Cryptocurrencies Strategies Mid October 2017

Bitcoin Forecast

Follow a relatively strong week prior to the fork bitcoin (BTC/USD) inside a distinct price range at the time of this writing on the 4hr chart.

BTC/USD 4hr Chart

Please click on the chart to enlarge:

BTCUSD 4hr Chart 17/10/17

Since 13 October bitcoin has been held inside a range, $5,425 – $5,850. The price may continue trading inside the range until a breakout materializes. As we are witnessing historic highs for the cryptocurrency determining an objective for a break to the upside (above $5,850) is challenging.

Assuming the volatility we have witnessed last week will continue a firm break above $5,850 may pave the way for stronger gains towards $7,000.

A break to the upside may trigger stronger gains than a break below $5,425. A firm break below $5,425 (preferably a daily close) the latter support is seen at $4,900. The weakness however may be contained at a higher price but $4,900 may offer a firm support should a break to the downside materialize.

Bitcoin Strategy and Signal

Although the time frames may vary we are focusing on the hourly chart for our BTC/USD trading strategy. Hourly char strategies are more sensitive than longer time frames.

Please click on the chart to enlarge:

BTCUSD 60min Chart 17/10/17

Very similar to the 4hr chart the key levels we mentioned earlier may be used to establish intraday trades in BTC/USD but an hourly level. It is possible to trade inside the range but the support / reistance levels may offer a more attractive entries in the cryptocurrency as well as the potetnial breakouts.

A more aggressive approach is to attempt to capitalize over the hourly downtrend. The price has painted lower highs and lower lows, which is one of the signals for an established downtrend.

Ethereum Forecast

As opposed to BTC Ethereum (ETC) we are not at historic levels. We are using the daily chart to present our forecast for the cryptocurrency.

ETH/USD Daily Chart

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ETH/USD Daily Chart 17/10/17

The break above $312 (former resistance level) triggered mild gains in ETH/USD towards $345. The recent weakness appears to be corrective before a resumption of the uptrend. The price requires to test $312 (preferably a daily close) which may then trigger corrective gains in the cryptocurrency.

The objectives of gains from a technical angle are $345 initially and then $360. In an event Ethereum posts a daily close below $312 the latter is support is seen at $283, however, it may not provide a short (sell) entry. Our preferred strategy would be to wait for a re-test of $2823, which if holds may then trigger corrective gains in the market.

In regards to signals, we do not have any intraday entries in the ETC/USD at the time of this writing. We will update the strategy should a new entry emerge in the market.

Ripple Coin Forecast

Although Ripple coin (XRP/USD) may appear to be held in a range at the time of this writing we are noting the potential for a resumption of the downtrend.

XRP/USD Daily Chart

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XRP/USD Daily Chart 17/10/17

The 0.2800 resistance level was able to prevent further gains in the cryptocurrency, which lead to the recent weakness. Despite the range there is a greater risk for price to maintain its downtrend towards 0.2200, which may then reverse higher if it holds.

Based on the daily chart, only a firm break above 0.2800 may encourage further gains in Ripple Coin, we will re-assess the cryptocurrency should such a breakout materialize.

XRP/USD Strategy and Signal

Please click on the chart to enlarge:

XRP/USD 60min Chart 17/10/17

The hourly chart shows the price is being held in a tight range. This is a classic technical setup for breakout signals. Should the price break above the resistance (upper blue line) it may pave the way for stronger gains. 0.2545 is the approximate breakout level.

We must highlight that should the price break below the support (lower blue line) it may not provide a short (sell) entry in the cryptocurrency.


BTCUSD 4hr Chart

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BTCUSD 4hr Chart 30/10/17

BTCUSD 4hr Chart 30/10/17

The price paid no attention to the upper resistance as it was violated on multiple occasions. The dip below the support reached $5,098, missing the $4,900 mark. The second re-test of $5,425 was successful.

Although the price has extended higher the technical structure of BTCUSD has changed, which we will discuss in the next update for the cryptocurrencies.

ETHUSD Daily Chart

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ETHUSD Daily Chart 30/10/17

Our strategy and projections for Ethereum were as expected. Once the price breached $312 it lead to a re-test of $283, which prevented further weakness in the cryptocurrency.

XRPUSD Daily Chart

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XRPUSD Daily Chart 30/10/17

Ripple Coin weakness resumed as expected. However the support level failed to hold the price after containing the selling on the first test. This alters the technical outlook for XRP/USD, which we will outline in the next update.