CryptoCurrency Business

Are you trading crypto theese days?

The latest Daily Pivots show us continued bias to the upside. Despite the pullback the last 2 days and our modest recovery, there may be more left in the bull move. However, the 60 minute chart shows the 3 Day Rolling Pivot Range (green/yellow dots) as resistance so we will need to see confirmation with the hourly candle closing above the 3 Day RPR high, at 1481.00.

Also considering the 14 Day Pivot Moving Average (red line) is edging back up, this makes the case for upside more compelling.

The action to take is to buy on a confirmation of strength and enter a long position only if the market closes above 1481.00. If triggered, place the stop loss and profit targets stated below.

Entry Price: 1481.00
Stop Loss: 1370.00

Profit Targets: First profit target 1615.00. Second profit target 1720.00. Once first profit target is reached, bring stop loss to breakeven, then as the market makes new highs, trail a stop loss on remaining position 50 points behind to safeguard profits or until second profit target is hit.

Litecoin on the Move

Consolidation period in most of the majors continued in Asian trading today, with the overhead resistance still towering above Bitcoin and Ethereum. In another bullish turn of events, Litecoin, which has been gathering relative strength in recent days, popped higher, taking out the crucial $170-$180 resistance zone.

As LTC has been the leader of the rally off the crash lows, the strength of the coin is a very strong sign that the advance has legs, and the rest of the segment will resolve the consolidation pattern in a bullish way.

The dominant downtrend is still intact even in LTC before the much-awaited LitePay launch , and those short-term traders who entered positions should expect strong resistance again near the $200 level and the coinciding descending trendline. Support is now found in the same $170-$180 zone, while further strong resistance ahead near $250, and a weaker level at $225.

The largest digital currency is also knocking on the door of the $9000-$9200 resistance zone that has been capping BTC’s advance in the recent period. The coin moved out from the short-term triangle pattern that formed in the past few days. While the trend change is still not confirmed, a quick rally to $10,000 is in the cards now in the coming days.

As volatility in traditional assets will likely spike in the coming hours, with the crucial Consumer Price Index and the Retail Sales report coming out in the US, the crypto-segment might also experience wild swings.

Altcoins Showing Encouraging Signs

All the majors are sporting gains today, and the early leaders of the rally, Dash, Stellar, and IOTA also showing strength, albeit not as much as LTC. Traders should also keep an eye on Monero that is still in a strong technical position, close to breaking the down-sloping trendline, while Ethereum Classic will likely take a break after its surge.

Although further volatile swings are expected, and a new uptrend is yet to be established in the segment, the bullish signs that emerged last week are still present, and a new cycle is likely underway.

Trade Recommendation: Ethereum

The bias remains to the upside for the short term with the price trading above the Daily Pivot Range, therefore this level is key support. The price did test the Daily Pivot Range low and rallied off this level which is clear support.

The 14 Day Pivot Moving Average is turning up, and crossing the 30 Day Pivot Moving Average and this is bullish.

The action to take is to place a buy order to enter the market long if the market trades at or above the yellow ‘C’ up line for at least 15 minutes. Use discretion to get as close to 878.5 as possible and be careful not to buy on a spike, rather wait for a retracement. Place the stop loss at the Daily Pivot Range low and the profit targets stated below.

Entry Price: 878.5
Stop Loss: 858.16

Profit Targets: Profit target 905.00. Once price reaches the first profit target raise the stop loss to breakeven. Then as the market follows through to higher levels manage the trade by trailing a stop loss 25 points behind until profit target is reached or stopped out.