Ethereum (ETH) Dominance Could Rise Again But What Lies Ahead For Altcoins?

Ethereum (ETH) has lost ground against Bitcoin (BTC) the past few weeks but we might have a bullish reversal around the corner. The 4H chart for Ethereum dominance (ETH.D) shows that there is room for dominance to rally further near term towards the 38.2% fib extension level. If it ends up breaking out the triangle, we could see it break past the 200 moving average as well which could be a major catalyst for an altcoin run near term. Ethereum (ETH) like the rest of the altcoins might end up losing the most during the next downtrend despite its temporary gains. Investors would therefore be better off trying to dollar cost average their sell orders to gradually minimize their exposure before the next decline.

Investing has become far too easy this past decade. There are a ton of platforms and apps that let you invest in index funds and exchange traded funds which has now pushed the stock market deep into a bubble phase. The more air that is pumped into this bubble, the harder it is going to pop in the end. The average investor is too comfortable buying stocks even at such higher valuations. In my opinion, the altcoin market is an offshoot of that and the same thing is going on here. People are so comfortable buying cryptocurrencies that are not backed by any business. Millions of dollars have been poured into useless ICO tokens that are not even stocks in the companies selling them. You are not entitled to equity in the company, you are not entitled to any voting rights in the company, you are not entitled to profits; you only have a token that is worth only what someone will pay for it and it dances to the price of Bitcoin (BTC).

Bitcoin set out to solve a big problem which was the double spending problem. However, that vision has long been lost. This market is not what it used to be. It is a far riskier market than the stock market. In my opinion, it is even worse than penny stocks because if you invest in penny stocks you are at least buying stock in a bad company. In the case of cryptocurrencies, you are buying a “network token” or a “utility token” or whatever they start calling it next.
Hoping and wishing is a dangerous game to play in any market. In this market, a lot of people are hoping for ETH/USD rallying to a new all-time high during the next halving or soon after. Most altcoin buyers that are sitting on losses think their coins will eventually turn around and they will end up being profitable at some point, but what if they don’t? What if these altcoins are wiped off during the next bear trend? It is very important that we realize that investing in altcoins is not the same as investing even in penny stocks, it’s worse than that from a risk/reward standpoint and should therefore be approached as such.
Source: Crypto Daily

Bitcoin Bulls All Set To Charge Ahead

Way before when the falling wedge that we now see on the BTC/USD chart was a thing, we discussed in one of our video analyses from last month that people are going to gradually start talking about it and it will become common sight to see traders posting about it. That has finally happened and even though some think the falling wedge has yet to be broken, we believe that has already been broken and tested as support. The price is now ready to rally higher soon as it breaks out of the symmetrical triangle. This triangle now has just a few hours left before which it will have to make the decision to breakout either to the upside or to the downside.

The EUR/USD forex pair has a very important role to play in this regard. We have seen the cryptocurrency market dance to the moves of this pair more strongly than before in the past several weeks. This is because the next move in this pair is going to be game changing for many markets. The cryptocurrency market is a very small one, but the EUR/USD forex pair or the S&P 500 (SPX) have had a pull on most markets for a very long time and this is why we see BTC/USD waiting for its next marching orders. If the EUR/USD forex pair ends the week below the trend line resistance but above the 38.2% fib extension level, we can expect another inconsequential week in BTC/USD but if we see this pair close above the trend line resistance then BTC/USD might rally higher over the weekend.

Ethereum (ETH) is in a similar situation as Bitcoin (BTC) and we can see on the 4H chart for ETH/USD that it has round two days to make a decision. If it breaks to the upside, we can expect a rally past $150 and eventually towards the $170 mark which would coincide with the 50% fib extension level. At a time when Bitcoin dominance (BTC.D) seems ready to decline further, Ethereum dominance (ETH.D) seems better placed to take advantage of the current situation and rally higher. If it ends up breaking past the 38.2% fib extension level, we can expect a similar rally that followed after it bottomed in a similar manner the last time. The Fear and Greed Index has turned from “extreme fear” to “fear” but there is still plenty of fear in the market. Until and unless the EUR/USD forex pair declines below the 38.2% or BTC/USD declines below $7,000 we have no reason to bearish on the market near term.
Source: Crypto Daily

Major Bitcoin (BTC) Breakout Is Just Around The Corner

A major Bitcoin (BTC) breakout is just around the corner as we can see on 30 min chart for BTC/USD. This breakout is likely to push the price towards the top of the ascending triangle. If this weekend is as inconsequential as the last few weeks then we might see a subsequent decline down to the bottom of the ascending triangle over the weekend partly erasing a potential bullish move. The rationale behind this is that EUR/USD is currently the major driving force behind Bitcoin (BTC).  Cryptocurrency trading is dominated by whales for the most part at this point in time and they care a lot more about what happens in traditional markets than what happens in the cryptocurrency market.

Most of the trading in this market continues to be fake and a result of wash trading. Bitcoin (BTC) might be a wonderful invention that could someday see mass adoption but we are still in the experimentation phase for now. The price could end up rallying towards $100,000 or it could end up falling below $3,000 and remain below that level for several years. These are all possibilities you need to be prepared for when you invest in Bitcoin (BTC). Mark Cuban has a very interesting view on this as he compares baseballs cards to cryptocurrencies. It is all a matter of what someone is willing to pay for one Bitcoin (BTC) and before you buy that coin, think about why someone sold it to you in the first place. If Bitcoin (BTC) is such a rare asset, why are so many of the big players selling their coins.

No one likes to hear about any of this when we are talking about a potential breakout near term and a major rally towards $8,000 or higher. However, someone has to keep sanity in this market and it is important not to get confused by all the overly optimistic whale sponsored content on most of these mainstream media networks. Don’t get me wrong, there are people who sincerely want to make blockchain adoption possible without any financial incentive but they are a very small minority in this market.
The 4H chart for EUR/USD shows that Bitcoin (BTC) will dance to the tune of this forex pair once again depending on how it closes this week. If we see a close below the trend line resistance and above the 38.2%, we are likely to have an inconsequential weekend in Bitcoin (BTC). If it ends up closing above this trend line resistance, Bitcoin (BTC) can be expected to rally hard over the weekend. It is very important to realize that regardless of any potential bullishness near term, the general trend remains bearish and Bitcoin (BTC) is extremely likely to fall down to the 200 Week MA in the weeks ahead. If it fails to hold its ground there, we could see a decline below $3,000 before the end of this bear market.
Source: Crypto Daily

Bitcoin (BTC) Ascending Triangle Hints At Major Breakout Ahead

Bitcoin (BTC) has just broken above the falling wedge and the trend line resistance that seemed a hindrance has now turned into a trend line support. Despite yesterday’s frightening candle on the 4H chart for BTC/USD that turned the Fear and Greed Index from 24 to 21, the near term outlook of Bitcoin (BTC) remains promising as it has just entered the grey area on the chart and is now likely to rally higher. If the ascending triangle plays out as expected, we might be looking at an aggressive surge in the price that could see it break past the 200 moving average and eventually rally as high as $8,700 before beginning the next downtrend.

The majority of retail traders are expecting some sort of a decline at this point. Recent price action has played a major role in supporting that narrative. Most traders on Crypto Twitter are looking for the price to decline to lower levels so they can buy more before the next “rally to the moon”. It is interesting how most of these traders keep making the same mistakes over and over. They have a large following and they end up misleading most of their followers too. Every time we are in a situation like this, you will see most such traders talk about a decline to a certain level before they can buy more. What actually ends up happening is that the price rallies first and most of these traders miss out, then when it actually declines to that level that most of them have been talking about, nobody wants to buy.

The 1H chart for EUR/USD shows that even though the recent spike in the pair was erased by a large move to the downside soon after, the bullish outlook has not been affected. We can still consider this to be a bull flag that might lead to further upside until we have a break below the 38.2% fib extension level again. It is important to keep trading as simple as possible. If the price ends up closing below the 38.2% in the days ahead, we will reconsider our bullish stance.
The EUR/USD forex pair as well as the S&P 500 (SPX) still have room to rally which is good news for Bitcoin (BTC) and the rest of the cryptocurrency market. However, it is very important to realize that any such bullishness would be short lived and we might soon see things head sideways with the beginning of next year. Billionaire investors like Ray Dalio of Bridgewater Associates are buying billions of dollars of put options against the S&P 500 (SPX) with expiration in March, 2020. At this point, it is not a question of if we will see a correction but when we will see it. In my opinion, it is not worth taking the risk and thinking Bitcoin (BTC) could be “digital gold” or a hedge. It might be a far better idea to sit on cash during that time and therefore you might want to have an exit plan for your investments in this market by the end of the year.
Source: Crypto Daily

Ethereum (ETH) Could Rally More Than 20% Before The Next Downtrend

Patience is paramount to successful trading in any market. We have seen throughout the history of Ethereum (ETH) that certain patterns and fractals have been repeating over and over again. It is thus important to take them into account and be patient and let them play out because most of the time things are not as complicated as we like to think. For instance, the 4H chart for ETH/USD shows us how closely the price is following the same fractal as the one from the last week of September when the price was setting out to rally after a crippling crash.

Just as the price retested the 38.2% fib extension level and declined slightly lower than that, we have seen the exact same thing repeat and the price is now beginning to rally from there. The next big move from here could see Ethereum (ETH) rally as high as 20% from current levels with minor pullbacks along the way. This would be perfect for ETH/USD to test the 200 moving average on the 4H time frame as well as the previously broken market structure before the next decline. If we have a rejection at the previously broken market structure around $177, we can expect a decline back within the descending channel. However, if the price ends up rallying much higher from there towards $200 then something different might be at play here and we would have to be very careful being bearish on the market.

So far, this seems like a good time to hold on to your Bitcoin or Ethereum and wait for the market to rally much higher. Based on how the market reacts there, we can consider being long or short but for now there is no point in being bearish on the market. The 4H chart for ETH/BTC gives us another reason not to be short on the market just yet and that is the near-term outlook of Ethereum against Bitcoin.
We can see on the chart that Ethereum (ETH) has found a strong support against Bitcoin above the 38.2% fib extension level which means that it could rally higher from here. Cryptocurrencies rising against Bitcoin (BTC) is always a good sign for the market because it means that investors are not afraid of taking risks and being optimistic near term. Before the next big downtrend comes into effect, we will see retail traders become more confident and more hopeful in the beginning of a new bull run.
Source: Crypto Daily

Bitcoin (BTC) All Set To Take Off

Bitcoin is struggling to break past the $7,246 resistance which was a strong support before the price declined below it. Even though BTC/USD has now entered the red zone on our chart, we still believe that it is ready to take off and rally much higher. When the price declined into the red zone, it should have crashed hard if it meant to, but the fact that it hasn’t tell us that a move to the upside might be in the offing. The near-term outlook of the EUR/USD forex pair increases the probability of such a move.

The 4H chart for the forex pair shows us that it has now rallied past the 200 MA which means that it could potentially break higher to form a triple top considering it has already broken above the 38.2% fib extension level. The more the price tests a certain level, the higher the probability that it will be broken. This pair has been testing the 38.2% over and over which means that this might be a time for it to rally much higher in the near future. This would be a bullish development for the entire cryptocurrency market because a decline in the strength of the US Dollar means a higher price of Bitcoin in US Dollars.

Ethereum (ETH) presents a clearer picture of what is really going on. The 4H chart for ETH/USD shows how the price has printed the exact same fractal that it did in September, 2019. Based on this, we might have a 20% move in Ethereum (ETH) around the corner. This could comprise of minor retracements along the way but it will come to fruition nonetheless in case of a rally from current levels. We have to see the price test the 200 moving average on the 4H time frame before a major downtrend. The next uptrend is likely to achieve not only that but also a retest of the previously broken market structure. Bitcoin dominance (BTC.D) has room to decline which means that altcoins could rally near term. This is a bullish development for the whole cryptocurrency market. The Fear and Greed Index is also back at “Extreme fear” which means that this might be a good time for contrarians to be bullish on the market.
Source: Crypto Daily

Bitcoin (BTC) Can Still Rally Higher From Current Levels

Bitcoin recently declined below $7,200 which made retail traders fearful once again. The Fear and Greed Index is once again flashing “Extreme fear”. The 4H chart for EUR/USD hints that all of that might soon change as the pair is now ready to rally higher past the 200 moving average. This would be a very bullish development for the cryptocurrency market as a decline in the strength of the US Dollar means higher cryptocurrency prices in terms of US Dollar. The EUR/USD forex pair could rally all the way towards the previous top of 1.11782 before the next decisive move. A move like that could definitely push Bitcoin (BTC) past the $8,000 mark.

The near-term outlook of the EUR/USD forex could lead to a pump in the price of Bitcoin potentially within the next 48 hours. That is because the pair has already broken above the 200 moving average on the 4H time frame which means that it is now ready to rally to potentially make a triple top. RSI on the 4H time frame shows that there is plenty of room for such a move. At a point when everyone is all fearful and the bears are more confident, it makes sense to expect a move that would catch most traders off guard. The bulls would miss out on an opportunity while the bears would end up losing trying to short the market when there is already plenty of fear in the market.

The 4H chart for BTC/USD shows that Bitcoin (BTC) could attempt a break out of the falling wedge despite the temporary bearishness. The price would be in the clear to rally towards $8,300 or higher if it ends up entering the green territory. The fact that BTC/USD did not fall aggressively after it entered the red territory tells us that the market makers and the whales are not on the side of retail bears. There is a strong probability that the price might end up entering the green territory in the near future and rally towards the 200 moving average on the 4H time frame.
The falling wedge that we see on this chart has to be broken sooner or later. If it breaks now, the price could soon rally towards $8,000 to potentially test the previously broken market structure. If it faces a rejection there, then we could be looking at a decline back within the large descending channel. It is important to note that despite any temporary bullishness in the market, there is a very high probability that we will see a decline down to the 200 Week MA which will drag the price below $6,000 and eventually below $3,000 depending on market conditions around the time.
Source: Crypto Daily

Bitcoin (BTC) More Likely Than Before To Test $8,000 Before Next Decline

Bitcoin (BTC) is more likely than before to test the $8,000 mark for a number of reasons. First of all, the price is still holding up quite strongly above the $7,257 support. This has now increased the probability of a rally higher to the 38.2% fib extension level. It could face resistance there but that move is more likely to lead to further upside as we would have to see a test of the previously broken trend line support which has now turned into a trend line resistance. Barring a decline below the current support, BTC/USD is poised to rally significantly higher from here in the near future.

The majority of analysts have once again started to talk about the risks facing Bitcoin (BTC) which is a reason in itself that this rally might have some juice left in it. There is no denying that Bitcoin is eventually expected to decline much lower from current levels potentially below $3,000 but that is very unlikely to happen while everyone is expecting it. Regardless of any short-term bullishness, we can see that there is still a lot of fear in the market which has made the bears more confident. A move to the 38.2% would certainly inflict a lot of pain on the bears just before a major decline but it would be a move to the 61.8% that would take the bears by a complete surprise as it did when the price of Bitcoin (BTC) pumped by more than 43% in a matter of just two days.

The EUR/USD forex pair has once again rallied past the 38.2% fib extension level which is a major bullish development for this pair and therefore for Bitcoin and the rest of the cryptocurrency market. The focus now should remain on this pair staying above the 38.2% because the last time it climbed above it, we saw a subsequent decline below it. However, in technical analysis the more a certain level is tested the higher the probability that it will eventually be broken. We have now seen the pair rally past the 38.2% again which could mean that this time it might end up rallying much higher.
While recent developments in this pair are bullish for Bitcoin at the moment, it is important to note that a move to the downside in this pair would create similar circumstances that saw BTC/USD decline sharply just recently. This pair would thus be instrumental to the rise and fall of Bitcoin in the near future. Investors would be better off keeping an eye on this pair for future movements in the cryptocurrency market. The 4H chart for EUR/USD also shows the pair struggling to break past the 200 MA. If we have a successful break past the 200 MA, we would have a green signal to consider being long on the cryptocurrency market. On the other hand, if the pair faces a strong rejection at the 200 MA, we can expect a decline below the 38.2% down to the 61.8% which will be devastating for the cryptocurrency market.
Source: Crypto Daily

Ethereum (ETH) Ready To Make Fresh Gains After Recent Correction

Ethereum (ETH) declined once again to the 38.2% fib extension level and has now formed a double top there. This has increased the probability of a move to the upside from here which might see the price rise all the way towards $170. We can expect ETH/USD to test the 200 moving average on the 4H time frame if it ends up rallying higher from here. If it declines below the 38.2%, then we can expect it to decline down to the 61.8% fib level at $141.3. However, there is a strong support at $144 which corresponds to the 50% fib extension level from the recent bottom and the 61.8% fib extension level from the December, 2018 low to the yearly high.

Recently, we have seen Bitcoin (BTC) decline harder than Ethereum (ETH) which is something that does not happen often. Bitcoin dominance (BTC.D) as at risk of further decline and the fact that Ethereum (ETH) can hold its ground better compared to Bitcoin (BTC) during a decline tells us that an altcoin rally might be around the corner. Ethereum (ETH) is a good buy above the 38.2% i.e. $147.45 because it could end up rallying much higher from here. If it declines below that level, then we might see it crash hard to potentially test the previous lows again. RSI on the 4H chart would be helpful to keep an eye on at this point. If it maintains its uptrend, we can expect a rally much higher. However, if the uptrend is broken, then we would be looking at the price eventually declining down to $131.9. It is important note though that ETH/USD is highly unlikely to begin another downtrend before testing the 200 MA on the 4H time frame.

The 4H chart for ETH/BTC shows an eagerness to test the 200 moving average as well. However, it failed on the last attempt. We have yet to see if ETH/BTC can successful test the 200 MA and potentially rise higher to test the trend line support turned resistance. Ethereum (ETH) has room to rally against Bitcoin (BTC) but as we can see on the 4H chart, it is not much. The 38.2% fib extension level is what is currently holding ETH/BTC from the next decline.
If the pair decline below the 38.2%, not only are we going to see a decline down to the 61.8% but eventually much lower as Ethereum dominance (ETH.D) enters another downtrend. At the moment, Bitcoin dominance (BTC.D) is eyeing a retest of the 200 day moving average which means that this might be a good time to consider going long on altcoins after confirmation. It is important though to realize the limitations of any potential rally. The 4H chart for ETH/BTC shows us quite clearly that as long as ETH/BTC remains below the trend line resistance, there is no hope of any long term bullish reversal.
Source: Crypto Daily

Bitcoin (BTC) Expected To Rally Further

Bitcoin (BTC) has undone its move that it made on the weekend and the price is back where it was. We called this move in our Sunday’s analysis as the most probable scenario and it has now played out successfully. The question now is, “where is Bitcoin going next from here?” So far, the price is holding strongly above the $7,243 support. However, it remains vulnerable as it could decline within the falling wedge soon as this support is breached and the price starts moving down. As long as the price remains above this support, the bulls do not have much to fear and a move to the upside could be expected. If BTC/USD rallies higher from here, we would expect a retest of the 200 moving average which would potentially push the price past $8,000.

The EUR/USD forex pair has had a strong impact on the price of Bitcoin (BTC) which is why it is important to take it into consideration. The near term outlook of the pair remains bullish as it has just formed a double top but considering that it is trading within a descending triangle, we could see a move down at some point. In any case, Bitcoin bulls do not have much to worry about as long as EUR/USD stays above the 61.8% fib extension level. If it breaks above the 38.2%, that would be an even more bullish development and BTC/USD could certainly push past $8,000 in the case. Ethereum (ETH) shares a similar outlook and we can see that the manner in which it has revisited the 38.2% fib extension level at $147.45 is quite similar to how ETH/USD retested the 38.2% after it had rallied off the temporary bottom following the previous crash.

Bitcoin Dominance (BTC.D) continues to show signs of weakness. This goes in favor of the market as it means altcoins could rally near term against Bitcoin (BTC). This would be in line with our near term expectations for the market. Some cryptocurrencies like VeChain (VET) have already started rallying these past few days. Considering that the Fear and Greed Index is already flashing a “fear” signal, this might be a good time to consider being long near term. However, it is important to realize that there isn’t much room for further upside. Any bullishness from here on out is not likely to last more than a month’s time. This temporary bullishness should therefore not be confused with a trend reversal as the market is far from beginning a new bullish cycle just yet.
Source: Crypto Daily

EUR/USD Forex Pair Outlines What Lies Ahead For Bitcoin (BTC)

The Euro recent made a double bottom against the US Dollar which has now increased the probability of a move to the upside. However, as we can see on the 4H chart for EUR/USD, the pair is also trading within a descending triangle which could be broken to the downside. Descending triangles have a history of leading to further downside and if it happens in this case, we might see a decline below the 61.8% fib extension level which would be a very bearish development for BTC/USD. However, until that happens, there is the strong probability of a move towards the top of the descending triangle. We could also see a fake out that might see the descending triangle break to the upside followed by a decline below the 61.8%.

EUR/USD has had a strong impact on the price of Bitcoin (BTC) for as long as it has been around. Previously, this pair did not seem to affect BTC/USD much because Bitcoin (BTC) would make a lot of wild moves on its own. However, now that this market is maturing, we are seeing a strong correlation between this market, the EUR/USD forex pair and the S&P 500 (SPX). Movements on smaller time frames may not be affected as much but longer trends for BTC/USD are heavily influenced by movements in EUR/USD. The Euro usually serves as a leading indicator for Bitcoin (BTC). We have recently seen many instances of how BTC/USD has followed movements in the EUR/USD forex pair. It makes sense because Bitcoin (BTC) is paired to the US Dollar on the majority of exchanges. So, a rise or fall in the strength of the US Dollar directly affects Bitcoin (BTC).

If the EUR/USD forex pair trades between the 38.2% and the 61.8% fib levels, we would see similar sideways movement in BTC/USD as well. However, if EUR/USD breaks the descending triangle to the upside, we can expect a move towards the 200 MA in BTC/USD which would be slightly above $8,000. On the other hand, if EUR/USD breaks the descending triangle to the downside, we can expect a similar move in Bitcoin (BTC) down to the bottom of the falling wedge.
The 4H chart for BTC/USD shows that Bitcoin (BTC) is now very close to making that decision. Considering that the price has found support above $7,243 and has already completed a short term correction, we expect it to continue higher from current levels towards $8,000. However, we would have to wait for a confirmation of a break out of the falling wedge before entering any positions. If the price declines below the $7,000 mark, that would be a sign to look for bearish entries as it might decline to the bottom of the falling wedge before any bullish reversal.
Source: Crypto Daily

Bitcoin (BTC) Bulls Remain Complacent As Rising Price Raises Expectations

Bitcoin (BTC) rallied aggressively in the past five days after finding a temporary bottom. This move seems to be very close to coming to completion but the bulls have once again become too complacent. Rather than accepting that this might be the end of the move for now, many of them are eyeing further upside even past $8,000 from here. The 15 min chart for BTC/USD shows us how the price broken out of a symmetrical triangle in a fake move to the upside which was then followed by a sharp move towards the 200 moving average. It is important to note that the 200 moving average has yet to be tested on the 15 min time frame which. This retest has become too important at this stage because what follows after it can make or break this rally. 

The reason the market makers and the whales have succeeded with their slow bleed model is because of the mentality of most retail bulls. If the price goes down $2,000 it is considered to be just an unfortunate event or FUD or bad news. However, if the price pumps by just $200 everyone is all excited again and calling for a rally to the moon. The big players in this market continue to profit off this unprecedented complacence and optimism in the cryptocurrency market. They continue to mask their moves with bad news. So, let’s say they want to crash the market; they will make sure the move coincides with some sort of bad news because people love to point fingers, to find a reason. This is how they have been doing this for so long and continue to do so.

The daily chart for BTCUSDLongs is a testament to the blind optimism and sheer complacence prevalent in this market. We can see further rise in the number of longs in the near future but it is quite obvious to see how this is going to end. I can assure you that it is not going to be a pretty picture. Even the BTCUSDLongs chart now shows a bat formation in the making. We have the head of the bat, the left wing and now the right wing is in the making. 
Just a few weeks back, everyone was talking about a decline down to $5,500 but now most of those people are talking about a rally towards $9,000 or higher. In our analyses, we called this recent move in BTC/USD. We have been bullish right before this move happened and we talked about the possibility of a move towards $8,000 as well. However, now we have reached a point where this move has either come to completion or is very close to doing that. To be bullish anymore on the market at this point would be a recipe for disaster. It is still possible that we might see another move to the upside again potentially higher than $8,000 but that is very unlikely to happen at this point without a long overdue correction near term.
Source: Crypto Daily

Ethereum (ETH) Likely To See A Major Breakout This Weekend

Ethereum (ETH) continues to remain above the 38.2% fib extension level against Bitcoin (BTC). It has faced some resistance short term but it seems like the pair is ready to take on the 200 moving average and eventually rally much higher on the 4H chart for ETH/BTC. As long as the pair remains above the 38.2%, the probability of that happening is quite high. At the moment, the 200 moving average coincides with the upper Bollinger band. If the pair breaks past this level, it will lead to an explosive breakout. RSI and the Stochastic indicators on the 4H time frame both favor such a move.

Ethereum (ETH) started the day in green against Bitcoin (BTC) and the trend is likely to continue as long as Bitcoin dominance declines further. Recent developments in the altcoin market are much similar to what we saw in the aftermath of the last crash that saw Bitcoin (BTC) fall to the bottom of the descending channel. The period after saw altcoins rallying against Bitcoin (BTC) while Bitcoin dominance declined. It reached a point of reversal and after that we saw a big pump in Bitcoin and altcoins lagged behind. That was then followed by a gradual decline and eventually a crash. The same appears to be happening this time as we are seeing altcoins begin to rally against Bitcoin (BTC). Ethereum (ETH) could kick off the next altcoin rally as soon as next week after a small pullback near term which is now long overdue.  

Ethereum (ETH) is on the verge of a major breakout not just against Bitcoin (BTC) but also the US Dollar (USD). The 1H chart for ETH/USD shows that the price does not have much room to trade within the symmetrical triangle and will soon have to break out. If it fails to break to the upside, we would expect a retest of the $144 level. If it succeeds in breaking to the upside, we will eye a target of $170 which if broken would propel the price towards the trend line resistance that lies slightly above.
Before the next downtrend begins, the market makers and the whales need to get the bulls optimistic once more. A big move to the upside in the near future would be the best way to do it. Then if it is followed by a minor pullback before the next uptrend, when the price actually begins to crash many investors would think it is just a minor pullback and the price would go up again which it won’t. Patience and discipline is very important here because these are the same games that these big players have been playing over and over. Retail traders cannot change the game but they can avoid falling in the radar of the big players by understanding the game plan.
Source: Crypto Daily

Bitcoin (BTC) Remains Bullish For Now

Bitcoin bulls continue to remain in charge and we are yet to see further upside in the market. However, we before we get into that let us talk about how you should be approaching Bitcoin or any other investment. There are two types of people in any market: traders and investors. If you are a trader you need to have the skill set to trade every move otherwise you will end up losing your coins and in the need you may have lesser number of Bitcoin than you started with. On the other hand, if you are an investor or someone who does not want to be around charts 24/7, you can look at the BTC/USD chart once a week and decide whether the price is oversold or overbought enough to buy or sell based on the RSI or the Stochastic indicator.

Consider an investor who had no idea what stocks to buy in the stock market but put their money in the S&P 500 (SPX) in the 60s. They would still have made an excellent return on their investment despite the numerous crashes we have seen in between from the oil crisis to the recent financial crash which led to the birth of Bitcoin (BTC). The same approach can work in this market for those that do not want to concern themselves with the nitty gritty of trading. In fact, it could be much more rewarding in this market compared to the stock market but it could also be riskier as most cryptocurrencies are not backed by any real businesses. The ongoing bear market is far from over yet which means that value investors might want to wait before they buy again for long term.

The 4H chart for BTC/USD shows that there might be opportunities to trade near term. We have now seen the price attempt to rise towards the top of the falling wedge. It has done this in a sluggish manner with prolonged sideways movement followed by a few big pumps to the upside. However, we could still see it rise towards $8,000. If it breaks higher than that then we could expect a retest of the 200 moving average. However, that does not seem very likely at this point. The ETH/USD chart shares the same outlook and is expected to outpace BTC/USD if the market continues to rally higher. Meanwhile, the EUR/USD forex pair has printed a double bottom which bodes well for the entire cryptocurrency market. While the market has room to rally for now and the bulls remain in control, it is important to note that the market is close to finding a local top and we might soon see a correction when the ongoing move comes to completion.
Source: Crypto Daily

EUR/USD Double Bottom Hints At Further Gains For Bitcoin (BTC)

The Euro has finally formed a double top against the US Dollar which has now increased the probability of a move to the upside in the EUR/USD forex pair. The 4H chart shows this double bottom and the range that the pair has been trading in since it declined below the 38.2% fib extension level. There is a good chance that the pair will keep on trading within this range even if it sees further upside for now. However, if it ends up closing the week with a move to the upside, this will be a very bullish development for the cryptocurrency market.

When the EUR/USD forex pair declined below the 38.2%, it closed the week without completing the move down to the 61.8% fib extension level. Professional traders were aware of this and they expected this move to be completed next week which is why they were more bearish on cryptocurrencies during the weekend and this is how we saw a massive crash in the price of Bitcoin (BTC) and other cryptocurrencies. If we see the EUR/USD forex pair end the week close to the 38.2%, many traders will expect a retest of that level next week which would make them bullish on Bitcoin (BTC) this weekend. That being said, it is very important to be cautious because BTC/USD is now very close to topping out short term. However, a move towards $8,000 is still quite likely.

The 4H chart for BTC/USD shows how there is little room for the price to rally higher from here. It is expected to break out of this falling wedge but that is unlikely to happen under such overbought conditions. The most probable scenario would be a move out of this falling wedge towards $8,000 that would have many traders thinking that a big pump is in the making which would likely fail and result in another downtrend in the days ahead.
Bitcoin (BTC) could make another pump similar to what it has in the past either at this point or at a later point after a near term correction. However, it is important not to be distracted by these moves because the major trend is to the downside. The focus should remain on BTC/USD declining down to $5,500 and potentially much lower during the next downtrend. This bear market is a long way from being over just yet which is why any bullish positions ought to be entered with extreme caution and tight risk management.
Source: Crypto Daily