buy orders around $3,000 could be spotted from a mile away and it was clear that investors were hopeful that the price might stop around those levels. Now, why were they so sure the price will find a floor around $3,000? To find an answer to this, let us go back to one of our very old analysis in which we talked about the cost of mining Bitcoin (BTC). Different countries have different costs of mining Bitcoin (BTC). On the higher end we have Korea with a mining cost of around $18,000 per Bitcoin (BTC). However, on the lower end we have China with a mining cost of around $3,200 per Bitcoin (BTC).
All the big mining pools for Bitcoin (BTC) are still based in China. It is a fact that most of Bitcoin (BTC) mining still takes place in China despite the numerous bans. So, it makes sense to see why they would want to defend the price against falling below their mining cost. A lot of people expected BTC/USD to stop around $6,000 because that was the average price to mine one Bitcoin (BTC). However, they underestimated the greed in this market. A lot of miners kept on mining even if they were not turning in a profit as long as they were not making a loss. They know their Bitcoins are going to be worth a lot more in the long term so why should they stop mining as long as they are not losing money. The price is currently preparing to rise towards $6,000 to test the previous market structure. There is a high probability that it will face a strong rejection and remain range bound between $3,000 and $6,000 for the rest of the year.
Source: Crypto Daily

Ethereum Classic (ETC) Remains Strong Above Key Support Levels

Ethereum Classic (ETC) is stalling a corrective move to the upside against Bitcoin (BTC) but the price remains strong above key support levels. The daily chart for ETC/BTC shows that the price has already broken out of a falling wedge and is now expected to rise towards the historical trend line resistance. This trend line resistance was only tested once last year which lead to an aggressive correction for Ethereum Classic (ETC). The price is now ready to test it once again but we have yet to see whether it will lead to another correction. This is because if the price were to go through with another correction it will have to form a lower low which means the ETC/BTC will have to break a very strong support at 9,685 satoshis. So far we have no reason to believe that is going to happen but it remains a possibility nevertheless.
Before we can speculate on whether the price would go up or down long term, let us analyze what has already happened. ETC/BTC ran into trend line resistance in August, 2018 and was forced to make a lower low and decline to a long term support. The price then rallied from that level but did not have the momentum to continue rallying so it entered a falling wedge. Next, we saw ETC/BTC break out of that falling wedge but it has yet to rally to the upside. One of two things is going to happen at this point. Either the price is going to retest the support line and end up breaking it to the downside which is very unlikely or the price is going to rise towards the historical trend line.
Considering the overall outlook of the cryptocurrency market, I think the probability of a move towards the trend line resistance is a lot higher than a retest of the previous support. That being said, there is a high probability that the price may retest the trend line resistance, face rejection and fall back towards the previous support. Even then, we do not believe that the price may breach such a critical support unless it is prepared to enter a long term bear market. However, the odds of a break below the support would be significantly higher after a rejection at the trend line resistance.

When so many clues are pointing to the same outcome, it is hard to ignore them. As much as we want to believe that this is not the bottom and the price may fall further to new lows, there is a strong probability that ETC/USD has already bottomed. The price has found a new trend line support as seen on the weekly chart. This trend line support has been tested more than thrice so far and it has held strong. If we look at the bullish gartley pattern on the ETC/USD weekly chart, we can also see that the price has bottomed in the same manner that it had topped in.
In late 2016 when ETC/USD began its rally, we saw a strong move to the upside followed by a correction which was then followed by a more aggressive rally. Similarly when the correction started in early 2018, we saw an aggressive correction to the downside followed by a correction to the upside and then a correction to the downside to complete the bullish gartley pattern. Both sides of this pattern are now almost mirror images of one another. Now, one might argue that the price could fall further from current levels but the odds of a move to the upside far outweigh the odds of a move below the trend line support.
Source: Crypto Daily

Why Litecoin (LTC)’s Bullish Spree May Be Far From Over Yet

Litecoin (LTC) has faced some strong resistance after its aggressive rally that saw the price surge by more than thirty percent in the past few days. The weekly chart for LTC/USD shows that Litecoin (LTC) has retraced towards the 21 Week EMA as expected. Interestingly, the recent price action bears a strong resemblance to the one seen during May, 2015. The price rallied in a similar manner back then but faced a strong resistance at the previous support turned resistance line. As we can see on the chart, LTC/USD ended that week in red while staying above the 21 Week EMA. We can see that the price is expected to do the same this time. If history repeats itself, we should see LTC/USD rally aggressively in the weeks ahead to reach a price target of $100.
In the past few days, we have seen some analysts discuss the possibility of Litecoin (LTC) taking the lead to show the way to Bitcoin (BTC). If we look at the weekly chart for LTC/USD, we can see that if the resemblance between now and 2015 actually leads to a rally towards $100 that would mean that the price has already bottomed. It may retrace after reaching the $100 target but it will still be way higher than where it started to rally from. All things considered, I think this scenario makes the most sense. This way, BTC/USD will be able to remain above the 200 Week MA while being able to see a rally towards its previous market structure followed by a correction that would lead to sideways movement for the remainder of 2019.

There are more reasons to believe that Litecoin (LTC) may indeed determine the course of this market apart from technical analysis. On August 8, 2019 Litecoin (LTC) will undergo its next halvening. This means that we will see a Litecoin (LTC) halvening way before Bitcoin (BTC)’s halvening. Historically, we have seen that Litecoin (LTC) as well as Bitcoin (BTC) both rally aggressively before halvening. Considering that Litecoin (LTC)’s next halvening is in August, we should see the price begin to rally as early as next week. If we look at the weekly chart for LTC/BTC, we can see that the halvening effect is already visible in the price action. The interest in Litecoin (LTC) has once again started to rise and it is not going to fade away until after the halvening.
One thing we have seen in this market is that events like Constantinople Upgrade or a Coinbase listing might lead to short lived interest but there is no sustainable growth. However, with halvening events it is a whole different story. This is because most of the people in this market care more about simple supply and demand than anything else. Every time a mineable cryptocurrency experiences halvening, it means that the block rewards for mining are cut in half, hence the term halvening. So, if a miner had to spend X amount of money to mine one Litecoin (LTC), now they will have to spend 2X. It is not hard to see how that will affect the price of Litecoin (LTC).
Source: Crypto Daily