Cryptocurrencie Outlook January 2018

Bitcoin: False Rumors

Reports that China were to ban bitcoin mining in the country contribute to Bitcoin’ selling in the market, which shoved the price below $11,000. The People’s Bank of China (PBOC, China’s central bank) denied meetings were held to ban bitcoin mining, which assisted BTC/USD recovery in the market.

To our understanding, the reports a ban in China was imminent was triggered by a well-known bitcoin investor, which an individual has impersonated to be. In addition, reports that PayPal’s founder, Peter Thiel has been actively buying bitcoin has assisted the corrective gains in the cryptocurrency.

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Cryptocurrencie Outlook January 2018

BTCUSD Weekly Chart 07/01/18

The weekly chart painted a technical pattern we often see in other financial markets. From a technical angle, there has been a signal the price is due to correct lower but it is being challenged by the market. Bitcoin will have to firmly break above $19,200 in order to continue trading higher.

We suspect the cryptocurrency may struggle to affirm such a breakout. The price could re-test $19,200 but at the time of this writing the scenario of further weakness is favorable. The target of the potential reversal is below $10,000.

This is a fairly mixed outlook, there is a stronger case for corrective weakness than a break above $19,200 at the time of this writing.

Bitcoin Signal Strategy

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Cryptocurrencie Outlook January 2018

BTCUSD 4hr Chart 07/01/18

BTC/USD 4hr chart displays an intraday uptrend in the cryptocurrency. While it may be tempting to consider buying bitcoin should the price retrace lower towards the lower support, we would like align the signal with the weekly chart we presented earlier.

Rather than adopting a buy-on-dips approach we favor a breakout strategy. Should the price post a 4hr close below the lower blue line (support) we would expect to see further selling in the cryptocurrency, targeting $14,200.

Ethereum at Historic Highs

Similar to Ripple Coin (XRP), Ethereum posted significant gains the market. As we are witnessing historic highs for ETH/USD it is extremely difficult to provide an outlook for the cryptocurrency. We suspect investors are looking into other cryptocurrencies due to the significant gains that took place in bitcoin in recent months.

We were rather successful in predicting the historic gains in Ripple Coin. Should XRP/USD trade over $1,000 (we cannot suggest this will indeed be the case) it may create a vacuum for undervalued cryptocurrencies to post moderate gains.

Ripple Coin Outlook and Strategy

 XRP/USD has posted a reversal pattern on the daily chart but it is considered a weak signal. The difference between Ripple Coin’s pattern and bitcoin is that the technical pattern is not being challenged by the market at the time of this writing.

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Cryptocurrencie Outlook January 2018

XRPUSD Daily Chart 07/01/18

XRP/USD daily chart suggests the cryptocurrency is due to reverse lower, targeting $2.0500. While by the book the price can re-test $3.2400 before reversing lower. 2.800 may act a firm resistance. As the signal is not as firm as we would have liked should Ripple Coin break above $2.800 it may invalidate our outlook for the cryptocurrency. In an event the price reaches 2.0500 and holds it may trigger some corrective gains, targeting 2.4400.

Ripple coin posted strong gains in the market. Reports that large money transfers companies may adopt XRP in 2018. Due to its low value when compared to bitcoin it is more attractive.

08/01/18 UPDATE: Heavy selling were noted across several cryptocurrencies as it was reported CoinMarketCap decided to disable the prices from South Korean exchanges from its calculations, which was a fairly surprising move.

As a result of these reports both BTCUSD and XRPUSD acquired their technical objectives as we presented in the strategies.

BTCUSD 4hr Chart

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Bitcoin Signal 8 January 2018

BTCUSD 4hr Chart 08/01/18

XRPUSD Daily Chart

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Ripple Coin Signal 8 January 2018

XRPUSD Daily Chart 08/01/18


Cryptocurrencie Outlook January 2018

Last Updated on January 9, 2018