0
📈 Price Predictions
44 views

Bitcoin Bounces Up as Ethereum, NEO Look For Troubles: Crypto Price Analysis, Aug. 31, 2018

Put your
crypto to
work
  • 0.00

    Interest per week

  • 0.00

    Interest per year

  • 0.0

    Interest rate

Join Now!
Sponsored by Celsius.Network
  • Vaido Veek
    📈 Price Predictions

    Like we had planned- pullback happened and the bounce level was precise!

Bitcoin Bounces Up as Ethereum, NEO Look For Troubles: Crypto Price Analysis, Aug. 31, 2018
Cover image via u.today

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

*** Please note the analysis below is not investment advice. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of U.Today. Every investment and trading move involves risk, you should conduct your own research when making a decision.

BTC possible targets

Yesterday, after we posted- we could make a pullback and you already know where to enter the trade ($6,709-$6,800) if the pullback occurs. It happened, and we also got a bounce upwards exactly from $6,800. The current price is $7,000 and we are our first target point where we could take out some partial profits because if the market wants to go lower then here is the decent place where it could turn around because in this area it makes a lower high on the price structure, but if we start to go higher than our next targets would be:

2. Around $7,300- strong and historically worked levels!

3. Around $7,500- final target:

* Fibonacci pulled from July 24- Aug. 14

* Round number

* Trendline since May 5th

* Fibonacci extensions (entry point Fibonacci's)

* Round number and Fibonacci retracement level are just SO identical!

Let's see how the market and the price reacts on these price levels.

Ethereum managed to stay ‘healthy’ and it got a bounce from our mentioned level!

Currently, on the Ethereum chart, we could see that it stayed "healthy.” Like we expected yesterday we have to bounce upwards around $270-$275 if the price structure wants to stay bullish and exactly from this area we got our bounce and we have made a clean higher low (HL) on the chart. The bounce was supported with a perfect Fibonacci retracement level 62 percent and a blue line which means the strong support area.

Now our nearest resistance is this triangle upper trendline and round number $300 crossing area! Those crossing areas area always hard to beat but if we see at least a four-hour candle close above the $300 then it could be mean that we make another leg upwards and if Ethereum wants to make a higher high (HH) then we have to see a candle close around $330.

NEO (NEO/USD) shows some mixed patterns!

At the moment, NEO is grinding upwards in the rising channel, clean touches from trendline and also clearly visible higher highs(HH) and higher low(HL).

Like all the crypto market made a little pullback and so as NEO.  Price falls below the round number area which is currently $20. The pullback finds the end from a 50 percent Fibonacci retracement level, old resistance area becomes a support area and it was close to the trendline.

Currently, we fight with a round number $20 which works as a resistance, on the four-hour chart we are above the 50 and 100EMA and they are pointed upwards, which is a good sign.

To confirm bullishness then we have to make a new higher high and break above the 200EMA then we have almost a clean run to the next resistances $27.03 (June low) and the main resistance around $30. The main resistance consists of two monthly levels July low and Aug. high + we have there a trendline which is pulled from four-chart candle bodies and pulled from July 5 -Aug. 18.

To confirm bearishness on the NEO/USD chart:

"NEO Shows some mixed patterns"- it means that we are in the bearish chart pattern "Bear Flag" and if you draw some lines differently (no mistake) then it could be also a continuation pattern called "Rising Wedge.” And if we get a close below the gray area then it would be an easy confirmation. We have made a lower low, we have a break below the channel (rising wedge) bottom trendline and the trend is your friend.

Hopefully, this helps you out a little bit to confirm your own analysis.

Have a nice day!

Join our Telegram channel to get news even faster!

About the author

Vaido Veek hopes to become a leading voice in technical analysis by educating people about how the perfect TA  should look like. He has over 5 years of charting experience and loves to solve the patterns that   they show us. His slogan is "keep it simple"!

TOP TRADING BOTSPromoted
Recommended articles
CLOUD MININGPromoted
0
🤷 Opinions
732 views

Why China Fever on Bitcoin is Already Dropping After 1 Month of Blockchain Optimism

Put your
crypto to
work
  • 0.00

    Interest per week

  • 0.00

    Interest per year

  • 0.0

    Interest rate

Join Now!
Sponsored by Celsius.Network
  • Joseph Young
    🤷 Opinions

    The so-called “China fever” on crypto like bitcoin has noticeably declined since President Xi’s speech on October 28.

Why China Fever on Bitcoin is Already Dropping After 1 Month of Blockchain Optimism
Cover image via 123rf.com

Since Chinese President Xi Jinping expressed his support for blockchain technology on October 28, the so-called “China fever” on crypto like bitcoin has noticeably declined.

The price of bitcoin fell from around $10,600 to $8,500 and cryptocurrencies that are known have Chinese development teams such as NEO, Ontology, and TRON have slightly increased over the past three weeks, but not enough to be described as a speculative mania.

Why demand for bitcoin and other cryptocurrencies is not on the rise

Following the newly established vision of the Chinese government to push the development of blockchain technology, expectations for strengthened momentum of the cryptocurrency market rapidly increased.

Initially, such expectations combined preceded an abrupt overnight increase in the price of bitcoin to above a key “psychological level” at $10,000, but the price fell back to “pre-Xi” levels in a relatively short period.

Global markets analyst Alex Krüger said:
“Have mainland China investors increased their demand for bitcoin? BTC volumes quickly dropped back to pre Xi news levels; online searches in China are back down to pre Xi news levels; website traffic for exchanges catering to China barely changed since the news.

The ‘Chinese tokens,’ NEO, ONT and TRX, have all done well since the aftermath of the news, while VET (a supply chain oriented blockchain) has been cruising on China news. Don't think though this is a sign of a ‘speculative fever’ of any kind.”

The analyst emphasized that prior to the statement of President Xi on the focus of China to facilitate the development and implementation of blockchain technology, the penetration of cryptocurrencies in the region was already high.

Also, most mainland Chinese cryptocurrency investors are said to have been trading digital assets through overseas markets like Hong Kong, purchasing stablecoins like Tether with the Hong Kong dollar.

Hence, it is possible that the public already anticipated the government of China to eventually reiterate its plans to encourage blockchain development with the People’s Bank of China (PBoC) consistently stating that its plans for a state-operated digital currency is in the works.

“It is without doubt that with the announcement of Libra, governments, regulators and central banks around the world have had to expedite their plans and approach to digital assets,” Dave Chapman, BC Technology Group executive director, said.

Is this the end of the Xi-effect?

Some technical analysts have suggested that the upside movement of bitcoin to $10,600 in late October may have not been primarily fueled by the optimism around China’s blockchain development initiative, and that a cascade of short liquidations amidst a build up of sell pressure caused the rally.

Only the most important posts per day. Infographics, analytics, reviews & summaries. Join our Telegram channel!

About the author

Joseph Young is an analyst based in South Korea that has been covering finance, fintech, and cryptocurrency since 2013. He has worked with various recognized publications in both the finance and cryptocurrency industries.

TOP TRADING BOTSPromoted
Recommended articles
CLOUD MININGPromoted

This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy

Cookie settings